Rising expenses, slower output challenge Zimplats’ quarterly performance

HARARE – Zimplats’ financial and production performance in the first quarter of 2025 highlighted increased costs alongside reduced output.

Total operating cash costs rose by 3% year-on-year to US$136.75 million, mainly driven by higher power expenses related to operating a new 38MW smelter, the resumption of open-pit mining, and timing differences in replacing major engineering components. Despite these cost increases, the company’s operating cash costs decreased by 2% from the previous quarter, benefitting from lower variable costs associated with decreased mined and milled volumes.

Zimplats reported an increase in its cash costs of metal produced, which rose by 6% year-on-year to US$143.19 million, compared to US$135.86 million in the December quarter.

In terms of production, mined ore volumes declined by 11% year-on-year and 4% from the previous quarter, largely due to equipment availability issues. Milled ore volumes also fell significantly—by 17% year-on-year and 8% quarter-on-quarter—leading to lower concentrate and metal production. As a result, the total 6E metal in final product decreased by 16% year-on-year to 139,506 ounces, from 165,511 ounces in the prior comparable quarter. Final metal production was further impacted by ongoing optimization of the 38MW furnace. Silver production remained steady at approximately 12,388 ounces, unchanged from the prior quarter.

Despite operational challenges, Zimplats continued investing in growth projects, including the development of the Mupani Mine, smelter expansion, and SO₂ abatement facilities. Exploration activities persisted at similar levels, supporting future growth. While rising costs and lower volumes affected short-term performance, Zimplats remains committed to managing expenses and advancing its strategic projects to ensure long-term sustainability.-finx