Zimplats reports decline in revenue and profits amid challenging conditions

HARARE – Zimplats, a leading platinum mining company, has reported a 20% decline in revenue to US$767.1 million for the financial year ended June 30, 2024, compared to US$962.3 million in the previous year.

The decline was attributed to softer average US dollar metal prices during the period.

Despite a 6% increase in sales volumes to 641,000 ounces, gross revenue per ounce sold decreased by 20% to US$1,196. Cost of sales increased by 5% to US$684.7 million, primarily due to increased production and sales volumes, as well as a higher depreciation charge.

“Notable production gains were achieved across the operation with a 6% and 20% increase in volumes mined at Bimha and Mupani mines respectively as these operations ramped up to design capacity.

“Volumes at Mupfuti Mine declined by 4% in the period negatively impacted by trackless mining machinery availability.

“Production from Ngwarati Mine reduced by 20%, as the mine’s primary operations were depleted with operations ceasing in June 2024. The pillar reclamation at Rukodzi Mine contributed 5% of total ore mined in FY2024, whilst ground conditions remained stable,” the company said.

Operating unit cash costs decreased by 1% to US$829 per ounce, benefiting from cost containment initiatives. Gross profit margins were, however, negatively impacted by lower revenue and contracted to 11% from 32% in the previous year.

Profit before tax declined to US$37.6 million from US$286.8 million in the previous year, while profit after tax fell to US$8.2 million from US$205.5 million.

Zimplats said it continued to implement international best practices and standards at all operations and has retained certification to Environmental Management System ISO14001: 2015, Occupational Health and Safety ISO45001:2018, and Quality Management System ISO9001:2015.

The company further said it has made significant progress in reducing its environmental footprint, with a notable 60% decrease in CO2 emissions per tonne of ore milled.

Zimplats said the construction of a 35MW solar plant was also underway, with the first phase expected to be completed in the first quarter of FY2025.