Unki Output Falls on Lower Grades as Valterra Delivers Strong Q1 Production and Sales Growth
Valterra Platinum reported a softer quarter at its Zimbabwean Unki Mine, where output declined on lower grades, even as the group delivered a broader recovery in production, refined volumes, and sales, Mining Zimbabwe can report.
By Ryan Chigoche
Unki’s platinum group metals (PGM) production fell 4% year-on-year to 51,700 ounces in the three months to March, reflecting the planned mining of lower-grade ore as part of normal mine sequencing.
That decline stands in contrast to the group’s overall performance, with total PGM production, measured as 5E+Au metal-in-concentrate, rising 7% to 743,500 ounces, supported by both stronger own-mined output and increased third-party concentrate purchases.
Within this, own-mined production increased 5% to 486,200 ounces, anchored by a strong recovery at Amandelbult, where output surged 43% to 122,800 ounces following flood-related disruptions in early 2025.
However, gains at Amandelbult were partly offset elsewhere. Mogalakwena’s production declined 6% to 212,300 ounces after the company brought forward High Pressure Grinding Rolls (HPGR) maintenance, while also blending lower-grade stockpiles. At the same time, Unki’s lower-grade ore profile weighed on its quarterly output.
Elsewhere in the portfolio, Mototolo recorded a modest 3% increase in production to 68,200 ounces, supported by improved mining performance, although grades were affected by dilution linked to the ongoing ramp-up of the Der Brochen project. Modikwa also contributed positively, with output rising 6% to 31,200 ounces.
In addition to own-mined output, the group saw a 10% increase in purchased concentrate volumes to 257,300 ounces, reflecting improved performance from third-party suppliers and adding further support to overall production.
The stronger production base, together with operational adjustments in processing, translated into a sharp increase in refined output, which rose 78% to 778,500 ounces. This was aided by the decision to shift planned maintenance and stock counts from the first to the third quarter, allowing for more consistent plant utilisation and lower electricity costs.
As a result, sales volumes moved in tandem with production, climbing 60% to 791,400 ounces, supported by higher refined output and a marginal drawdown of inventory.
At the same time, pricing provided an additional boost. The average realised basket price rose to R47,529 per ounce, or $2,911—the highest level since the second quarter of 2021—representing year-on-year increases of 70% in rand terms and 90% in dollar terms.
Although prices softened later in the quarter amid broader market corrections and rising geopolitical tensions, gains remained intact, with quarter-on-quarter increases of 23% in rand terms and 28% in dollar terms.
Beyond PGMs, the improved operating environment was also reflected in by-product output. Nickel production rose 41% to 5,880 tonnes, while copper increased 26% to 3,845 tonnes, both benefiting from the rephasing of maintenance. Chrome production also climbed 56% to 283,000 tonnes, supported by improved recoveries and the stabilisation of Amandelbult operations.
Despite the stronger operational showing, the quarter was overshadowed by a fatal incident at Mototolo in March, ending a 13-year fatality-free period at the operation. The company said investigations are underway, alongside efforts to reinforce safety systems and accountability across its operations.
Against this backdrop, Valterra left its 2026 guidance unchanged, targeting 3.0–3.4 million ounces of PGM production. Cash operating costs are expected to remain between R19,000 and R20,000 per ounce, with all-in sustaining costs guided at around $1,050 per 3E ounce, although the company flagged ongoing geopolitical tensions as a potential risk to input costs.
For Unki, the weaker quarter reflects grade-driven variability rather than operational disruption, with output expected to track mine plans over the remainder of the year as the group continues to prioritise stability and efficiency across its portfolio.
