Zimplats Invests $850M in Capital Projects.
Zimplats, Zimbabwe's leading platinum producer, has invested $850 million in capital projects as part of its $1.157 billion capital expenditure plan. The company shared this update in its quarterly report for the period ending December 31, 2024.
The projects include the $386 million Mupani Mine development, which is replacing the depleted Rukodzi and Ngwarati mines, and a $544 million expansion and sulfur dioxide abatement plant project. Zimplats has also spent $32 million so far on the $190 million Base Metal Refinery refurbishment.
Mupani Mine is on schedule to reach its full production capacity of 3.6 million tonnes per year in early 2029. The company has already spent $339 million on this project.
The 35 MW solar plant, completed in August 2023 at a cost of $37 million, is now operating at its designed generation capacity.
Due to low global metal prices, Zimplats reduced its exploration activities in the last quarter and focused on analyzing existing data and updating geological models.
Mined volumes decreased by 7% year-on-year and 8% quarter-on-quarter because of limited equipment availability and power outages. However, higher output from other mines compensated for the closure of Ngwarati Mine in June 2024.
Milled volumes also declined by 6% year-on-year and 8% from the previous quarter due to lower ore supply and mill shutdowns. The expanded smelter improved smelting capacity and concentrator mass pull, leading to better concentrator recoveries.
Total 6E concentrate volumes of 158,803 ounces were 5% lower than the previous year and 4% lower than the preceding quarter.
Operating cash costs increased by 3% due to higher power costs and the timing of major component replacements. The company transferred $18.5 million of operating costs to closing stocks, primarily due to the buildup of stocks before commissioning the expanded smelting and converting capacity.
As a result, the cash cost of metal produced decreased by 10% year-on-year and 4% quarter-on-quarter. However, operating cash costs per ounce rose by 13% year-on-year and 11% quarter-on-quarter to $935 because of lower production volumes.
Zimplats, Zimbabwe's leading platinum producer, has invested $850 million in capital projects as part of its $1.157 billion capital expenditure plan. The company shared this update in its quarterly report for the period ending December 31, 2024.
The projects include the $386 million Mupani Mine development, which is replacing the depleted Rukodzi and Ngwarati mines, and a $544 million expansion and sulfur dioxide abatement plant project. Zimplats has also spent $32 million so far on the $190 million Base Metal Refinery refurbishment.
Mupani Mine is on schedule to reach its full production capacity of 3.6 million tonnes per year in early 2029. The company has already spent $339 million on this project.
The 35 MW solar plant, completed in August 2023 at a cost of $37 million, is now operating at its designed generation capacity.
Due to low global metal prices, Zimplats reduced its exploration activities in the last quarter and focused on analyzing existing data and updating geological models.
Mined volumes decreased by 7% year-on-year and 8% quarter-on-quarter because of limited equipment availability and power outages. However, higher output from other mines compensated for the closure of Ngwarati Mine in June 2024.
Milled volumes also declined by 6% year-on-year and 8% from the previous quarter due to lower ore supply and mill shutdowns. The expanded smelter improved smelting capacity and concentrator mass pull, leading to better concentrator recoveries.
Total 6E concentrate volumes of 158,803 ounces were 5% lower than the previous year and 4% lower than the preceding quarter.
Operating cash costs increased by 3% due to higher power costs and the timing of major component replacements. The company transferred $18.5 million of operating costs to closing stocks, primarily due to the buildup of stocks before commissioning the expanded smelting and converting capacity.
As a result, the cash cost of metal produced decreased by 10% year-on-year and 4% quarter-on-quarter. However, operating cash costs per ounce rose by 13% year-on-year and 11% quarter-on-quarter to $935 because of lower production volumes.
