Zimplats’ revenue dropped 20% year over year, from $962.3 million after the 2023 financial year to $767.1 million at the close of the 2024 financial year on June 30, due to the softening of average dollar metal prices.
The platinum miner said the gross revenue per six-element (6E) platinum group metal (PGM) ounce sold, which consists of the revaluation of pipeline debtors, also declined by 20%, dropping from $1,595 in the previous financial year to $1,196.
However, sales volumes grew by 6% to 640,000 oz of 6E PGMs over the period, a growth attributed to increased production compared to 603,000 oz in the 2023 financial year.
The cost of sales increased by 5% to $ 684.7 million, a jump from $ 651.9 million in the previous year. This increase was primarily due to improved production and sales volumes, as well as a higher depreciation charge.
Despite this, several cost-containment measures put in place during the period helped to moderate the overall increase.
Operating unit cash expenses fell marginally to $829/oz of 6E PGMs, a decrease from $836/oz in the previous year, due to these cost containment initiatives.
Furthermore, the Zimbabwean dollar's depreciation against the dollar, which decreased from Z$5 769 on June 30, 2023, to Z$33 904 on April 5, resulted in a $35.8 million increase in foreign exchange losses, compared to 17.2 million.
Zimbabwe introduced its new currency, the Zimbabwe Gold, or ZiG, on April 5.
Zimplats experienced a substantial decrease in profit before tax, which decreased from $286.8 million in the previous year to $37.6 million.
During the period, the poorer prevailing PGM price and the increased capital investment also hurt free cash creation. The company's ending cash position was $78.1 million, a decrease from $253.6 million after the 2023 financial year, as a result of raising $60 million in debt.
Meanwhile, Zimplats' operations increased its mined volumes by 5% in the 2024 financial year, resulting in a total of 7.9 million tonnes, an increase from the previous year's 7.6 million tonnes.
The replacement mines' increasing production quantities were the primary factor behind this expansion. Nevertheless, the mined grade, which was 3.33 g/t of 6E PGMs in the previous financial year, experienced a marginal decline to 3.32 g/t.
The traversal of geological features at other mines and an increase in lower-grade development tonnages from the Mupani mine were both blamed for this decline.
Production gains were substantial throughout the operation, notwithstanding a modest fall in mined grade.
Production at Bimha rose 6%, while Mupani mine experienced a substantial 20% increase as these operations began to reach their intended capacity.
Mathew Nyaungwa, Editor in Chief, Rough&Polished
