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Karo Mining Holdings Plc, the VFEX-listed investment company developing the Karo Platinum Project in the Great Dyke, reduced its consolidated loss in the year ended 30 September 2025, reflecting firmer platinum prices and a stabilisation of activity at a project that has faced years of weak markets and funding delays, Mining Zimbabwe reports.
By Ryan Chigoche
The group reported a loss of US$2.17 million, down from US$2.50 million in the previous year.
Although Karo remains pre-revenue and in a capital-intensive development phase, the improvement points to easing pressure after a prolonged downturn in platinum group metals that had constrained progress.
Karo holds an 85% stake in the project, with the remaining 15% owned by the Government of Zimbabwe through Generation Minerals on a free-carry basis following amendments to the Investment Framework Agreement.
The asset sits on the Great Dyke, one of the world’s most significant platinum-bearing geological formations.
The improvement follows a difficult period for the PGM market. In 2024, the average six-element basket price had fallen to around US$1,302 per ounce, weakening project economics and delaying financial close.
Construction activity was scaled back as funding discussions continued, with the impact visible in ongoing development costs and recurring losses.
Market conditions improved markedly in 2025, with the basket price rising to about US$1,882 per ounce.
The recovery was supported by tighter supply, improved industrial demand, renewed investor interest in precious metals, and persistent production challenges in South Africa.
The firmer price environment improved the project’s funding outlook and allowed construction momentum to stabilise.
This shift is reflected in the financials. Finance income rose to US$815,000 from US$329,000, mainly from interest on funds advanced to the project.
The increase helped offset higher operating expenses linked to ongoing development work and contributed to the narrower loss.
Capital investment continued to rise during the year. Property, plant and equipment increased to US$174.2 million from US$140.9 million, driven largely by capitalised mine development costs.
At the same time, liquidity remained under pressure, with cash and cash equivalents falling to US$5.6 million from US$12.4 million, while net cash used in investing activities approached US$80 million.
Funding continues to rely heavily on shareholder support, led by majority shareholder Tharisa Plc.
Total borrowings stood at about US$38 million at year-end, largely made up of VFEX-listed bonds guaranteed by Tharisa and related-party facilities.
The bonds, originally due to mature in November 2025, were extended to December 2028 following bondholder approval, with the coupon increased to 11%, reflecting tighter credit conditions and the project’s development risk.
Construction at the Karo site began in 2022 after several years of feasibility studies and permitting.
The project is planned as a fully integrated operation, including underground mining, concentrators, smelting, and refining facilities, supported by dedicated power and water infrastructure.
Capital and working capital requirements to first ore in the mill are estimated at US$499 million, making it one of the largest mining investments in Zimbabwe.
With platinum demand increasingly supported by industrial uses and emerging applications such as hydrogen technologies, and with supply constraints persisting in key producing regions, the market backdrop has improved from the 2023–2024 trough.
Karo is targeting financial close in 2026, which would unlock the next phase of construction and keep the first ore in the mill on track for around mid-2027.
While the FY2025 results do not signal a turnaround, the reduced loss suggests the worst of the downcycle may be over for the project. After years of delays driven by weak prices and funding constraints, Karo Platinum is once again moving forward under more supportive market conditions.
