Online Reporter
Nqobile Bhebhe, Zimpapers Business Hub
ZIMBABWE’S leading platinum producer, Zimplats, has reported a three percent year-on-year increase in total operating cash costs, mainly attributed to the commissioning of its new 38MW smelter, the resumption of open-cast mining activities and the timing of major engineering component replacements.
In its quarterly report for the period ending 31 March 2025, the company noted that despite the year-on-year cost increase, there was a two percent decline in operating costs compared to the previous quarter, driven by lower variable costs due to reduced mining and milling volumes.
“Total operating cash costs increased by 3 percent year-on-year and were negatively impacted by higher power costs of operating the 38MW new smelter, resuscitated open-cast mining operations and timing differences on the replacement of major engineering components.
“Total operating cash costs improved by two percent from the prior quarter, positively impacted by lower variable costs associated with lower mined and milled volumes,” the company said.
Zimplats also disclosed that US$6,4 million was reclassified from inventory to operating costs, following the processing of previously stockpiled concentrate.
Despite some quarter-on-quarter relief, the cash cost per metal produced increased by six percent year-on-year and spiked by 18 percent from the previous quarter. This was reflected in the company’s 6E (six-element) operating cash unit costs, which rose sharply to US$1,026 per ounce, a 25 percent jump year-on-year and 10 percent quarter-on-quarter.
“Lower reported volumes negatively impacted 6E operating cash unit costs,” Zimplats noted.
On the capital projects front, Zimplats said the Smelter Expansion and SO₂ Abatement Plant continues to make solid progress, with US$452 million spent to date out of a total US$544 million budget.
