LEADING platinum producer, Zimplats, has reported a 21% year-on-year drop in refined 6E metal production for the quarter ending December 2024, attributing this decline to reduced mined volumes, power disruptions, and operational halts.
6E metal production includes platinum, palladium, rhodium, ruthenium, iridium, and gold.
Total 6E production decreased to 129,536 ounces, down from 163,307 ounces during the same period last year. Platinum output fell by 19% to 60,720 ounces, while both palladium and gold production saw a 21% decline.
“The decrease was mainly due to lower ore supply and constrained operating capacity at concentrator plants following mill shutdowns,” Zimplats stated in its quarterly report.
Mining volumes were affected by the transition at Ngwarati Mine, which halted primary operations in June 2024.
Although increased output from Rukodzi and Mupani mines is helping to mitigate the shortfall, a full recovery is still in progress.
In spite of these production challenges, Zimplats has expanded its smelting capacity, having commissioned a new 38MW furnace and smelter converters to enhance metal recoveries in the upcoming quarters.
Operating cash costs rose by 3% quarter-on-quarter, driven by higher power costs and engineering maintenance.
The cost per 6E ounce surged by 13% year-on-year to $935, reflecting the effects of lower production volumes.
Zimplats confirmed that its capital projects are on track, with $339 million invested in Mupani Mine, which is anticipated to reach full production by 2029.
Additionally, the company has completed a 35MW solar plant, aiming to lessen dependence on Zimbabwe’s unreliable power grid.
With platinum group metals (PGM) markets facing challenges, Zimplats is focusing on improving efficiency and investing in infrastructure to stabilise output and address ongoing operational risks.
