Zimplats (ZIM) H2 2024 earnings summary

Executive summary

• Achieved strong operational performance despite challenging macroeconomic conditions and subdued PGM prices, with a 6% increase in 6E metal production to 645,911 oz and a 6% rise in sales volumes to 641,264 oz year-over-year.

• Revenue declined 20% to US$767.1 million due to a 25% drop in gross revenue per 6E oz, while profit after tax fell 96% to US$8.2 million year-over-year.

• Capital expenditure rose 44% to US$439.5 million, advancing key projects including smelter expansion, SO₂ abatement, and solar power initiatives.

• Paid US$100 million in dividends, down from US$220 million in the prior year.

Financial highlights

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

• Operating cash costs per 6E oz improved by 1% to US$829.

• Net cash from operating activities decreased 54% to US$214.6 million.

• Cash balance at year-end was US$78.1 million, down from US$253.6 million.

• Return on equity dropped to 0% from 11% year-over-year.

Outlook and guidance

• Commissioning of the expanded smelter and first phase of the 185MW solar project (35MW) scheduled for H1 FY2025.

• Mupani Mine upgrade on track to reach 3.6Mtpa by H1 FY2029; Bimha Mine upgrade completed.

• Focus remains on safety, productivity, and cost optimization amid continued economic uncertainty.