Embattled diversified mining firm RioZim Limited saw its group loss widen dramatically in 2024, with the company reporting a ZWG628.4 million deficit—more than quadruple the ZWG107.7 million loss posted the previous year amid operational setbacks in both its gold and diamond segments.
By Ryan Chigoche
In its latest financial results, the company attributed the downturn to a 54% plunge in gold production, as well as a weaker performance from RZM Murowa, its diamond mining subsidiary.
Group revenue also fell sharply to ZWG475.5 million from ZWG795.7 million in 2023, reflecting falling volumes and weakening diamond prices.
While the diamond unit had previously provided a buffer for RioZim during the gold segment’s downturn, 2024 saw Murowa’s own output decline.
Carats produced dropped by 13% to 359,000, down from 414,000 the previous year.
The company blamed the diamond output decline on a 47% drop in plant throughput, which was caused by the poor availability of its ageing heavy mobile equipment.
“The Associate’s plant throughput went down by 47% during the year, compared to the prior year, mainly due to low processed tonnes as a result of low availability of the mine’s heavy mobile equipment. The current fleet has passed its economic life. The low plant performance resulted in the mine decommissioning all its heavy mobile equipment during the year, as it became unsustainable to run due to persistent breakdowns,” the company reported.
Following the decommissioning of its equipment, RZM Murowa turned to hired machinery for its material handling needs.
However, the operational disruption weighed heavily on performance, leading to a net loss at the mine. RioZim’s share of the loss from the associate surged to ZWG66 million, a sharp increase from ZWG95,000 in the prior period.
Despite the setback, RZM Murowa remains a key asset in RioZim’s diversified portfolio, especially as the company’s gold operations have come under intensified pressure from declining grades, high costs, and inconsistent power supply.
The group is hopeful that ongoing exploration activities at Murowa, which began in the first half of 2024 and continued through year-end, will support the resumption of full-scale mining and extend the life of the mine.
RioZim is also banking on an imminent capital injection to stabilise operations and return to profitability.
“With the conclusion of the capital injection into the company, which was imminent as at the date of approval of the financial statements, the future of the group looks set to bounce back to profitability and positive cash flows,” the group reported.
The group continues to refine its multi-commodity strategy. However, the outlook remains uncertain as global diamond demand softens and gold prices show volatility. Financial analysts have warned that RioZim must aggressively pursue operational efficiencies, cost reductions, and production stabilisation if it is to reverse its current trajectory.
Currently, RioZim holds a 44% stake in RZM Murowa, while Murowa Private Limited, linked to the late Harpal Randhawa, holds a 35% stake, giving Randhawa’s interests a combined controlling share of nearly 80%. Other shareholders include the RioZim Foundation (4.9%) and Mega Market (4%).
As both the gold and diamond segments experience headwinds, RioZim’s future will depend on its ability to navigate shifting commodity prices, fix operational inefficiencies, and fully implement its recapitalisation plan.
