RioZim Limited Reports Net Loss Despite Increased Gold Production from BIOX Plant

Published On: October 9, 2023Company: RioZim Limited (RIOZ.zw)
What was the significant driver of RioZim Group's increased gold production in the first half of the year?
The significant driver of the increased gold production was the introduction of the BIOX Plant at the Cam & Motor mine, which led to increased volumes.

Introduction

  • RioZim Group experienced a challenging first half of the year due to acute power cuts and foreign currency challenges. However, production output increased due to the BIOX Plant at Cam & Motor mine and the 500 TPH Plant at RZM Murowa.
  • The Government’s upward review of the USD nostro retention partially cushioned the Group.
  • The Group closed the period in a net loss position due to the high cost of production and incessant power cuts, despite attempts to grow output.

Group Performance

  • Gold production increased by 6%, from 393kg to 417kg, driven by increased volumes at the Cam & Motor mine as a result of the BIOX Plant.
  • Revenue increased significantly from ZW$4.76 billion to ZW$49.96 billion as a result of increased gold output and exchange rate variations.
  • The Group experienced a net loss of ZW$8.7 billion due to a high cost base.

Gold Business

  • Renco mine’s gold production grew by 11%, from 174kg to 194kg.
  • Dalny mine was under maintenance throughout the period and its future is dependent on substantial investment.
  • Cam & Motor mine saw a 6% production increase to 223kg due to the BIOX Plant.

Base Metals Business

  • The Empress Nickel Refinery was under care and maintenance throughout the period.

Chrome Business

  • No changes occurred concerning the Company’s chrome claims in Darwendale as a court case is still pending.

Diamond Business

  • RZM Murowa recorded an 84% increase in production from 115,000 carats to 212,000 carats due to a recently installed 500 TPD Plant.

Directorate

  • CEO Manit M. Shah resigned and was replaced by Rajgopal Swami.
  • Atish Mangal was appointed as the Chief Finance Officer.
  • Grant R. Flanagan and Ajay P. Shanghavi were appointed as Non-Executive Directors, while Gopal K. Jain resigned.

Dividends

  • No dividends were declared for the period.

Useful links

About RioZim Limited (RIOZ.zw)

RioZim is an integrated mining and metallurgical company in Zimbabwe with an extensive portfolio of resources in gold, base metals, diamonds, coal and chrome. It mining operations include Renco Gold Mine in Masvingo Province, and Cam & Motor Gold Mine and Empress Nickel Refinery; both in the Mashonaland West Province. RioZim also has interests in Sengwa Colliery (Private) Limited with coal assets in Gokwe North; Murowa Diamonds (Private) Limited with operations in Zvishavane; and Marnatha ferrochrome refinery in Kadoma. RioZim separated from its parent company, Rio Tinto plc, in 2004 to become a wholly-owned Zimbabwean company. Its subsidiaries include RioGold (Private) Limited, RioZim Base Metals (Private) Limited and RioDiamonds (Private) Limited. RioZim Group Limited is listed on the Zimbabwe Stock Exchange

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