admin
Business Reporter
Gold production at RioZim Limited declined by 27 percent to 306 kilogrammes (kg) in the six months to June 30, 2024 from 417kg achieved in the same period in the prior year mainly due to Cam & Motor Mine operating sub-optimally due to low plant throughput and depressed recoveries.
Cam & Motor mine is the group’s flagship gold producer.
Group chairman Mr Saleem Beebeejaun, in a statement of the financials for the period under review, said the mine faced mining and ore supply challenges to the plant due to lagging pit development.
“The mining contractor commenced mobilisation at Cam & Motor Mine, subsequent to the period end, which will see the acceleration of pit development and guarantee adequate ore feed to the plant and the improvement in pit accessibility will avail better quality ore to the plant which will have a positive impact on gold recoveries.
“Gold production is therefore forecast to improve as these initiatives start to make an impact in the second half of the year,” he said.
Mr Beebeejaun said Renco Mine also recorded lower gold production due to inconsistent plant performance.
During the period under review, the gold price averaged US$2 165 per ounce (oz) which was 13 percent in the positive from US$1 910/oz recorded in the comparative period.
The group’ s revenue for the period was ZiG282,5 million, a 20 percent decline from ZiG352,4million recorded in the same period in the prior year.
“The favourable gold prices to some extent cushioned the Group from the effects of lower production,” said Mr Beebejaun.
In terms of operational performance, Renco Mine, during the period, was focused on the refurbishment of plant structures and various equipment within the plant as equipment breakdowns were persistent. As a result, the plant did not operate efficiently which negatively impacted plant throughput.
Mr Beebeejaun said due to the lower plant throughput, Renco’s gold production decreased by 9 percent to 176 kg from the 194 kg recorded in the comparative period.
“Since the beginning of the year, the mine put in place an alternative power supply arrangement to complement power supply from the national power utility which measures stabilised power supply to the mine.
“The mine will continue to focus on plant stabilisation to ensure consistent throughput which will cement the ‘high volume low grade’ strategy which is necessary for Renco to produce optimally,” he said.
Cam & Motor mine gold production for the six-month dropped by 42 percent from 223kg recorded in the same period in 2023 to 130kg in the current period.
“The mine’s lower production was largely due to ore supply challenges to the plant. Pit development is currently lagging, which has resulted in the mine’s inability to access some areas of the pit. “Accelerated pit development is required to enable mining as per the pit design,” said Mr Beebeejaun.
He added that the inability of the mine to access all areas of the pit had a negative effect on the quality of the ore as per the desired blending matrix resulting in low recoveries.
Subsequent to the period end, he noted that the mine changed its mining strategy from owner mining to contract mining to accelerate pit development and bring the current pit profile to plan and the initiative is expected to improve ore supply within a shorter time which will bring stability to production.
During the period under review, Dalny Mine remained under care and maintenance with no gold production but the mine is at an advanced stage of setting up its small-scale operations after having secured the necessary regulatory approvals.
“The setting up of the small-scale plant is currently ongoing and gold production is expected to commence in the second half of the year,” said Mr Beebeejaun.
Diamond production at associate company RZM Murowa marginally increased by two percent to 216 000 crats in the half year to June 30, 2024 compared to 212 000 crats produced in the prior year comparative period driven by improved grades.
The improved grades are coming from the stockpiles which the mine is currently processing as mining activities from the pits remain suspended.
“The mine is currently engaged in extensive exploration activities targeted at extending the life of its pits which will pave the way for the resumption of mining activities in the pits,” he said.
However, despite an increase in diamond production, Murowa recorded a decline in revenue and profitability due to a continued decline in diamond prices.
“Consequently, the share of profit from the associate declined to ZiG5,6 million from ZiG12,8million recorded in the comparative period,” he said.
In the base metals business, the refinery remained under care and maintenance during the period while the chrome business commenced mining activities with its private partnerships at its Darwendale claims after an amicable resolution was reached on the dispute that surrounded those claims.
In the energy business, there has been no movement on the company’s energy projects namely the 178 MW Solar Project and Sengwa Project as both are now at the funding stage and the company continues engagements with various stakeholders for a potential funding arrangement.
Online Reporter