Zimplats (ZIM) H2 2024 earnings summary

Executive summary

• Revenue declined 20% to $767.1M for FY2024 due to softer US dollar metal prices, despite a 6% increase in sales volumes to 641,000 6E ounces.

• Profit before tax dropped 87% to $37.6M and profit after tax fell 96% to $8.2M year-over-year.

• Free cash generation was negatively impacted by weaker PGM pricing and higher capital expenditure; closing cash position was $78.1M, down from $253.6M.

• Board declared a final dividend of $100M (92.9 US cents/share) for FY2023, paid in September 2023.

Financial highlights

• Gross profit margin contracted to 11% from 32% year-over-year.

• Operating unit cash costs decreased 1% to $829 per 6E ounce.

• Net tangible asset per share was $16.62, down 5% from $17.47.

• Dividends paid per share decreased 55% to 93 US cents.

• Foreign exchange losses increased to $35.8M, mainly due to ZWL depreciation.

Outlook and guidance

• Mupani Mine scheduled to achieve 2.2Mtpa production in FY2025, replacing depleted mines; design capacity of 3.6Mtpa targeted for FY2029.

• Expanded smelter commissioning set for H1 FY2025, increasing capacity to over 1M 6E ounces per annum.

• 35MW solar plant to be commissioned in Q1 FY2025, with total solar generation to reach 185MW in subsequent phases.