ASX-listed Zimplats has posted a profit of $170-million for the six months ended December 31, which is lower than the profit of $250-million posted for the six months ended December 31, 2020.

Zimplats declared an interim dividend of $1.11 apiece, or $85-million in dividends.

The company says its ore mining volumes in the half-year period reduced by 5% to 3.5-million tonnes, owing to production disruptions at the Mupfuti platinum mine during a changeover of a trackless mining equipment service provider, which has since been completed.

Platinum, palladium, rhodium, ruthenium, osmium and gold production decreased by 2% from 288 310 oz in the prior comparable period to 283 829 oz in the reporting six months.

Particularly, platinum output totalled 129 895 oz (2% lower year-on-year), palladium output 110 637 oz (3% lower year-on-year), gold output 15 947 oz (flat compared with the prior period), rhodium output 11 694 oz (1% lower year-on-year), ruthenium output 10 741 oz (1% higher year-on-year) and iridium output 4 915 oz (2% lower year-on-year).

Silver output amounted to 24 092 oz (5% higher year-on-year), nickel to 2 559 t (11% higher year-on-year), copper to 1 933 t (6% higher year-on-year) and cobalt to 30 t (8% higher year-on-year).

Meanwhile, Zimplats has completed the redevelopment of the Bimha mine within budget at $99-million. An upgrade process is under way to achieve production of 3.1-million tonnes a year, by the first quarter of the 2024 financial year.

The upgrade of the Mupani mine is on schedule, with earthworks for the dome and load-out station complete and decline development progressing on plan.

The Mupani mine targets production of 2.2-million tonnes a year starting in August 2025 and increasing its capability to 3.6-million tonnes a year by August 2027. A total $166-million has been spent on this project so far.

Zimplats says a bankable feasibility study for the refurbishment of the mothballed base metal refinery at Selous Metallurgical Complex, which has an approved project budget of $6.8-million, is on track for completion by the end of the current financial year.

CEO Alex Mhembere says the 2022 financial year has brought with it several challenges and opportunities for the group. The operating environment was characterised by declining metal prices, high US dollar inflation, devaluation of the Zimbabwean dollar and a fourth Covid-19 wave.

“The group managed to go through the first six months of the year without any Covid-19-induced interruptions. We anticipate a sustainably good operating environment and continued enforcement of Covid-19 protocols which will ensure that the group will safely meet its targets.”

Zimplats, through its majority-owned operating subsidiary in Zimbabwe, operates five underground mines and a refinery complex in the country.