Zimbabwe Stock Exchange-listed miner RioZim produced 940 kg of gold in 2023, marking a 1% increase despite facing significant operational challenges throughout the financial year.
By Ryan Chigoche
The company experienced a boost in revenue due to favourable gold prices and increased production. However, production was hindered by persistent plant breakdowns at the Cam & Motor Mine, leading to a 5% decrease in gold production. The Delny Mine, which has faced considerable operational difficulties, remained under care and maintenance during the reporting period, contributing to no production. The Delny Mine has struggled with ageing infrastructure and frequent equipment failures, exacerbating its operational issues and leading to a prolonged period of inactivity.
Significantly contributing to overall production was the Renco Mine, which saw a 10% surge in output. This improvement was attributed to the implementation of a “low grade-high volume” strategy, although inconsistent power supply continued to pose a challenge. To address this, RioZim’s energy project has reached the funding stage following previous regulatory approvals.
RioZim’s diamond business, operated through RZM Murowa, faced a challenging year. Production decreased by 3%, falling to 414,000 carats from 426,000 carats in 2022. Despite the decrease, Murowa remains a key asset for RioZim, known for its high-quality gem and industrial diamonds. The mine has been investing in technology upgrades to enhance efficiency and diamond recovery. Additionally, Murowa is exploring expansion opportunities to increase its resource base and extend its operational life. However, fluctuating global diamond prices and ongoing operational challenges have impacted performance.
The company also faced a disastrous accident at the beginning of the financial year, with the tragic loss of major shareholder representatives and four executives in a plane crash. This incident had a significant impact on RioZim’s financial performance, compounded by persistent plant breakdowns, fluctuating power supply, a turbulent macroeconomic environment, and unfavourable exchange rates.
Additionally, a legal dispute over the company’s chrome claims affected overall business operations. Despite these challenges, RioZim reported several positive aspects, including increased gold production and prices, and a rise in nostro retention from 60% to 75%, which helped alleviate foreign currency shortages.
While favourable gold prices and a slight increase in productivity contributed to a revenue increase, the company still closed the year in the red.
RioZim is an integrated mining and metallurgical company in Zimbabwe with an extensive portfolio of resources in gold, base metals, diamonds, coal, and chrome. Its mining operations include the Renco Gold Mine in Masvingo Province, and the Cam & Motor Gold Mine and Empress Nickel Refinery in Mashonaland West Province. RioZim also holds interests in Sengwa Colliery (Private) Limited with coal assets in Gokwe North, Murowa Diamonds (Private) Limited with operations in Zvishavane, and the Maranatha Ferrochrome Refinery in Kadoma.
The company separated from its parent company, Rio Tinto plc, in 2004 to become a wholly-owned Zimbabwean entity. Its subsidiaries include RioGold Limited, RioZim Base Metals Limited, and RioDiamonds Limited.
