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RioZim gold production FY2019 down 7 percent

By Business Reporter – Thursday 17 September 2020

HARARE (Mining Index) – RIOZIM’s production performance FY2019 was down 7 percent in gold production to 1.658 tonnes from 1.792 tonnes realised in 2018.

The decline was attributed to incessant power cuts of up to 18 hours per day which hampered production at all RioZim’s mines from Q2 2019.

RioZim is an integrated mining company with a diverse portfolio of resources in gold, base metals, diamonds, coal and chrome.

Renco Mine produced 556kgs of gold, 6% lower than the comparative period production of 591kgs.

Dalny Mine’s bullion production regressed by 18% to 364kgs from 442kgs recorded in the same period in 2018.

Cam & Motor Mine achieved 738kgs of gold, a 3% decline from 759kgs achieved in 2018.

“The gold price was favourable throughout the period and averaged US$1,395/oz, 12% higher than an average price of US$1,247/oz recorded in the prior year. This partly cushioned the Group’s reduced revenue due to lower production volumes,” said RioZim’s chairman S R Beebeejaun.

Murowa Diamonds recorded a 7% regression in production to 685 000 carats from 740 244 carats produced in the comparative period in 2018.

The low diamond production was attributed to intermittent power supply which resulted in lost production running time.

In addition to the power cuts, the Group also suffered from breakdowns on the mills section at its Cam & Motor plant. Consequently, revenue for the year was subdued at ZWL$577.1 million.

“The Group’s gross margin declined to 2% compared to 18% achieved in the prior year which is reflective of the heavy premiums borne by the Company as a result of the disparity between the local component of the Group’s revenue which is received at interbank rate against prices of local inputs which are pegged at alternative market rates,” Beebeejaun.

RioZim successfully opened One Step Mine hauling ore to Cam & Motor Mine.

The group commenced the multi-million dollar BIOX Plant project in Q4 2019 and secured power generation licences paving way for development phase of the solar plants.

In the year under review the Group operated Renco Mine located in Masvingo, Dalny Mine based in Chakari, Cam & Motor Mine, One Step Mine and Empress Nickel Refinery in Kadoma.

In addition, the Group holds 50% interest in Sengwa Colliery (Private) Limited, a company with coal assets located in Gokwe North and a 22.2% interest in RZM Murowa (Private) Limited a company with a diamond operation located in Zvishavane. ENDS//

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