RioZim Achieves 1% Production Increase Despite Major Shareholder Death
Zimbabwe Stock Exchange-listed diversified mining company RioZim, despite the loss of the company’s major shareholder’s representatives and four executives in a fatal plane crash, recorded a 1 per cent increase in gold production during the year ended 31 December 2023.
In a statement released on Tuesday, 14 May 2024, Chairman S.R. Beebeejaun noted that the year began on a positive note, with an upward review of the foreign currency retention from 60% to 75%, which was a welcome boost to the group as this partially alleviated the foreign currency shortages. The increased nostro retention was complemented by favourable gold prices that experienced an upward trend from the beginning of the year, contributing to the revenue growth for the year.
The RioZim chairman, however, said that the period was characterized by rising production costs driven by inconsistent power supply and spiralling exchange rates, which persisted throughout the year. As a result, the group recorded a net loss for the year.
“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 involving one of RZM Murowa Aviation’s planes. This unfortunate accident cast a dark cloud over the 2023 financial year for the company, and we continue to mourn these dear departed colleagues.
“Production for the year was 940 kg, which was a slight 1% increase from the prior year’s production of 928 kg. The subdued production volumes were due to persistent plant breakdowns largely experienced at Cam & Motor Mine, which struggled with breakdowns in its milling section resulting in reduced throughput,” Beebeejaun said.
According to Beebeejaun, Renco Mine adopted a strategy of maximizing milled throughput, resulting in a commendable 10% increase in production to 441 kg. Despite power supply challenges, investments in additional generator capacity are underway to mitigate production obstacles.
He said Cam & Motor Mine faced setbacks due to mill section breakdowns, leading to a 5% decline in production to 499 kg. Efforts to refurbish mills and address delayed pit development are ongoing.
Dalny Mine remained under care and maintenance, focusing on regulatory approvals for small-scale operations to alleviate cash flow impacts.
Base Metals Business
The refinery, under care and maintenance, contributed revenue partially funding its costs. Efforts are directed towards revitalizing the oxygen generation section to generate additional income.
Chrome Business
Legal disputes concerning chrome claims in Darwendale persist, with the company committed to pursuing an amicable resolution.
Diamond Business
Production at RZM Murowa declined by 3% to 414,000 carats, attributed to suspended mining activities. Despite challenges, the group remains dedicated to finding solutions.
Energy Business
Energy projects, notably the 178 MW Solar Projects, are in the funding stage after obtaining regulatory approvals. Engagement with potential funding partners is ongoing to achieve financial closure.
Outlook
RioZim remains optimistic about stabilizing production and returning to profitability through strategic initiatives. Efforts at RZM Murowa focus on extending the life of the mine, while Cam & Motor Mine prioritizes improving plant uptime. Addressing power supply challenges at Renco Mine is imperative, with a focus on alternative sources and capacity expansion. Despite adversities, RioZim’s future looks promising as initiatives are set to stabilize production and drive profitability.
This article first appeared in the Mining Zimbabwe Magazine Edition 73