Zimplats (ZIM) H2 2025 earnings summary

Executive summary

• Achieved key milestones in a challenging environment, including commissioning of the 38MW Smelter Expansion and 35MW Solar Power Plant, part of a US$1.8bn strategic investment plan.

• Mining production decreased by 3% to 7.7Mt, and 6E metal production fell by 6% to 606,343oz year-over-year.

• Revenue rose 8% to US$827m, driven by a 13% increase in gross revenue per 6E ounce, despite a 4% decline in sales volumes.

• Profit before tax increased 74% to US$66m, while net cash from operations decreased 40% to US$127.2m.

• No fatalities recorded, but safety performance deteriorated with 13 LTIs (vs. 3 prior year).

Financial highlights

• Revenue: US$826.6m, up 8% year-over-year (FY2024: US$767.1m).

• Gross profit: US$106.3m, up 29% (FY2024: US$82.4m); gross margin improved to 13% from 11%.

• Profit after tax: US$40.5m, up from US$8.2m in FY2024.

• Operating costs per 6E oz rose 8% to US$898 (FY2024: US$829).

• Net cash from operations: US$127.2m, down from US$212.5m in FY2024.

• No dividends declared; focus on capital projects.

Outlook and guidance

• Focus on improving safety, progressing mine replacement projects, and implementing Phase 2 (45MW) of the solar project.

• Ongoing efforts to maximize smelter capacity utilization and monitor SO₂ emissions for compliance.

• FY2026 objectives include achieving a target LTIFR of 0.25, water recycling of 63%, and extending pillar reclamation.