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RioZim loss widens

“The period was characterised by rising cost of production driven by inconsistent power supply and spiraling exchange rates which subsisted throughout the year. Resultantly, the group recorded a net loss for the year.”

RioZim Limited, a publicly traded resource company, reported a wider loss in the 12 months ending December 31, 2023, amounting to ZWL$95.81bn from ZWL$20.04bn incurred in the previous year.

Revenue for the miner stood at ZWL$216bn in the period under review from ZWL$ 20bn reported in the previous year.

Board chairman, Saleem Beebeejaun, blamed worsening economic conditions for the widening loss.

“Notwithstanding the notable growth in production and favourable gold prices, the financial performance was weighed down by the macroeconomic environment which remained turbulent and challenging.

“The period was characterised by rising cost of production driven by inconsistent power supply and spiraling exchange rates which subsisted throughout the year. Resultantly, the group recorded a net loss for the year,” Beebeejaun said.

Production for the year stood at 940kg, which was a slight 1% increase from prior year production of 928kg.

“The subdued production volumes were due to persistent plant breakdowns largely experienced at Cam & Motor Mine, which struggled with breakdowns in its milling section resulting in reduced throughput,” Beebeejaun

The refinery at Cam & Motor remained under care and maintenance during the period under review.

Production for the year at its associate, Murowa Diamond Mine declined by 3% to 414 000 carats compared to 426 000 carats recorded in 2022.

” The group recorded a share of loss from the associate of ZW$5.4bn in contrast to the share of profit of ZW$102.1m in the prior year due to the reduced carats in the current year,

“The Company is currently engaging various potential funding partners in an effort to reach financial closure.”

He said power supply remains a major threat to production at Renco mine and resolution of this issue will go a long way in bringing production to plan.

The company, he indicated, is focused on finding alternative sources of power supply including adding generator capacity amongst other initiatives. – (Business Times)

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