The Zimplats Ltd (ASX: ZIM) share price is in focus today after the company delivered strong quarterly production growth, with 6E metal in final product up 179% from the previous quarter and operating cash costs per ounce down 13%.
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What did Zimplats report?
- Ore mined up 1% on the previous quarter, 4% year-on-year to 2,118,000 tonnes
- Milled volumes rose 9% versus the previous quarter and 6% year-on-year
- 6E metal in final product surged 179% quarter-on-quarter, up 14% year-on-year
- Operating cash costs per 6E ounce down 13% on the prior quarter but up 38% year-on-year
- Total operating cash costs increased 25% on Q3 and 51% year-on-year to US$207.3 million
- One lost-time injury recorded for the quarter
What else do investors need to know?
Production ramped up thanks to improved equipment availability and steady plant operations. The company processed built-up concentrate stocks following furnace maintenance earlier in the year, resulting in increased final metal output.
Major capital projects are progressing well. The Mupani Mine upgrade remains on track to reach full capacity by FY2029, and significant investments continued in smelter expansion and solar power generation. The first phase of the tailings storage facility project was technically completed within budget, securing exisiting operations through to 2049.
What's next for Zimplats?
Looking ahead, Zimplats is preparing for scheduled furnace maintenance in September and October 2026. This may lead to further inventory build-up, expected to be cleared by the end of the following quarter. Management says the company is focused on delivering its capital projects, with a keen eye on costs and sustainable operations in a dynamic commodities market.
Investors can also watch for continued progress on renewable energy initiatives, which aim to boost Zimplats' solar generation capacity to 80MW by FY2027.
Zimplats share price snapshot
Over the past 12 months, Zimplats shares have declined 13%, trailing the All Ordinaries Index (ASX: XAO), which has risen 2% over the same period.
