Zimplats, Zimbabwe’s largest Platinum Group Metals (PGM) producer, recorded an 8% revenue increase for the financial year ending June 30, 2025, as stronger PGM prices offset weaker production, Mining Zimbabwe can report.
By Ryan Chigoche
Revenue rose to US$826.6 million, up from US$767.1 million a year earlier, supported by a 13% increase in PGM prices.
This price rally lifted gross revenue per 6E ounce sold to US$1 349, compared to US$1 196 in FY2024, cushioning the impact of a 4% decline in sales volumes, which fell to 613 336 ounces from 641 265 ounces.
While revenue showed growth, Zimplats faced inflationary pressures. Cost of sales climbed 5% to US$720.3 million (FY2024: US$684.7 million), reflecting higher expenses from the expanded smelter operations.
The increase was partly offset by lower production and sales volumes, limiting the overall cost impact.
Despite rising costs, profitability strengthened significantly. Profit before tax nearly doubled to US$66.4 million from US$37.6 million.
After accounting for a US$25.9 million tax expense, mostly deferred due to capital expenditure, profit after tax surged almost fivefold to US$40.5 million from US$8.2 million in FY2024.
Free cash flow, however, was constrained by weaker sales volumes, while US$39 million in debt was raised during the year.
The company closed FY2025 with a stronger cash position of US$99.3 million, up from US$78.1 million in the prior year.
Output Under Pressure
While the financial performance was strong, production volumes told a different story. Mined ore fell 2% to 7.7 million tonnes (FY2024: 7.9 million), mainly due to limited availability of trackless mobile equipment at underground mines.
To mitigate the shortfall, Zimplats launched a short-term open-pit programme. The South Pit, commissioned in January 2025, contributed 3% of total ore volumes.
At the same time, 6E head grade improved 1% to 3.37 g/t, aided by grade-boosting initiatives across mining portals and higher contributions from flats at Mupani Mine, helping to offset lower-grade open-cast ore.
Ngwarati Mine, which had ceased production in June 2024 due to depletion, resumed pillar reclamation in April 2025, supported by fleets redeployed from Rukodzi Mine during its ramp-down.
Despite these measures, output at Mupfuti and Bimha fell 13% and 6%, respectively, due to equipment shortages, while Mupani Mine saw a 36% production increase in line with planned fleet expansion.
Ore milled dropped 6% to 7.4 million tonnes, reflecting the lower mined volumes.
On a positive note, the expanded smelter and the first phase of the SO₂ abatement plant were commissioned during the year, enhancing Zimplats’ processing capacity.
