ZIMPLATS says platinum group metal (PGM) production volumes declined by 15 percent to 279 890 ounces in the half-year period to December 31, 2024.
This decrease was attributed to various production challenges, including lower concentrator output, increased furnace lockup, and delays in commissioning expanded smelter converters, resulting in a backlog of 23 191 PGM ounces.
Mined volumes decreased by 2,5 percent to 3,9 million tonnes, leading to a 2,6 percent drop in milled volumes to 3,8 million tonnes, primarily due to reduced ore supply.
Zimplats chief executive officer Mr Alex Mhembere cited poor availability of trackless mobile machinery, intermittent power supply interruptions, and a slow ramp-up at Bimha Mine following injuries as key factors contributing to these setbacks.
Declining metal prices, including a 15 percent drop in palladium prices, further strained Zimplats’, a unit of South Africa’s Impala Platinum Holdings, and Zimbabwe’s biggest PGMs producer, prompting the company to scale back projects such as the sulphur abatement and solar power plant expansion.
“Mined volumes were hampered by poor trackless mobile machinery (TMM) availability at Mupfuti, Bimha and Mupani mines, intermittent interruptions to power supply at operations, and a slow ramp-up at Bimha Mine following several lost-time injuries.
“Volumes declined by 2,5 percent to 3,9 million tonnes from four million tonnes in the comparable period last year,” said Mr Mhembere in the half-year financial review to December 2024.
The average mill head grade for the six key elements (6E) – platinum, palladium, rhodium, gold, ruthenium, and iridium – edged up to 3,38 grams per tonne (g/t) from 3,34 g/t in the prior year’s comparable period.
This improvement was driven by enhanced mining quality across all mines and increased production from higher-grade areas at Rukodzi and Bimha mines.
However, several operational challenges hindered overall 6E production, which declined 15 percent to 279 890 ounces from 327 810 ounces in the same period last year.
These challenges included lower-than-expected concentrator output, increased furnace downtime, and delays in commissioning expanded smelter converters, resulting in a backlog of 23 191 6E ounces between concentrate and final production.
As a result, revenue decreased by six percent to US$350,2 million, impacted by a 13 percent reduction in sales volumes.
Despite these challenges, Zimplats achieved a profit after tax of US$4,1 million, a significant turnaround from the previous period’s US$8,8 million loss.
This improvement was largely due to higher average prices for most metals, except palladium, nickel, and cobalt.
Looking ahead, Zimplats is prioritising capital projects to maintain production stability, focusing on expanding processing capacity, refurbishing the base metals refinery, and securing renewable power generation.
The company remains on track to achieve full production at the Mupani Mine by the first half of financial year 2029 and has completed the Bimha Mine upgrade, achieving a production capacity of 3,1 million tonnes per annum. – Herald
