daniel chigunwe
Business Writer
Zimplats, a leading platinum group metals producer in Zimbabwe, has reported a solid performance for the quarter ended September 30, 2024, driven by increased production from the Mupani Mine and the ongoing commissioning of the expanded smelter.
According to an update released by the company on Wednesday mined volumes for the quarter increased by 3 percent year-on-year and quarter-on-quarter, reflecting the successful transition from the Ngwarati Mine to Mupani Mine.
The higher-grade ore from Mupani Mine contributed to a 2 percent year-on-year and 3 percent quarter-on-quarter increase in 6E head grade.
Despite a decline in concentrator recoveries, the higher mill feed grade and increased production from Mupani Mine resulted in a 1 percent year-on-year and 2 percent quarter-on-quarter increase in 6E metal in concentrate.
However, the commissioning of the expanded smelter led to a 9 read year-on-year and 3 percent quarter-on-quarter decrease in 6E metal in final product, as concentrate was stockpiled for the new furnace.
Total operating cash costs increased by 6 percent from the prior quarter, primarily due to higher mining production, the strengthening of the South African rand, and timing differences in the replacement of major engineering components.
However, quarterly costs decreased by 1 percent year-on-year due to cost-saving initiatives.
Cash costs of metal produced decreased by 1 percent quarter-on-quarter and were 8 percent lower year-on-year.
Operating cash cost per 6E ounce increased slightly to US$841, reflecting the impact of lower 6E metal production on fixed costs.
Major projects update
According to the update, Zimplats continues to invest in its operations to ensure long-term growth and sustainability.
The development of Mupani Mine, which is expected to reach full production of 3.6 million tonnes per annum in the first half of FY2029, is progressing well. Additionally, the Bimha Mine upgrade has been completed, increasing its capacity to 3.1 million tonnes per annum.
The expanded smelter and SO2 abatement plant project is also progressing as planned, with hot commissioning commencing in October 2024. The 35MW solar plant, which was commissioned in August 2024, is ramping up power generation to its design capacity.
Bongani Ndlovu