RioZim gold production increases by 6 percent
Gold production at RioZim Limited group increased by 6 per cent during the first half of 2023 compared to the same period last year due to the government’s positive interventions and more particularly the upward review of the USD nostro retention for exporters to 75 per cent from 60 per cent at the beginning of the year.
Rudairo Mapuranga
In its reviewed group interim financial results for the half year ended June 30 2023, RioZim, however, said that despite the Group’s efforts in growing output, the overall performance for the period was weighed down by incessant power cuts and high cost of production driven by the spiralling cost of inputs which resulted in the Group closing the period in a net loss position. In spite of the challenges faced the future of the Group through the BIOX Plant and the 500 TPH Plant, is promising and the outlook looks positive.
The Group said gold production recorded a 6 per cent growth to 417kg from 393kg attained in the comparative period last year with the growth in gold production resulting from increased volumes at Cam & Motor Mine driven by the recently installed BIOX Plant. Metal prices were favourable during the period as the gold price rose by 4 per cent from an average price of US$1 834/Oz in the same period in the prior year to an average price of US$1 910/Oz in the current period.
Revenue for the period was ZW$49.96 billion in comparison to ZW$4.76 billion recorded in the same period in the prior year. The increase in revenue was partly a result of increased gold output as well as exchange rate variation from the comparative prior period. The Group incurred a net loss for the period of ZW$8.7 billion. Despite the growth in output in the current period, the cost base of the Group remained high due to the rising cost of inputs.
“After the successful completion and commissioning of the BIOX Plant in the prior year, the key focus in the current period was optimisation and ramping up of production to plant capacity. As a result of the ramping up exercises, production leapfrogged by 6% to 223kg from 211kg achieved in the comparative prior year period. After addressing all the notable teething challenges during the period the forecast for the second half of the year is positive and the Mine is set to continue on the growth trajectory achieved in the six-month period.
“Gold production for Renco grew by 11% to 194kg during the period from 174kg recorded in the same period in the prior year. The growth in output is attributable to the successful shift to the ‘high throughput low-grade strategy as grades continue to slide down,” RioZim said.
Dalny Mine operated under care and maintenance throughout the period. The future of the mine is dependent on the resuscitation of underground operations after the open pit resources were exhausted in prior years. The underground project requires a huge investment and is scheduled to be pursued in the near future.