Zimplats sees marginal movement in mining volumes in QJune

The report also stated that milled volumes increased by 3% year on year due to higher milling rates achieved, which was consistent with increased mining volumes, while milled volumes decreased by 1% from the previous quarter due to a planned mill reline shutdown at the Selous Metallurgical Complex (SMC) concentrator.

Concentrator recoveries decreased 1% year on year and quarter on quarter due to lower mill feed grades obtained. As a result of the milled volumes and mill feed grade attained, 6E in concentrate output remained constant year on year while decreasing 3% quarter on quarter.

6E metal in final product decreased by 4% year-on-year and 5% from the prior quarter.

Zimplats said that cost-cutting efforts implemented during the quarter produced considerable results, with overall operational cash costs lowered by 4% compared to the previous quarter and the same period last year.

This improvement was driven by a number of factors, including the processing of previously stored ore, which added a minor US$0.3 million to operating expenses. In addition, cash costs linked with metal production fell 5% year on year and 6% quarter on quarter. As a result, the operational cash cost per 6E ounce decreased by 1% year on year and quarter on quarter, owing principally to the successful implementation of cost-saving efforts.

Due to persistently low metal prices, Zimplats was cautious in its exploration during the quarter. In lieu of new drilling campaigns, the business concentrated its efforts on analysing existing core samples and improving its geology and mineral resource modelling. This data-driven strategy sought to improve resource awareness and planning for future development, while also preserving capital in the face of difficult market conditions.

Zimplats is moving forward with capital projects to ensure long-term production and operational efficiency. The Bimha and Mupani mine development and improvement projects are on schedule to replace depleted mines while maintaining output. To date, US$407 million has been invested in these activities, indicating strong progress towards the overall budget of $468 million.

Concurrently, the smelter expansion and SO2 abatement plant project has spent US$387 million of its US$544 million budget. The 35MW solar project, which is nearing completion with US$36 million out of a US$37 million budget, is scheduled to begin operations in the first quarter of the next fiscal year. Finally, the Base Metal Refinery renovation project has received an investment of US$28 million out of a total budget of US$190 million.