Zimplats has reported a 15% decline in platinum group metal (PGM) production, with output falling to 279,890 ounces for the half-year ending December 31, 2024.
The drop was attributed to production setbacks, including reduced concentrator efficiency, increased furnace lockup, and delays in commissioning expanded smelter converters, leaving a backlog of 23,191 ounces.
Mined volumes also saw a 2.5% decline to 3.9 million tonnes, which in turn led to a 2.6% reduction in milled volumes, now at 3.8 million tonnes, primarily due to limited ore supply.
Zimplats CEO Alex Mhembere pointed to several operational difficulties, including poor availability of trackless mobile machinery, power supply disruptions, and slow progress at Bimha Mine following injuries, as key factors affecting production.
Falling metal prices, particularly a 15% drop in palladium, further impacted Zimplats, a subsidiary of South Africa’s Impala Platinum Holdings and Zimbabwe’s largest PGM producer.
In response, the company has scaled back projects such as sulphur abatement and the expansion of its solar power plant.
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“Mined volumes were affected by limited availability of trackless mobile machinery at Mupfuti, Bimha, and Mupani mines, frequent power supply interruptions, and a slow recovery at Bimha Mine after a series of lost-time injuries,” Mhembere stated in the company’s half-year financial review.
Despite these challenges, the average mill head grade for key metals platinum, palladium, rhodium, gold, ruthenium, and iridium improved slightly to 3.38 grams per tonne (g/t), up from 3.34 g/t in the previous year, aided by improved mining quality and higher-grade ore from Rukodzi and Bimha mines.
Revenue fell 6% to $350.2 million due to a 13% decline in sales volumes. However, Zimplats posted a profit after tax of $4.1 million, a significant recovery from an $8.8 million loss in the previous period.
This turnaround was mainly driven by improved prices for most metals, except palladium, nickel, and cobalt.
Looking forward, the company is focusing on capital projects to stabilise production, including processing capacity expansion, base metals refinery refurbishment, and investment in renewable energy.
Full-scale production at Mupani Mine is expected by the first half of the 2029 financial year, while the Bimha Mine upgrade has been completed, now boasting an annual output capacity of 3.1 million tonnes.
