adminduring the same period last year.
The firm recorded improved mineral production, with gold production increasing marginally to 9 321 ounces, up 0,7 percent year-on-year while nickel production grew 20 percent to 4 119 tonnes.
RioZim’s interim performance is largely reflective of the negative impact of the group’s under-capitalisation.
Operating margins improved to 6,9 percent from 1,5 percent the prior period benefiting from the firm gold price which averaged above US$1 440/oz resulting in operating income increasing 381 percent.
However, high finance charges amounting to US$6,5 million weighed down on the group’s profitability.
Meanwhile, production at Murowa Diamonds increased 87 percent to 160 931 carats and diamond prices improved in the second quarter.
Management expects the turnaround at Murowa to be reflected in its second quarter sales.
Operations at Empress have been scaled back following a force majeure declaration by BCL.
This is expected to affect operations until mid-October. Limited cash flows led to limited exploration work.
Limited drilling was undertaken at Cam and Motor with assay results having increased the extent of the resource.
A resource of 5 million tonnes (724 491 oz of contained gold) at an average ore grade of 4,36g/t has been estimated at a depth of 200 metres.
Additionally, limited underground development at Renco earmarked at extending the life of the mine were undertaken and resulted in improved head grade.
RioZim’s upside lies in its projects including Cam & Motor
open pit, the diamond project (Murowa), the chrome project and the coal venture, with a possibility of a power plant on the Sengwa coalfields.
The Sengwa coalfield has thermal fuel resources that can supply a power station producing around 2 000 megawatts.
The key issue, however, relates to the successful conclusion of the company’s capital raising initiatives.
Bongani Ndlovu
Online Reporter