Zimplats PGM Output Drops Sharply in Q4 Amid Power Disruptions

Zimplats PGM

Zimbabwe’s largest platinum group metals (PGMs) producer, Zimplats, experienced a significant drop in production during the October–December quarter. The company reported a 21% year-on-year decline in total 6E PGM output, totaling 129,536 ounces. This decrease affected all six metals in the group: platinum, palladium, rhodium, iridium, ruthenium, and osmium.

Platinum and Palladium Production See Major Declines

Platinum output dropped by 19% to 60,720 oz, while palladium production fell by 21% to 49,820 oz. Rhodium output decreased by 15%, totaling 5,301 oz. The company also saw a 30% decline in ruthenium output and a 31% drop in iridium production. Power supply interruptions across mining operations led to an 8% decrease in ore mined and milled volumes.

Rising Costs Add Pressure to Zimplats' Margins

In addition to lower production, Zimplats faced rising operational costs. Power prices contributed to a 3% year-on-year increase in operating expenses. As the largest PGM producer in Zimbabwe, Zimplats’ performance often reflects broader trends in the country's mining sector. This downturn underscores the critical impact of energy stability on metal output.

Given Zimbabwe’s strategic role in global PGM supply, disruptions at Zimplats could influence short-term price movements in the international market. Analysts will closely monitor the company’s performance in the upcoming quarters, especially in relation to power reliability and cost controls.