Chronicle Editor
Nqobile Bhebhe, Senior Business Reporter
DIVERSIFIED mining group, RioZim, has recorded a seven percent decline in gold production from 1 205kg produced in the prior year to 1 122kg but its revenue increased by 84 percent.
The mining group attributed the decrease in output during the period under review to low production at its Cam and Motor Mine, which saw an 18 percent decline from the prior year’s production of 427kg to 351kg.
In the latest trading update for the year ended 31 December 2021, the mining firm said a combination of delays in the completion of the BIOX Plant Project, and a significant drop in grades at the Cam & Motor plant resulted in subdued production.
“This impacted the Group’s production as both Dalny and Renco recorded almost consistent production from the prior year.
“The gold price recorded a marginal 1 percent increase from the prior year to an average of US$1 774/oz for the year compared to US$1 765/oz in the prior year,” it said.
“Despite a seven percent decline in gold production, the Group’s revenue increased by 84 percent to ZW$5.8 billion compared to the prior period’s ZW$3.1 billion primarily due to the depreciation of the local currency against the United States dollar,” the group said.
RioZim said Renco Mine operated at almost the same level of production as the prior-year achieving 561kg of gold, three percent lower than 580kg produced in the prior year.
It attributed the slight shortfall in gold output from the prior year to reduced plant throughput as a result of increased power cuts during the year.
Dalny Mine registered a six percent growth in gold production raking up 209kg of gold from 198kg produced in the prior year.
The growth in gold production was due to increased plant throughput as plant improvements carried out during the year successfully stabilized the plant, it said.
At One-Step Mine, production fell by 18 percent from the prior years of 427kg to 351kg.
“The low gold output was attributable to lower grades which dropped from the prior year,” said RioZim.
“The life of mine was extended during the year despite the grades deteriorating and mining operations continued for the full year. The One-Step ore was processed at the plant in Cam & Motor as had been happening in the previous year.”
The group noted that at Cam & Motor Mine, there was no gold production during the year, which was a carry forward from prior year as the mine continued with the construction of its BIOX Plant Project throughout the year.
Inadequate foreign currency and Covid-19 pandemic-induced challenges were cited for delays in the completion of the BIOX Plant, which was scheduled for the second half of the year.
It is anticipated that the construction of the BIOX plant will see RioZim beneficiate its precious minerals through processing pure oxide ores to make good grades and high recoveries generating more foreign currency.
The group said its refinery operated under care and maintenance throughout the period with 210tons of matte, 78tons of PGMs and 21tons of copper produced.
“Revenue of ZW$381 million was generated during the year from the projects at the Refinery, which partially funded the care and maintenance costs. The Company continues to engage various stakeholders to identify sources of raw material to feed the Refinery to normal production capacity and our stakeholders will be kept appraised,” said the company. — -@nqobilebhebhe
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