RioZim goes into the red

company attributed the depressed financial performance to low metal sales and unfavourable metal prices during the period.
“The loss is attributable to low own metal sales and a decline in metal prices,” said the company in a statement.
Net financing costs amounted to US$13,6 million compared with US$9 million in the previous year.
RioZim operates three mines producing gold, nickel, copper and diamonds.
Renco Gold Mine’s output increased marginally to 18 500 ounces compared with 18 000 ounces in 2010. But management said output was low in the third quarter due to main host problems which have since been resolved. In respect of the Empress Nickel Refinery, nickel and copper production dropped from 8 550 tonnes in 2010 to 8 100 in the year just ended.
Diamond output at the Murowa Mine more than doubled to 324 000 carats last year, said RioZim.
Production rose to 324 000 carats from 141 000 in 2010.
RioZim holds a 22 percent stake in Murowa, while Rio Tinto International owns the majority stake.
Murowa has since put on hold a US$300 million expansion plan to lift output to 1,8 million carats. There are also indications by Rio Tinto that it could divest from the business.
RioZim said the planned exploration programme for Cam & Motor Mine is almost complete. The company says work is underway to take the project to a bankable stage. But funding constraints have slowed this down.
Similarly, funding constraints are delaying drilling for the Kenilworth Gold prospect and the Chimakasa ferrous nickel deposits.
But capitalisation of these projects may come sooner rather than later as the company’s shareholders approved all the capital-raising resolutions at a recent Extraordinary General Meeting.