RioZim Limited has rebounded strongly, reporting a net profit of ZiG1.30 billion (approximately US$48.6 million) for the six months ended 30 June 2026, following a turnaround in operations and improved market conditions after a period of severe disruptions.
The diversified mining house saw its total revenue surge more than tenfold to ZiG299.90 million, up from a meager ZiG21.64 million recorded during the same period last year.
This drastic turnaround was largely anchored by a robust recovery in gold output, with the group producing 213 kilograms of gold, alongside a booming international commodity market where the company realized a record average gold price of US$4,689 per ounce.
The operational revival was driven by the successful resumption of mining activities at the Renco Mine and processing operations at the Cam & Motor Mine, both of which had previously suffered near-total stoppages.
Commenting on the operational strategy going forward, Chairman C. Dengu stated that installation of a second mill at Cam & Motor had commenced, with “commissioning targeted before the end of 2026 to raise throughput and gold production.”
However, regulatory filings reveal that the group’s headline profitability was heavily driven by aggressive debt restructuring and asset sales rather than sustainable operational cash flows.
The bulk of RioZim’s net profit was boosted by a massive ZiG935.85 million associate loan write-off recorded under other income.
Furthermore, to mitigate its severe liquidity pressures, the company completely exited its diamond business by selling its remaining 22.2% stake in associate firm RZM Murowa for ZiG600.51 million, securing a net gain of ZiG303.7 million.
Murowa had yielded zero diamond production for RioZim during the period due to ongoing operational constraints.
The company further boosted its bottom line by liquidating non-core mining claims including the One Step Gold, Mutandahwe Tungsten, and various Murowa-related diamond holdings for a combined ZiG143.13 million.
In reviewing the severe infrastructural deficits across the portfolio, Dengu highlighted that Renco carries a heavier rehabilitation requirement, noting that the mine “needs significant capital for an ageing processing plant, exploration and mine development as grades decline, together with refurbishment of its power supply and backup infrastructure.”
Despite the historic paper profit, independent auditors Forvis Mazars have flagged severe material uncertainties regarding RioZim’s ability to continue operating as a going concern.
Financial statements show that the group remains in deep distress, with current liabilities exceeding current assets by ZiG1.23 billion and total liabilities outstripping total assets by ZiG258.43 million.
Core operations actually consumed ZiG669.4 million in cash during the six-month period, forcing the miner to secure ZiG687.2 million in new borrowings and rely heavily on contract mining financiers like Feifan Mining to keep its shafts open.
While management stated they were “highly confident” that third-party funding, renewed operations, and higher gold prices would support the group’s recovery, they have already structurally committed a significant portion of future gold revenues from both Cam & Motor and Renco to repay these contractors.
This leaves the company heavily exposed to production volumes and future commodity price shifts, culminating in a fresh circular to shareholders proposing the outright sale of Renco Mine for US$35 million to stabilize the wider group
