By Business Reporter – Tuesday 6 October 2020 HARARE (Mining Index) – RIOZIM’s gold production for the half year ended June 2020 fell 39.09 percent to 586kg from 962kg obtained same period last year.
“The Group recorded low production volumes of Gold at 586kg compared to the 962kg achieved in the comparative prior period. The low volumes were attributed to, amongst other challenges, acute power cuts which resulted in depressed milling throughput, persistent mill breakdowns and lower grade ore from One Step Mine,” said S R Beebeejaun, RioZim chairman while presenting the company’s half year financial results FY2020 ended June.
The company says the low volumes were however, partly offset by the favourable gold price which averaged US$1,713/oz; an increase of 27% from US$1,346/oz realised in the same prior period.
The combined effect of low production attainment coupled with rising production costs weighed down RioZim’s performance closing the period with a loss of ZWL$77.4 million, a decline, compared to a profit of ZWL$38.2 million realised in the same prior period.
The Group’s revenue was subdued at ZWL$616.4 million.
Renco Mine produced 288kg; an 11% increase from the 259kg achieved in H1 2019. The increase in production is mainly attributable to improved plant availability as the plant breakdowns experienced in the comparative period were resolved.
Cam and Motor Mine achieved 199kg compared to 489kg recorded in the prior period. Plant and machinery breakdowns negatively impacted throughput and gold output. To address the equipment challenges, the Company is in the process of various capacitation activities which include repairs, rehabilitation and replacement of components to enable the plant to achieve installed capacity. The future of the Mine remains hinged on the completion of the BIOX project in order to access higher grade ore at the Cam pits than is currently being processed from One Step Mine.
99kg was produced at Dalny Mine during the period under review, lower than the 215kg attained in the prior period.
RioZim says there were significant equipment challenges experienced in both the mining and plant processing sections of the Mine which are being rectified.
Power supply challenges experienced during the period also hampered production performance. ENDS// www.miningndex.co.zw Twitter @IndexMining Facebook @MiningIndexNews LinkedIn @MiningIndex