Zimplats (ZIM) H1 2025 earnings summary

Executive summary

• Revenue declined 6% year-over-year to US$350.2 million, mainly due to a 13% drop in sales volumes, partially offset by an 8% increase in average metal prices.

• Profit after tax was US$4.1 million, a turnaround from a US$8.8 million loss in the prior year period.

• No interim dividend was declared for the half year; a final dividend of 92.90 US cents per share was paid in September 2023.

• Net cash inflow from operating activities was US$59.9 million, down from US$70.1 million year-over-year.

Financial highlights

• Gross profit fell to US$26.8 million from US$30.8 million year-over-year.

• Cost of sales decreased 6% to US$323.4 million, but unit costs rose 7% to US$885 per 6E ounce produced.

• Net tangible assets per share increased 4% to US$19.16.

• Cash and cash equivalents at period end were US$41.4 million, down from US$71.9 million a year earlier.

• Basic/diluted EPS was 4 cents, compared to a loss of 8 cents per share in the prior year.

Outlook and guidance

• Focus remains on safety, operational excellence, and resilience amid low PGM prices.

• Commissioning of the solar plant and expanded smelter operations positions the group for sustainable growth.