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RioZim Diamonds Production Down 4%

RioZim Diamonds Production Down 4%

RIOZIM

RZM Murowa, a subsidiary of RioZim has recorded a 4% drop in output in the half-year ended June 30, 2021, due to technicalities associated with the migration of mining activities.

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The mining group produced 564 kg of gold for six months, which was a 4% decline from the same period prior year’s production of 586 kg.

The depressed production was mainly attributable to the rain-induced power outages and plant breakdowns experienced in the first quarter of 2021 which stifled plant throughput across the Group’s mines.

Presenting the group’s half-year results, RioZim chairperson Saleem Beebeejaun said the lowered production also prompted the widening of losses.

“The group’s associate produced 240 000 carats for the six-month period, representing a 4% decline from the comparative period’s 250 000 carats,” he said.

“The low production volumes are a result of processing low-grade ore from the K2 pit throughout the period after migration of mining.”

Although no figures were provided, RZM Murowa revealed they sold more diamonds during the period despite the depressed output. Their share of profit from the associate rose to $252,9 million from the prior period’s share of loss of $5,3 million.

It added that its Crown Jewel project which seeks to boost the plant processing capacity to sustain its operations pit is progressing well despite challenges and delays being experienced as a result of the COVID-19.

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Gold prices have remained relatively consistent with the same period prior year prices and averaged US$1 777/oz, a 4% increase against US$1 713/oz.

“Revenue generated during the period was $2,6 billion in comparison to $616,4 million in the same period the prior year. The marked increase in revenue was a direct result of the depreciation of the local currency against the United States dollar.

“Resultantly, the lower production achieved led to a loss of $1,5 billion compared to the same period prior year’s loss of $77,4 million,” Beebeejaun said.

He added that going forward, the company will be focusing on the completion and commissioning of its BIOX Plant Project before the close of the financial year as the project remains a key priority for the group.

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