The Zimplats Holdings Ltd (ASX: ZIM) share price is in focus today after the company reported a 56% quarterly drop in 6E metal production and a 29% rise in cash costs per ounce.
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What did Zimplats report?
- Mined volumes: 2.09 million tonnes, down 1% from last quarter, up 17% year-on-year
- 6E metal in final product: 76,340 ounces, down 56% from last quarter, down 46% year-on-year
- Operating cash cost per 6E ounce: US$1,299, up 29% from last quarter, up 27% year-on-year
- Total operating costs: US$166.2 million, down 2% from last quarter, up 22% year-on-year
- Concentrator throughput: 1.93 million tonnes milled, down 6% from last quarter, up 15% year-on-year
- No dividend announced for the quarter
What else do investors need to know?
Zimplats recorded one lost-time injury for the March quarter, with corrective actions implemented as part of their zero-harm focus. Lower mining and milling volumes were mainly due to fewer operating days and planned maintenance shutdowns at the mills.
Final 6E metal production dropped sharply due to maintenance work on the smelter, but concentrate stocks have built up and are expected to be processed by the end of FY2026. Meanwhile, operating costs climbed year-on-year on higher open-pit activity, increased export fees, and rising labour and maintenance expenses.
What's next for Zimplats?
Key development projects are progressing as planned, including the Mupani mine expansion towards its 2029 production target, smelter and solar power upgrades, and continued tailings storage improvements. The company aims to process the accumulated concentrate, supporting higher metal output later in the year.
Zimplats maintains its focus on safety and boosting efficiency. Completion of major projects like the solar expansion and smelter upgrade is expected to support more stable production and cost control in coming years.
Zimplats share price snapshot
Over the past 12 months, Zimplats shares have risen 39%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 8% over the same period.
