RioZim gold output dips
Gold production at diversified resources group RioZim Limited was depressed during the first quarter to March 31, 2022 due to a myriad of challenges, including flooding.
The group said in a trading update for the quarter, there was no gold production at Dalny mine throughout the period as the mine suffered from poor ground conditions and flooding of its pits, which rendered mining activities insurmountable.
The mine is scheduled to resume operations in the second quarter after dewatering of the pits.
Its flagship, Cam & Motor Mine gold production went down 34 percent compared to the same quarter last year as the group halted operations to pave the way for the testing and commissioning of its biological oxidation plant (BIOX).
“The mine focused on the completion and testing of its Biological Oxidation (BIOX) Plant to bring it to commissioning stage.
As a result, the mine suspended mining activities from its nearby OneStep mine to pave the way for resumption of production from the Cam & Motor pits.
“The BIOX plant was successfully commissioned subsequent to period end, on the 14th of April 2022. Gold production for the quarter was subdued at 34 percent below the same period in the prior year due to the testing of the BIOX Plant,” said the group in a trading update for the quarter.
During the period under review, erratic power supplies also continued to affect mining activities for the group.
At Renco Mine, power supply challenges persisted throughout the quarter which resulted in reduced plant throughput.
Consequently, gold production declined by 21 percent compared to the same period in the prior year.
Rehabilitation of the power infrastructure of the mine being carried out by ZETDC is progressing well despite delays due to logistical and insufficient resources.
The group also cited the operating environment as challenging, which subsequently affected production.
“The nostro retention for exporters remained at 60 percent from the prior year and continues to be inadequate for business sustenance and expansion projects.
“Power supply challenges remained prevalent throughout the quarter, which resulted in under capacity utilisation and a high cost of production through use of expensive alternative power sources,” said RioZim.
However, the average price of gold during the period rose 4 percent to US$1 820 per ounce from US$1 745 recorded in the comparative period in 2021.
As for diamond business, the group’s associate RioZim Murowa recorded a 49 percent decrease in production compared to the same period in the prior year due to processing low grade stock piles throughout the period.
Meanwhile, the associate’s expansion project to upgrade the processing capacity of the plant is progressing well and is forecast for commissioning in the current financial year.
The new plant will enable processing of high volume throughput at lower grades to sustain production.
Management is also upbeat about improved earnings following increased production from its multimillion dollar BIOX Plant which was commissioned subsequent to period end.
Already, the testing phase of the plant during the period produced positive results and the group is confident of scaling up production from the second quarter of 2022.