Zimplats (ZIM) Q1 2025 earnings summary

Executive summary

• Mined volumes rose 3% year-on-year and quarter-on-quarter, driven by Mupani Mine ramp-up and successful replacement of Ngwarati Mine output.

• 6E head grade improved 2% year-on-year and 3% sequentially, with higher-grade ore from Mupani.

• 6E metal in concentrate increased 1% year-on-year and 2% from the previous quarter; 6E metal in final product declined 9% year-on-year and 3% sequentially due to smelter commissioning.

• One lost-time injury recorded; safety recommendations are being implemented.

Financial highlights

• Total operating cash costs increased 6% from the prior quarter, impacted by higher mining production, currency effects, and timing of engineering replacements.

• Quarterly costs decreased 1% year-on-year due to cost-saving initiatives.

• Operating cash cost per 6E ounce was $841, up 1% year-on-year and 2% quarter-on-quarter, reflecting lower 6E metal production.

• Cash costs of metal produced decreased 1% quarter-on-quarter and 8% year-on-year.

• $8.6 million transferred to closing stocks due to concentrate stockpiling for smelter commissioning.

Outlook and guidance

• Exploration activities remain limited due to depressed metal prices, focusing on geological model updates.

• Mupani Mine development on schedule for full production in H1 FY2029; Bimha Mine upgrade completed.