Zimplats Holdings Ltd

Iits most recent annual result (for FY25, the 12 months to June 30, 2025), the company reaped US$826m in revenue, a US$106.3m gross profit (up 29%) and a US$40.5m net profit (up from US$8.2m the year before). This was from 606,343/oz of 6E (Platinum, Palladium, rhodium, ruthenium, iridium and gold). The latter figure was an amount actually down 6% from the year before, but the company made a better return due to higher commodity prices. The company is in the right space given the importance of platinum and its siblings. Platinum, palladium and rhodium are critical in catalytic converters to reduce harmful emissions from petrol and diesel engines. But they offer exposure in direct ways too – platinum is a key catalyst in hydrogen fuel cells and electrolysers, positioning it as a strategic metal in decarbonisation and hydrogen economy applications. Iridium and ruthenium also have roles in next-generation catalysts and energy tech. Beyond demand dynamics, supply dynamics are favourable too (well, for investors anyway). Global PGM supply is concentrated in Southern Africa and Russia, with limited new investment in greenfield projects. Recent platinum price strength has reflected tightening markets, low above-ground stocks and rising recycling but not enough new supply to meet demand. Many analysts view this as a structural backdrop for the metal group over the medium term. Of course, cyclicality is inherent – prices can fall when automotive demand weakens or if supply increases. But the long-term role in emissions control and hydrogen technologies provides a structural underpinning.