RioZim Limited Sees 13% Rise in Gold Production Amid Power Supply Improvements and Exchange Rate Volatility

Published On: December 15, 2023Company: RioZim Limited (RIOZ.zw)
What significant steps did RioZim take in response to power supply issues and its impact on its operations?
RioZim responded to power supply challenges by investing in back-up generators across all its mines. Anticipating rainy season-induced power problems, the company initiated a refurbishment project to improve its overall operations. Despite the short-term reduction in processing capacity due to these measures, RioZim embarked on an optimization and process improvement drive to enhance plant recoveries.

Summary

  • A notable improvement occurred in power supply due to ZETDC’s additional capacity at Hwange. This rise in power supply uplifted gold production by 13% to 307kg, from 272kg in the comparative quarter of the previous year.
  • Exchange rate volatility continued to cause price distortions in production inputs resulting in inflation of the Group’s cost base and causing profitability pressure.
  • Cam & Motor Mine presented a 14% increase in gold production, driven primarily by increased milling throughput due to significant capital expenditure interventions on the crushing plant. The Dalny Mine, however, stayed under full care and maintenance during this period.
  • Renco Mine production rose by 12% fueled by improved power supply, enabling an upscaling in milling throughput and near-optimal plant availability.
  • The Empress Nickel Refinery (ENR) also remained under care and maintenance throughout the quarter.
  • On the other hand, RZM Murowa, the Diamond Business unit, saw a 12% reduction in diamond production due to plant breakdowns on heavy mobile equipment.
  • RioZim anticipates an exacerbation in power challenges with the upcoming rainy season, which has led the firm to invest in back-up generators across its mines. However, these come with high production costs attributing to significantly increased fuel consumption.
  • The Company has launched a refurbishment project on one of the ball mills at Cam & Motor Mine, which may reduce the processing capacity in the short term, but aims to improve operations overall.
  • Finally, the Group has embarked on an optimisation and improvement plan to enhance plant recoveries.

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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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