The country’s biggest platinum group metals producer, Zimplats Holdings Limited, has reported a staggering turnaround in its financial performance for the half-year ended 31 December 2025, with after-tax profit surging to US$143.7 million, a dramatic increase of 3,376% from the US$4.1 million recorded in the same period last year, Mining Zimbabwe can report.
By Rudairo Mapuranga
The results underscore the miner’s sensitivity to global commodity prices and highlight the ongoing currency challenges facing businesses in Zimbabwe.
According to the Group’s Appendix 4D and interim financial statements released in February 2026, the revenue surge was the primary driver of the bottom-line growth.
Revenue for the period jumped 83% to US$641.8 million (H1 FY2025: US$350.2 million).
The impressive financial result was underpinned by solid operational performance. Milled volumes increased by 5% to 4.0 million tonnes, while mined volumes rose 8% to 4.2 million tonnes, benefiting from improved machinery availability and the resuscitation of open-pit operations.
Total 6E (platinum, palladium, rhodium, gold, ruthenium, iridium) production in concentrate increased by 13% to 316,765 ounces. Sales volumes of 6E metals followed suit, rising 10% to 308,598 ounces.
| Metal | H1 2025 Production | H1 2024 Production | Variance |
|---|---|---|---|
| 6E (oz) | 316,765 | 279,890 | +13% |
| Platinum (oz) | 146,507 | 130,772 | +12% |
| Palladium (oz) | 123,762 | 108,011 | +15% |
| Nickel (t) | 3,068 | 2,655 | +16% |
While production and sales volumes grew by a healthy 10–13%, revenue grew by a staggering 83%. The discrepancy is explained by a sharp recovery in PGM prices.
The company’s financial review explicitly states that the revenue jump was driven by a 66% increase in average metal prices. The gross revenue per 6E ounce sold soared to US$2,080, up from just US$1,252 in the first half of the 2025 financial year.
This price leverage flowed directly to the bottom line. Profit before tax came in at US$203.4 million, compared to just US$8.9 million in the prior comparable period. The Group’s income tax expense naturally followed suit, rising to US$59.7 million from US$4.7 million.
Cost of sales increased by 31% to US$425.0 million, driven by labour, higher equipment maintenance, and increased royalty payments—the latter rising in tandem with the higher revenue.
For stakeholders in Zimbabwe, Zimplats’ financials continue to reveal the complexities of operating in a multi-currency environment with the Zimbabwean dollar (ZWG).
The report highlights that while the Group presents its accounts in US dollars, it holds significant exposure to the local currency. As of 31 December 2025, the Group held ZWG balances worth US$97.98 million (up from US$68.8 million in June 2025).
More critically, the Group disclosed that US$78.1 million of its cash position is held by the Reserve Bank of Zimbabwe (RBZ) in a “deferred liquidation account.” This is a result of the country’s export retention regime, where exporters must surrender a portion of foreign currency earnings to the central bank in exchange for ZWG at the interbank rate. The company notes that “tight monetary and fiscal policy measures” have led to “intermittent releases of local currency,” resulting in the accumulation of these ZWG balances. This remains a significant liquidity and translation risk for the miner.
To manage local working capital needs, the Group continues to utilize short-term ZWG facilities, despite their high cost. The company extended a ZWG135 million (approx. US$5 million) loan facility with FBC Crown Bank at an interest rate of 45% per annum and fully settled a similar facility with Ecobank.
Despite the currency headwinds, Zimplats continues to invest heavily in its long-term future. Capital expenditure for the half-year was US$91.1 million.
Mupani Mine: The project to replace aging mines is on schedule, with US$360 million spent against a US$386 million budget. Full capacity of 3.6 million tonnes per annum is expected in H1 FY2029.
Smelter Expansion & SO₂ Abatement: Technically complete, with cumulative spending of US$466 million against a US$544 million budget. The new furnace will significantly expand processing capacity.
Solar Plant (Phase 2A): Following the commissioning of the 35MW solar plant, the Group has begun work on a 45MW expansion. The US$54 million project is expected to be completed in H1 FY2027, with US$24 million spent to date.
With a strengthened balance sheet—cash and cash equivalents closed at US$145.7 million, up from US$99.3 million in June 2025—Zimplats is well-positioned to continue its capital programs.
CEO Alex Mhembere struck an optimistic tone in the report, citing improved PGM prices and operational excellence. However, the economic reality for the miner remains a delicate balance: leveraging strong USD commodity prices to fund growth while navigating the liquidity and inflationary pressures of the ZWG from its domestic operations.
