LISTED miner RioZim has commended monetary authorities for increasing the quantum of foreign currency that miners can retain, saying such a bold policy stance cushioned the group’s output growth.
The policy directive is in line with the Reserve Bank of Zimbabwe (RBZ) policy directive which allowed exporters, including miners, to keep 75% of their export earnings in foreign currency after the current cap of 60% drew complaints from the industry.
Presenting performance for the half year ended June 30 2023, RioZim chairman, Saleem Beebeejaun hailed the authorities for implementing the noble policy.
“The government’s positive interventions and more particularly, the upward review of the USD nostro retention for exporters to 75% from 60% at the beginning of the year partially cushioned the Group and complemented the output growth,” he said.
During the period, the group’s gold production recorded a 6% growth to 417kg from 393kg attained in the comparative prior year period attributed to increased volumes at Cam & Motor Mine driven by the recently installed BIOX Plant.
Metal prices were favorable during the period as the gold price rose by 4% 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.
“However, despite improved gold output, 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
“The overall performance for the period was weighed down by incessant power cuts and high cost of production driven by spiraling cost of inputs which resulted in the Group closing the period in a net loss position,” added Beebeejaun. – (New Zimbabwe)