Zimplats, Zimbabwe’s largest platinum producer, reported a significant drop in annual post-tax profits, plummeting from US$205.5 million in June 2023 to just US$8.2 million this year. The decline is attributed to falling metal prices, which forced the company to halt some projects last year. Despite these challenges, Zimplats is pressing ahead with key initiatives aimed at securing future growth.
During the year to June, Zimplats invested US$440 million in critical projects, a 45% increase from the previous year’s spending. These ongoing projects include the replacement of older mines, the construction of a solar plant, and the expansion of processing capabilities.
Although Zimplats increased its sales volumes by 6% to 641,000 ounces of platinum group metals (PGMs) and saw a 5% rise in mined volumes, these gains were offset by declining prices. As a result, revenue dropped from US$962.3 million in June 2023 to US$767.1 million this year. The company’s profit before tax fell sharply to US$37.6 million, down from US$286.8 million last year, with profit after tax sinking to US$8.2 million.
Despite the financial setbacks, Zimplats is moving forward with significant projects. The company has invested US$387 million in expanding its smelter and sulphur dioxide abatement plant, which includes a new 38MW furnace. This expansion is set to significantly boost Zimplats’ smelting capacity, with commissioning expected in the first half of the 2025 financial year.
Additionally, Zimplats has nearly completed a 35MW solar plant, with an investment of US$36 million against a budget of US$37 million. The plant is scheduled for commissioning in the first quarter of the 2025 financial year. The company has also allocated US$28 million out of a budgeted US$190 million to refurbish the mothballed base metal refinery at Selous.
