Online Reporter
Business Reporter
Zimplats, a major platinum group metals (PGM) producer, reported lower mining volumes for the quarter ending March 31, 2025, primarily due to trackless mobile machinery (TMM) availability issues, leading to an 11 percent year-on-year and 4 percent quarter-on-quarter decrease.
To counter this, open pit mining was restarted in January, contributing 76 000 tonnes, or 4,3 percent of the mined volume during the quarter.
The “6E” head grade, representing the combined grade of six precious elements including platinum, palladium and rhodium, saw a slight 1 percent year-on-year increase but a 1 percent quarterly decline due to lower-grade open pit ore.
Ore supply constraints resulted in a 17 percent year-on-year and 8 percent quarter-on-quarter drop in milled volumes.
Adjusted 6E concentrate production, the total ounces of these six metals in the concentrate, fell by 20 percent year-on-year and 15 percent quarter-on-quarter to 135 172 ounces.
Final metal production was impacted by furnace optimisation.
While 60 000 tonnes of concentrate were smelted, clearing prior inventory, around 12 100 6E ounces accumulated in furnace reverts.
Final 6E metal output of 139 506 ounces was 16 percent lower year-on-year but 8 percent higher than the previous quarter.
Zimplats expects to release approximately 16 000 6E ounces of in-process inventory in the next quarter.
The country’s largest PGMs producer recorded a three percent year-on-year increase in total operating cash costs, primarily driven by increased power consumption from its new smelter, the restart of open-cast mining operations and scheduled replacements of key engineering components.
Zimplats noted that although year-on-year costs went up, total operating costs fell two percent compared to the previous quarter, largely due to lower variable costs stemming from reduced mining and milling volumes.
“Total operating cash costs increased by three 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 accumulated concentrate stocks.
Despite the overall cost containment in the quarter, the company reported a six percent year-on-year increase in cash cost per metal produced, with an 18 percent jump from the previous quarter. This was mirrored in the 6E (six-element) operating cash unit costs, which rose to US$1,026 per ounce, up 25 percent year-on-year and 10 percent quarter-on-quarter.
“Lower reported volumes negatively impacted 6E operating cash unit costs,” Zimplats noted.
Zimplats highlighted continued progress on its major capital projects. The smelter expansion and sulfur dioxide (SO2) abatement plant has now consumed US$452 million of its US$544 million budget. In renewable energy, the miner marked a key milestone as its 35MW solar plant commissioned in August 2024 achieved full generation capacity by December 2024.The project was delivered within budget at US$37 million.
