RioZim Holdings Limited, a diversified Zimbabwean mining company producing gold and coal as well as refining nickel and copper, reported a net loss for the year ended December 31, 2023.
This follows a year marred by the tragic loss of company executives and major shareholders in a plane crash involving a RioZim Murowa Aviation aircraft in September 2023.
“The Group’s financial year was marked by the sad loss of the Company’s major shareholder’s representatives, and four of the Company’s executives in a fatal plane crash,” said RioZim Chairman Saleem Rashid Beebeejaun.
“This unfortunate accident cast a dark cloud on the 2023 financial year for the Company and we continue to mourn these dear departed colleagues.”
On September 29, 2023, a tragic plane crash occurred in the Zvamahande area of Mashava, Masvingo province, Zimbabwe.
The aircraft, a Cessna 206 with registration Z-CAM, was owned by Rio Zimbabwe Company and was en route from Harare to Murowa Diamonds in Zvishavane.
There were six individuals on board, including the pilot, Reginald Muchemwa, and five passengers: Harpal Randhawa an Indian billionaire and owner of RioZim and his son Amer Randhawa, George Sibanda, Nikhil Mahadik Milind, and Pichumoney Viswanath.
Preliminary investigations suggest that the plane may have experienced a technical fault before crashing. The incident is currently under investigation to determine the exact cause of the crash.
Despite a positive start to the year with an increased nostro retention and favorable gold prices, RioZim’s financial performance was ultimately impacted by a challenging operating environment.
“Production for the year was 940kg, which was a slight 1% increase from prior year production,” the statement said. “The subdued production volumes were due to persistent plant breakdowns largely experienced at Cam & Motor Mine.”
While Renco Mine saw a 10% increase in gold production due to its “low grade-high volume strategy,” power supply issues continued to hinder operations.
Cam & Motor Mine’s production fell by 5% due to frequent mill breakdowns. Dalny Mine remained under care and maintenance for the year.
The company’s diamond business and associate RZM Murowa (Private) Limited also faced challenges. Production declined by 3% due to processing of pre-mined stockpiles and inhomogeneous stockpiles resulting in lower carats achieved.
“The Group recorded a share of loss from the associate of ZWL5.4 billion in contrast to the share of profit of ZWL102.1 million in the prior year due to the reduced carats in the current year,” the statement said.
However, RioZim is looking towards the future with planned interventions to improve production and profitability.
“Our stakeholders will be kept informed of any notable developments” regarding the company’s 178 MW Solar Projects which are currently at the funding stage, Beebeejaun said.
