Defold Mine (Private) Limited’s financial performance deteriorated sharply in 2025, with the consolidated Group moving from a ZWG$541.9 million profit before tax in 2024 to a ZWG$258.7 million loss, as weaker diamond prices and a four-month suspension of diamond sales weighed heavily on earnings, Mining Zimbabwe can report.
By Rudairo Mapuranga
The figures were presented as part of Defold’s combined Annual General Meeting, which considered the company’s audited financial statements and performance for the 2023, 2024 and 2025 financial years in one sitting, providing shareholders with a three-year view of the Group’s financial and institutional transformation.
The Group’s revenue declined marginally by 2.0% to ZWG$2.223 billion in 2025, from ZWG$2.270 billion in the prior year. However, the modest revenue decline masked a much steeper deterioration in profitability, with gross profit plunging 84.3% from ZWG$627.4 million to ZWG$98.8 million.
Operating performance also weakened significantly, with an operating profit of ZWG$114.6 million recorded in 2024 turning into an operating loss of ZWG$364.3 million in 2025.
The Group attributed the difficult year to depressed diamond prices, weaker commodity markets and the suspension of diamond sales between June and September 2025 following an impasse over a marketing contract.
The deterioration extended to the bottom line, with the Group recording a loss before tax of ZWG$258.7 million, compared with a profit before tax of ZWG$541.9 million in 2024. Total comprehensive loss for the year amounted to ZWG$458.5 million.
Despite the weaker financial performance, total assets increased by 27.8% to ZWG$2.142 billion, reflecting continued investment in the Group’s asset base.
Liquidity, however, came under pressure. Cash and cash equivalents fell 26.6% to ZWG$82.1 million at the end of 2025, from ZWG$111.8 million a year earlier.
The Group ended the year with current assets of approximately ZWG$1.27 billion against current liabilities of about ZWG$1.91 billion, resulting in a working-capital deficit of roughly ZWG$644 million. Accumulated losses stood at ZWG$2.13 billion.
The 2025 independent auditor’s report contained an adverse opinion and separately highlighted a material uncertainty relating to the Group’s ability to continue as a going concern.
Management said it was responding through tighter cost controls, accelerated recovery of receivables and measures to manage creditor obligations. No dividend was declared for 2025 following the Group’s loss-making performance.
The Group nevertheless remitted ZWG$152.2 million in taxes to the Government during the year.
The 2025 results came against the backdrop of a broader institutional transition at Defold, following the movement of the company from the Ministry of Mines and Mining Development into the Mutapa Investment Fund (MIF) portfolio.
Board Chairman Onesimo Mazai Moyo described the review period as a transition from governance consolidation towards strategic transformation, with greater emphasis on performance management and value creation.
According to the Group’s reports presented at the AGM, the period also saw the completion of historical audits, the commissioning of Phase I of the Kamativi Mining Company lithium processing plant and efforts to align the Group’s mandate with the country’s National Development Strategy 1 and Vision 2030.
The three financial years also span Zimbabwe’s major currency transition. The 2023 financial year was reported in Zimbabwe dollars (ZWL), while the 2024 and 2025 financial years were reported in Zimbabwe Gold (ZWG), making direct nominal comparisons between 2023 and subsequent years inappropriate without considering the applicable accounting treatment and currency changes.
In 2023, the Group reported ZWL$976.37 billion in revenue and an operating profit of ZWL$230.84 billion, but recorded a loss after tax of ZWL$223.97 billion. Exchange losses of ZWL$1.05 trillion and finance charges of ZWL$22.16 billion were significant contributors to the loss.
The Group subsequently reported a profit before tax of ZWG$541.9 million and profit after tax of ZWG$389.45 million in 2024, before the sharp reversal recorded in 2025.
Acting General Manager Wilfred Tanyanyiwa said the immediate focus was on restoring sustainable profitability and supporting the shareholder’s Mining Cluster restructuring strategy.
Management plans to improve cash generation from existing investments, strengthen oversight of subsidiaries and move towards commodity-specific mining verticals.
The combined AGM gave shareholders a view of a three-year period in which Defold underwent significant institutional and monetary changes before facing renewed financial pressure in 2025, with the Group now focused on restoring profitability and strengthening its underlying businesses.
