Zimplats 6E production increases

Zimplats says 6E metal in the final product increased by 16 percent in the quarter to December 31, 2022. In the prior quarter it was 15 percent higher year-on-year.

In an update, the PGM producer said the growth in production reflects the benefit of higher concentrator volumes and the impact of inventory accumulation during the scheduled furnace reline in the prior quarter.

Mined volumes increased by 1 percent from the prior quarter and was 14 percent higher year-on-year, with strong operational performances across the mines during the period under review.

The group said mined volumes in the quarter were adversely impacted by production disruptions at Mupfuti Mine during a changeover of the trackless mining equipment service provider.

Group’s ore milled increased by 13 percent from the prior quarter to 1,95 million tonnes.

“Milled volumes benefitted from higher installed capacity following the commissioning of the Ngezi third concentrator plant in September 2022. The plant achieved nameplate capacity in the period under review,” said Zimplats.

During the quarter under review, 6E head grade decreased by 2 percent from the prior quarter and was 1 percent lower year-on-year.

The company said this was due to increased contribution of lower grade development ore from the Mupani Mine stockpile.

Total operating cash costs for the period increased by 13 percent from the prior quarter, due primarily to higher production volumes, inflationary pressures and a 42 percent increase in the power tariff.

Zimplats said a total of US$4,5 million was transferred from operating costs as milled throughput exceeded mined volumes and some concentrate inventory accumulated during the prior quarter was smelted in the period.

“This resulted in the gross cost of metal produced increasing by 21 percent compared to the prior quarter. 6E unit costs increased by 5 percent to US$839/oz from US$801/oz in the prior quarter and were 15 percent higher year-on-year,” read part of the statement.

Zimplats said US$1,4 million was spent on exploration projects, with a further US$4,7 million committed as at 31 December 2022.

The exploration activities included mineral resource evaluation, comprising approximately 7 968 metres of surface diamond drilling on mining lease ML 36.

The group noted that development of Mupani Mine and the upgrade of Bimha Mine to replace Rukodzi which was depleted in FY2022, Ngwarati, and Mupfuti mines, which will be depleted in FY2025 and FY2028 respectively, progressed well during the quarter.

A total of US$274,6 million has been spent on the project to date and US$71,9 million has been committed against a project budget of US$468 million.

The Ngezi third concentrator plant, which will increase milling capacity by 0,9 million tonnes per year equivalent to circa 80 000 6E ounces was commissioned in September 2022.

“Cumulative project expenditure as at the end of the quarter amounted to US$97,1 million, with US$5,8 million committed against a project budget of US$104,1 million.-ebusinessweekly