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Zimbabwe’s third-largest platinum group metals (PGMs) producer, Shurugwi-based Unki Mine, reported a one per cent reduction in cash operating costs to US$119 million for the six months ended 30 June 2025, successfully navigating a period of lower production and a favourable but volatile global market, Mining Zimbabwe can report.
By Rudairo Mapuranga
According to interim results released by its parent company, Valterra Platinum, this demonstration of cost discipline occurred against a backdrop of operational challenges, as metal-in-concentrate production saw a nine per cent decline to 107,500 PGM ounces, down from 117,500 ounces recorded in the first half of 2024.
The report showed that the production downturn was primarily attributed to a combination of lower ore grade and reduced plant recovery, with the latter also impacted by nationwide electricity supply disruptions that affected concentrator stability. However, the operation demonstrated resilience by partially offsetting these challenges with a one percent increase in tonnes milled, underscoring the mine’s continued focus on maintaining throughput volume.
According to the report, while the total cash operating costs were successfully pared down, the lower production volume had a direct impact on per-unit expenses. The US dollar unit cost witnessed a nine per cent increase to US$1,109 per PGM ounce, up from US$1,017 per PGM ounce in the first half of 2024. Similarly, the All-In Sustaining Cost (AISC), a key industry metric, also rose by nine per cent to US$1,020 per 3E ounce sold, compared to US$937 per 3E ounce in the prior period.
Despite these increases in per-ounce costs, the mine’s core earnings exhibited notable stability. Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) saw only a marginal decrease of two per cent, holding firm at R0.7 billion. Significantly, the mining EBITDA margin actually improved, climbing to 23 per cent from the 20 per cent reported in the first half of 2024. This improvement in profitability margin highlights the effective balance management struck between cost control and navigating lower production output.
According to Valterra Platinum CEO Craig Miller, the global PGM market provided a crucial counterbalance to Unki’s operational challenges. The realised PGM dollar basket price increased by 5% to US$1,517 per PGM ounce – its strongest level since the first half of 2023.
“The realised dollar basket price increased by 5% compared to the prior period to US$1,517 per PGM ounce – marking its strongest level since H1 2023.” The buoyant basket price was driven by robust performances across key metals, with the average realised platinum price rising by five per cent compared to H1 2024, while rhodium and ruthenium saw even more dramatic surges of 11 and 56 per cent, respectively.
This positive pricing environment aligns with broader global market trends, where platinum has experienced a notable resurgence, breaking above the US$1,250 per ounce threshold on the back of a significant structural deficit. The strong metal prices were instrumental in cushioning the impact of lower production volumes. Economic free cash flow for the period was reported at R0.1 billion, a decrease from the R0.5 billion generated in the first half of 2024, reflecting the capital intensity required to navigate the period’s challenges.
The first half of the year also represented a period of profound corporate transition for Unki’s parent company, which successfully completed its demerger from Anglo American Platinum and officially began trading as the independent entity, Valterra Platinum. This strategic move positions the company with a dedicated focus on its asset portfolio.
Looking forward, Unki Mine remains a cornerstone of Zimbabwe’s PGM sector and a key contributor to the nation’s position as the world’s second-largest platinum producer. The mine’s performance in this challenging half-year demonstrates a commitment to operational efficiency and strategic financial management. As it continues to navigate the current commodity cycle, its ability to control costs while leveraging stronger metal prices will be critical to its continued contribution to the national fiscus and the broader Zimbabwean economy.
