Zimplats Holdings reported 6E metal in final product of 138,844 ounces in the September 2026 quarter, down 35% from the prior quarter and 3% year-on-year. This decline was primarily attributable to a planned 60-day furnace ring maintenance that commenced on 1 September, with operations scheduled to resume by end-October. The company is stockpiling concentrate produced during the shutdown, with inventory reaching 43,000 6E ounces at quarter-end. Management has flagged that accumulated concentrate inventory will be smelted during the remainder of FY2027, limiting the duration of production impact.
Underlying mining and milling dynamics suggest operational stability despite the furnace pause. Mined volumes declined 5% quarter-on-quarter following closure of South Pit operations but were only 1% lower year-on-year, with the 6E head grade remaining stable at 3.30 ounces per tonne both sequentially and annually. Milled volumes fell 4% from the prior quarter due to a planned mill reline shutdown at the Selous Metallurgical Complex, yet improved 2% year-on-year as ore availability strengthened. The company reported zero lost-time injuries during the quarter, continuing its zero-harm safety agenda.
Operating cash costs per 6E ounce decreased marginally by 1% sequentially to US$1,119 per ounce but rose 5% year-on-year, reflecting increased US dollar equivalent costs for South African rand-denominated consumables following rand appreciation. Total operating costs fell 16% quarter-on-quarter due to lower power consumption during furnace maintenance and reduced engineering expenditure. Management has attributed the year-on-year cost increase primarily to currency effects.
Zimplats’ major capital projects continue to progress within budget. The Mupani Mine development has reached US$368 million in cumulative expenditure against a US$386 million budget, advancing toward 3.6 million tonnes per annum capacity by FY2029. The smelter expansion and SO2 abatement project has spent US$480 million against a US$544 million budget. The 45MW Phase 2A solar project commenced commissioning after quarter-end, with completion targeted for the second quarter of FY2027, which will bring total solar capacity to 80MW.
The near-term catalyst for the stock is the furnace restart expected by end-October and subsequent processing of the 43,000 6E ounce concentrate inventory. Longer-term value drivers include the completion of the Mupani expansion and smelter upgrade, both material to production growth and cost reduction. This announcement is price-sensitive and has been flagged as material by the ASX.
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About Zimplats Holdings Limited (ASX: ZIM)
Zimplats Holdings Limited is a platinum group metals producer engaged in the extraction and processing of platinum, palladium, rhodium, iridium, and ruthenium from Zimbabwe’s Great Dyke geological formation. The company operates mining facilities in Ngezi and processing plants in both Ngezi and Selous, also producing nickel, gold, copper, cobalt, and silver as byproducts. It is a vertically integrated mining operation focused entirely on Zimbabwean operations.
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