Zimplats (ZIM) Q2 2025 TU earnings summary

Executive summary

• Milled volumes declined 6% year-over-year and 8% quarter-on-quarter, with mined volumes down 7% and 8% respectively.

• 6E metal in final product fell 21% year-over-year and 14% quarter-on-quarter, reflecting operational challenges.

• Five lost-time injuries were recorded, with safety measures being reinforced.

Financial highlights

• Total operating cash costs rose 3% year-over-year and quarter-on-quarter, mainly due to higher power costs and timing of major engineering replacements.

• Operating cash cost per 6E ounce increased 13% year-over-year and 11% quarter-on-quarter to US$935, driven by lower production volumes.

• Cash costs of metal produced decreased 10% year-over-year and 4% quarter-on-quarter due to inventory build-up ahead of smelter commissioning.

Segment performance

• Mining volumes were impacted by poor mobile machinery availability and power interruptions; Ngwarati Mine's closure was offset by increased output from Rukodzi and Mupani mines.

• 6E head grade improved 1% year-over-year, aided by higher-grade ore from Rukodzi and Mupani.

• Smelter expansion led to improved concentrator recoveries (up 1% year-over-year, 4% quarter-on-quarter), but concentrate volumes were down 5% year-over-year and 4% quarter-on-quarter.

• By quarter-end, 30,600 ounces of 6E accumulated in inventory, with 21,500 ounces to be processed in H2 FY2025.