RioZim narrows losses in H1 on improved gold output

RioZim narrows losses in H1 on improved gold output

HARARE, October 1 (The Source) – Resources group RioZim’s half year loss narrowed to $6,9 million from $7,4 million last year, on improved gold output.

The company reported on Thursday that gold output was up 61 percent as a result of its initiative to process ore from its Cam and Motor mine – which is yet to be commissioned, at a nearby rented plant.

The arrangement which has contributed 102 kilogrammes of gold since April will continue until the group commissions its own plant in the second quarter next year.

In July this year, RioZim raised $10 million through a rights issue to reopen the historic Cam and Motor gold mine which is seen as key to the group’s revival.

Gold production at Renco Mine also improved, registering a 24 percent increase to 366kg in the six months to June. The increase was a result of a 10 percent improvement in grades and a 14 percent increase in ore generation.

Revenue during the half was 41 percent lower than that of the comparative period at $23,1million as commodity prices remain depressed.

Operating loss narrowed to $2 million from $4,6 million posted in the comparative period.

The group’s Empress Nickel Refinery (ENR), which did not receive matte from its sole supplier during the half, will remain under care and maintenance up to year end.

RioZim recorded a share of loss of $573,000 in Murowa Diamonds in which it had a 22percent interest until global resources giant Rio Tinto sold off its 78 percent stake in the mine near Zvishavane to RZ Murowa Holdings on June 17.

Diamond output at the mine fell by nearly 50 percent to 99,000 carats compared to 196,000 carats achieved in the same period last year.

With Rio Tinto’s exit, RioZim has taken over management of the mine.