HARARE – Embattled Zimbabwe Stock Exchange-listed miner RioZim Limited has said that the first half of 2025 was one of the most challenging periods in its recent history, marked by sharply reduced production across its mining operations and deep financial losses.
The company is, however, now charting a recovery path following a major restructuring exercise and a successful post-period capital injection.
In a statement accompanying its reviewed interim financial results for the six months ended 30 June 2025, chairman Caleb Dengu said the group’s operational difficulties stemmed from persistent undercapitalisation over the past three years, which limited its ability to sustain production and invest in key infrastructure.
“The first half of 2025 proved to be a particularly challenging period for the Group, marked by significantly reduced production across our mining operations,” Dengu said.
“However, the comprehensive restructuring exercise initiated by the new Board appointed in July 2025 has already yielded tangible results.
Among the early signs of recovery, Renco Mine has since been reopened, safeguarding over 1,000 jobs, while efforts to fully restore Cam and Motor Mine operations are progressing, with full production expected before year-end.
During the review period, RioZim recorded a net loss of ZWG300.6 million, widening from a ZWG165.7 million loss in the same period last year, despite benefiting from a strong average gold price of US$3,075 per ounce, up from US$2,165/oz in 2024.
The group attributed the loss to minimal production activity as it focused on capital-raising efforts.
Dengu noted that by the end of the reporting period, RioZim was in “advanced negotiations” with a strategic investor, a deal that has since been concluded, resulting in the injection of much-needed funding after June 2025.
RioZim’s associate, RZM Private Limited (Murowa Diamonds), was also affected by weak global diamond prices, which reduced both profitability and cash flows. The associate posted a share of loss of ZWG28 million, compared to a share of profit of ZWG5.6 million in the prior period.
Murowa has, however, begun in-pit mining activities following an extensive exploration programme aimed at improving ore grades. The initiative is expected to enhance carat output and strengthen profitability going forward.
Following the closure of its capital-raising transaction, RioZim said its operations have begun to stabilise. Renco Mine resumed production in September 2025 and is on track to reach optimal output by year-end, while Cam & Motor Mine refurbishment is also progressing.
The company expects the international gold price to remain elevated, supporting its return to profitability, while Murowa’s operational shift should lift both the quantity and quality of diamond production.
During the period under review, Mustafa Sachak resigned from the Board after a decade of service. The Board expressed gratitude for his contribution and leadership.
Given the group’s financial constraints and ongoing recovery efforts, no dividend was declared for the half-year period.
In its independent review report dated 30 October 2025, auditors Forvis Mazars issued an unmodified review conclusion but drew attention to material uncertainties related to the group’s ability to continue as a going concern.
As at 30 June 2025, RioZim’s current liabilities exceeded current assets by ZWG2.9 billion, and total liabilities surpassed total assets by ZWG1.2 billion. The group also had accumulated losses of ZWG1.2 billion.
Mazars further noted a pending court application seeking to place the company under corporate rescue proceedings, with the outcome and potential impact on operations still uncertain.
“These conditions indicate a material uncertainty that may cast significant doubt on the Group’s ability to continue as a going concern,” the auditor stated.
However, Chairman Dengu affirmed his hope for the company’s recovery saying: “Together we are on the path to recovery and renewed growth.”
