Tawanda Karombo
Impala Platinum’s Zimbabwean unit, Zimplats was affected by power supply interruptions and poor availability of trackless machinery during the half-year period to December 2024, consequently lowering down mined volumes by 2.5% compared to the same period a year earlier.
Zimplats has completed re-development of the large Bimha mine which now has capacity of 3.1 million tons per year.
However, during the period under review, Zimplats’ mined volumes “were hampered by poor trackless mobile machinery (TMM) availability at Mupfuti, Bimha and Mupani mines” while “intermittent interruptions to power supply at operations and a slow ramp-up at Bimha Mine following several lost-time injuries” also weighed in.
This forced down mined volumes by 2.5% to 3.9 million tons compared to 4 million tons in the comparable period in 2023.
Tons milled also decreased by 2.6% to 3.8 million tons due to lower ore supply while metal in concentrate production declined by 2% year-on-year to 279 890 6E ounces.
However, Zimplats’ 6E mill head grade improved marginally to 3.38 grammes per ton. This has been attributed to “improved mining quality across the mines and increased tonnage from higher-grade zones” at Rukodzi and Bimha mines.
“Lower-than-planned concentrator production, increase in furnace lockup and the delayed commissioning of the expanded smelter converters impacted 6E production, which decreased by 15% to 279 890 ounces from 327 810 ounces. In total 23 191 6E ounces were accumulated between concentrate and final production in the period,” said Zimplats CEO, Alex Mhembere.
During the half year period, Zimplats suffered a 6% dip in revenues to $350.2 million (R6.4 billion). This was caused by a 13% decline in sales volumes to 279 740 6E ounces as average metal prices were 8% higher for the period.
Moreover, cost of sales decreased by 6% to $323m on the lower sales volumes, partly offset by a 7% increase in costs to $885 per 6E ounce produced.
Consequently, profit before income tax was 37% lower at $8.9m after an income tax charge of $4.7m for the half year,
Interim post tax profits in Zimplats improved to $4.1m compared to a loss of $8.8m in the previous contrasting period, although there was no dividend declared for the period.
Zimplats accessed borrowings of US$4.5m during the half year and closed the period with cash and cash equivalents of $41.4m .
The development and upgrade of Mupani Mine which will replace Ngwarati, Rukodzi and part of Mupfuti mines that are depleting “remains on schedule, with full production of 3.6 million tonnes per annum planned” for the first half of 2029.
Zimplats has spend a cumulative $339m as at 31 December 2024 against an approved project budget of $386m on Mupani mine development.
BUSINESS REPORT