Zimbabwe News and Internet Radio

RioZim profits dip

By Adelaide Moyo

RioZim says its profits declined 86 percent to $406 000 during the half year ended June 30, 2018 compared to $2,90 million in the previous period.

Murowa diamond mine complex
Murowa diamond mine complex

However, the group’s revenues increased to $44,4 million due to an 18 percent increase in gold sales’ volumes to 1 007kg from 852kg and a five percent increase in the gold selling price which averaged $1 298 per ounce from $1 238 per ounce recorded in the first half of 2017.

Lovemore Chihota, RioZim chairperson, said gold production was 20 percent up to 1 050 kg from 873kg in the comparative period.

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Cam and Motor Mine produced 458kg of gold, 36 percent higher than 361kg recorded in the comparative prior period.

“The mine’s performance was, however, weighed down by failing plant recoveries caused by an increase in refractory ore which cannot be effectively processed through the current traditional Carbon in Leach (CIL) process,” he said.

Chihota said the mine has installed a flotation plant which will be commissioned in the third quarter of the year.

Renco Mine gold production increased 14 percent to 360kg from 316kg in the comparative prior period.

“The plant operated optimally, sustaining its strong milling performance and only losing its running time to power outages which were experienced in the first quarter of the year,” Chihota said.

Dalny Mine gold production increased 18 percent to 232kg in the review period compared to 196kg as the mine continued to work towards discovering more pittable ore resources.

The Empress Nickel Refinery produced 369 tonnes of matte and 14,5 tonnes of copper anodes, generating $2,3 million of revenue.

Revenue at Murowa Diamonds increased 28 percent to $40,8 million in the review period compared to $32 million reported in the previous year.

Initiatives have been put in place to build the diamond mine’s capacity including rolling out a new mine plan and tripling the plant’s processing capacity.

RioZim is using a judicial process and is in communication with relevant authorities to regain control of its claims at the chrome mines.

The company had to contend with several cases of unauthorised mining at various parts of its chrome claims in during the quarter.

During the period under review, RioZim commissioned a flotation plant, aimed at enhancing recovery of gold and sulphide ores at Cam and Motor Mine.
The Financial Gazette