RioZim produced 213kg of gold in the first half of 2026 and swung to a ZiG1.30 billion (about US$48.6 million) net profit, marking a sharp recovery from last year’s production disruptions as the miner brought its key operations back online, Mining Zimbabwe can report.
By Ryan Chigoche
The profit compares with a ZiG300.65 million loss in the same period last year, while revenue increased more than tenfold to ZiG299.90 million from ZiG21.64 million, supported by higher gold production and an average realised gold price of US$4,689 an ounce.
The turnaround was driven by the restart of Renco and the resumption of production at Cam & Motor, although the bottom line was also significantly boosted by accounting gains and balance-sheet restructuring.
Renco produced 92kg of gold in the first quarter after restarting operations under Chinese contractor FeiFan Mining, while Cam & Motor resumed production in June following the completion of pit dewatering.
RioZim said it was also advancing open-pit trials and heap-leaching projects at Renco to support near-term production, while a second mill at Cam & Motor is being installed and is expected to be commissioned before year-end.
Operating profit rose to ZiG1.05 billion from a ZiG351.37 million loss a year earlier. However, the reported net profit included a ZiG935.85 million write-off of an associate loan and a ZiG303.70 million gain from the disposal of RioZim’s 22.2% stake in RZM Murowa.
The Murowa disposal generated ZiG600.51 million in proceeds and was part of RioZim’s strategy to reduce borrowings. Total liabilities fell to ZiG3 billion at June 30 from ZiG4.26 billion at the end of 2025, while the group’s equity deficit narrowed to ZiG258.43 million from ZiG1.56 billion.
Despite the improved financial position, RioZim remains under pressure to fund its operations. Current liabilities exceeded current assets by ZiG1.23 billion, with auditors continuing to flag a material uncertainty over the group’s ability to remain a going concern.
The balance-sheet pressures add significance to RioZim’s plan to sell Renco for US$35 million, which would provide an immediate source of cash for debt reduction and working capital.
The proposed disposal, however, would come as Renco is returning to production and RioZim is developing additional open-pit and heap-leach capacity at the mine. A completed sale would therefore improve liquidity but remove a producing gold asset from the group just as its operations are recovering.
That would leave Cam & Motor, where the second mill is due to come on stream before year-end, carrying a greater share of RioZim’s future production base.
The first-half results show that RioZim can restore production when capital and operational support are available. The proposed Renco disposal will determine whether the company uses the recovery to rebuild around a smaller, less leveraged asset base or retains one of its key sources of gold output.
