The Zimbabwe Diamond and Allied Minerals Workers Union (ZDAMWU) has launched a renewed push to place RioZim under corporate rescue, armed with a devastating auditor’s opinion that warns of “material uncertainty” over the gold miner’s survival, including the real prospect of future financial statements being prepared on a liquidation basis, Mining Zimbabwe can report.
By Ryan Chigoche
The union’s latest court bid, filed before the High Court on 11 June 2026 under case HCHC282/26, comes after earlier efforts to force rescue proceedings were squashed. This time, ZDAMWU says the audit opinion leaves no room for doubt.
In an affidavit sworn by Secretary-General Justice Chinhema, the union confirmed it received notice of the rescue proceedings on 12 May and now supports the application, both as a creditor and on behalf of members fighting to save jobs.
The affidavit states that ZDAMWU has “a substantial and legitimate interest” in RioZim’s future, as a successful rescue would preserve jobs, “widely regarded as one of the many economic and social benefits” of the process.
Auditor’s Warning: Liquidation Basis Possible
The union’s renewed push is anchored squarely on the audited financial statements for the year ended 31 December 2025. Auditors said conditions exist that “may cast significant doubt on the Group and the Company’s ability to continue as a going concern”.
More starkly, the audit report warned: “Should the going concern basis no longer be appropriate, adjustments would have to be made … on a liquidation basis.” ZDAMWU calls this “an extraordinary step in the Company’s operating history”.
The financial statements were published more than 90 days late, breaching listing rules, with no explanation provided for the delay—a red flag the union says further undermines confidence.
Technical Insolvency Laid Bare
Auditor’s Note 33 reveals RioZim’s financial collapse. For the year ended 31 December 2025:
• Net loss widened to ZWG 739 million from ZWG 628 million.
• Current liabilities exceeded current assets by ZWG 2.93 billion.
• Total liabilities exceeded total assets by ZWG 1.56 billion, indicating technical insolvency.
• Accumulated losses ballooned to ZWG 1.67 billion, nearly double the 2024 figure of ZWG 944 million.
Production Collapse, Borrowing Lifeline
Operational deterioration is equally alarming. Gold production plunged 80%, from 428kg to just 84kg during the year. The union notes that output of roughly 7kg per month “is insufficient to cover operating costs”.
The group recorded a gross loss of ZWG 61 million before operating expenses, meaning the cost of sales already exceeds revenue. The cash flow statement shows operations are being sustained only through borrowings, with ZWG 457 million in loan inflows and financing costs of ZWG 66 million. There is no fresh shareholder capital and no indication of profitable or sustainable trading.
Other Red Flags
Auditors also flagged subjective impairment assessments of property, plant and equipment; significant judgments relating to exploration and deferred tax assets; revenue recognition distortions in third-party mining arrangements; and pending litigation from multiple parties that could affect financial stability.
The union warns that substantial deferred assets may need to be impaired or written off if future economic benefits become unlikely.
A Second Chance for Rescue?
With earlier efforts to force corporate rescue having been dismissed, ZDAMWU is now banking on the auditor’s explicit going concern warning to persuade the High Court.
The union argues that, without corporate rescue supervision, the only alternative is a disorderly liquidation that would destroy jobs and leave creditors unpaid.
The court will now determine RioZim’s fate under case HCHC282/26.
