Smelter commissioning affects Zimplats final product
Zimplats says six-element (6E) metal in the final product in the quarter to September 30, 2024, declined 9 percent year-on-year and 3 percent from the prior quarter due to smelter commissioning.
The company, in a trading update for the quarter under review, said commissioning of the expanded smelter commenced during the period, with a total of 400 tonnes of concentrate fed into the new furnace by quarter-end.
“This, together with the accumulation of concentrate ahead of the smelter commissioning, resulted in a 9 percent year-on-year and 3 percent quarter-on-quarter decrease in metal in final product, with a circa 15 500-ounce differential between 6E in concentrate and 6E in final product for the quarter,” the company said.
During the quarter under review, group mined volumes increased by 3 percent both year-on-year and quarter-on-quarter, benefiting from the ramp-up in production at Mupani Mine.
Zimplats said production from Ngwarati Mine, which ceased primary operations in June 2024, was successfully replaced by a combination of the ramp-up in output from pillar reclamation at Rukodzi Mine and production from Mupani Mine.
“6E head grade improved by 2 percent year-on-year and 3 percent quarter-on-quarter, benefitting from increased tonnage from higher grade stopping areas at Mupani Mine,” reads the production update.
Milled volumes improved by 1 percent year-on-year due to a mill-reline shutdown completed in the prior comparable period, with a 1 percent decline versus the prior quarter.
“The 3 percent and 1 percent year-on-year and quarter-on-quarter decrease in concentrator recoveries was offset by higher mill feed grade, and 6E in concentrate production increased by 1 percent year-on-year and 2 percent quarter-on-quarter,” reads the update.
The group’s total operating cash costs increased by 6 percent from the prior quarter and were impacted by higher mining production, the strengthening of the South African rand, and timing differences on the replacement of major engineering components.
Quarterly costs decreased by 1 percent from the prior comparable period due to the implementation of cost-saving initiatives.
The company said transfers to closing stocks from operating costs for the quarter amounted to US$8.6 million due to concentrate stockpiled for the commissioning of the expanded smelter and inventory build-up in the bigger furnace.
Cash costs of metal produced decreased by 1 percent quarter-on-quarter and were 8 percent lower year-on-year.
During the period under review, operating cash cost per 6E ounce, of US$841, was 1 percent and 2 percent higher year-on-year and quarter-on-quarter, respectively, due to the impact on fixed costs of lower 6E metal production.
In terms of capital projects under execution, Zimplats said the development of Mupani Mine, which replaces the depleted Rukodzi and Ngwarati mines, is progressing well and remains on schedule, with full production of 3.6 million metric tonnes per annum planned for H1 FY2029.
The Bimha Mine upgrade, to partly replace tonnage from Mupfuti Mine on depletion in FY2029, was completed in FY2024 with its design capacity successfully increased from 2.0 million metric tonnes to 3.1 million metric tonnes per annum.
“Cumulatively, US$413 million has been spent on these projects as of September 30, 2024, against a total project budget of US$468 million.
“A total of US$412 million has been spent on the smelter expansion and carbon oxide (SO2) abatement plant project against a total project budget of US$544 million.
The company said US$36 million has been spent on the 35 MW solar plant project against a budget of US$37 million, and the solar plant was commissioned at the end of August 2024 and is currently ramping up power generation to design capacity.
A total of US$29 million has been spent on the Base Metal Refinery refurbishment project, against a total budget of US$190 million-ebsinesweekl
