Yesterday afternoon, Zimplats Holdings Ltd (ASX: ZIM) announced a strong quarterly report, highlighting a 22% jump in 6E metal in final product and a 6% reduction in cash operating costs per ounce compared to the prior quarter.
Image source: Getty Images
What did Zimplats report?
- Ore mined rose 5% quarter-on-quarter and 15% year-on-year to 2,124,000 tonnes.
- Ore milled increased by 3% from the previous quarter and 12% on the prior comparable period.
- 6E metal in final product jumped 22% quarter-on-quarter to 174,229 ounces, up 35% year-on-year.
- Operating cash cost per 6E ounce fell 6% from the previous quarter to US$1,009, but was 8% higher year-on-year.
- Total operating cash costs increased by 4% to US$170 million compared to the prior quarter.
- Two lost-time injuries were recorded during the quarter.
What else do investors need to know?
The improvement in mined and milled volumes was supported by better underground equipment reliability and higher open pit output. 6E head grade was steady compared to the last quarter, but fell 3% from a year ago due to changes in ore sources.
Major capital projects are progressing well, including the Mupani mine development, which is on track for full-scale production by FY2029, and the smelter expansion where cumulative spending has reached US$466 million. Zimplats also advanced its solar generation project, aiming for 80MW capacity by mid-2027.
What's next for Zimplats?
Looking ahead, Zimplats plans to maintain its focus on safety improvements and operational efficiency. Continued investment in growth projects, like the Mupani mine and expanded renewable energy, positions the company well for long-term production growth and cost management.
Management has also highlighted strong progress on expanding its tailings storage and base metal refining capabilities, supporting future operational stability. Investors may want to watch for updated guidance and further project milestones in the coming quarters.
Zimplats share price snapshot
Over the past 12 months, Zimplats shares have risen 91%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.
