adminThe revival of the Cam & Motor gold mine has begun to yield dividends for diversified miner RioZim, with the mine’s half-year production outstripping the operations at Renco gold mine. Cam & Motor was re-opened in August last year after RioZim earlier successfully completed a $10 million capital raise through a rights offer last year. It was viewed as key to revival of the group.
According to the group’s half-year results, Cam & Motor’s output stats reflect a positive performance.
“Gold production at the recently re-opened Cam & Motor mine of 405 kilogrammes surpassed that of Renco Mine at 370kgs bringing total production to 775kgs compared to 441kgs in the same period last year,” said chairman Mr Lovemore Chihota. The improved gold output was buttressed by cost-containment measures during the period under review.
“The initiatives to cut production costs at the end of 2015 improved the blended all in cost of production in the first half of 2016 by 19 percent. We are continuing to cut costs and we believe we can reduce them by another 15 percent on a blended basis,” he added.
When the mine was re-opened last year, management set a projected output target of 4 000 ounces per month. Cam & Motor proved to be a cash-cow until it was closed about 50 years ago. It produced 150 tonnes of gold during its life span to 1968.
Meanwhile, the group posted an operating profit of $2,3 million for the half-year to June 30, 2016 against a loss of $1,9 million prior year comparative. Performance for the period was driven by nearly doubling of gold production and coupled with an improvement in gold prices.
RioZim’s revenue increased by 40 percent to $32,6 million compared to $23,1 million prior year comparative. — BH24.
Online Reporter