Shares in Zimplats Holdings Ltd (ASX: ZIM) have surged back into the spotlight.
The ASX miner's share price is up roughly 75% in 2025, including a 25% jump over the past month, as platinum prices rebound sharply from last year's lows.
With momentum returning to the platinum market, is Zimplats now worth buying after this strong rally?
Let's break it down.
Platinum prices have turned a corner
The biggest driver behind Zimplats' recent rally has been the turnaround in platinum prices.
After a difficult period in 2024, platinum has rebounded strongly into early 2026. Prices are now trading above US$2,100 per ounce, supported by tighter supply conditions and renewed investor interest in precious metals.
Supply constraints in South Africa remain a major factor. Ongoing power issues, rising costs, and operational disruptions have limited output across the region, helping to tighten the global market.
At the same time, demand has held up better than expected. Platinum is used mainly in car exhaust systems to reduce emissions and in various industrial products. Investor interest in precious metals has also increased as commodity prices rise.
What Zimplats reported in its latest update
In its most recent quarterly activities report, Zimplats highlighted steady operational performance across its Zimbabwe mines.
Mining and processing volumes were similar to the previous quarter, although metal output dipped slightly due to lower ore quality. Overall, production remained close to expectations.
Costs, however, moved higher. Cash costs per ounce rose by about 30% compared with the previous quarter, mainly due to higher labour, power and input costs. The company said it is continuing to focus on cost control to manage these pressures.
Despite higher costs, Zimplats remains in a strong financial position. The company reported a net cash balance, meaning it has more cash than debt on its balance sheet.
Is Zimplats a buy?
Zimplats gives investors direct exposure to a recovering platinum price and operates long life mines with existing infrastructure.
However, after a 75% rise in 2025, much of the short-term optimism may already be priced in. Investors need to be comfortable with ups and downs in platinum prices and the risks of operating mines in Zimbabwe.
Higher costs and changes in metal prices remain key risks to watch over the year ahead.
While the longer-term outlook for platinum is improving, I would prefer to watch Zimplats for now rather than buy at current levels. A pullback in the share price could offer a more attractive entry point.
