Online Reporter
Michael Tome
Business Reporter
RioZim Limited recorded a 54 percent decline in gold production, yielding 428 kg compared to 940 kg in the previous year, primarily attributed to low plant uptime.
The mining group experienced low plant uptime at both Cam & Motor and Renco mines.
At Cam & Motor, the decommissioning of the second mill led to reduced milling capacity, while Renco’s plant reliability deteriorated due to ageing infrastructure.
Despite the decline in production, the group benefited from a 25 percent increase in the average gold price, which rose to US$2 389 per ounce from US$1 913 in the prior year.
Revenue, however, fell to ZiG4,755 million from ZiG795,7 million in the previous year, largely due to subdued production.
Renco Mine’s plant throughput decreased by 38 percent, compounded by a nine percent reduction in grade, resulting in a 45 percent decline in gold production to 243 kg.
The mine is focused on refurbishing plant structures and carrying out exploration and development activities to improve efficiencies and upgrade its resources.
Cam & Motor mine recorded a 63 percent decrease in gold output to 185 kg, largely due to insufficient resources to fund the installation of a second mill, leading to reduced capacity throughout the year.
The mine switched to contract mining in the second half of the year to upscale mining activities and ensure adequate ore supply.
Meanwhile, Dalny Mine remained under care and maintenance during the year, while the small-scale project became operational with limited production due to capacity constraints. The mine is expected to improve production after resolving setup challenges, which will help partially fund its care and maintenance costs.
“The Group achieved gold production of 428 kg, which was a 54 percent decline from the prior year’s gold production of 940 kg. The fall in production was mainly attributed to low plant uptime at both Cam & Motor and Renco Mines.
At Renco Mine, plant reliability gradually deteriorated due to falling plant structures as the plant has aged. The reduced plant availability at both mines resulted in low plant throughput and subdued gold output,” said RioZim chairman Mr Saleem Rashid Beebeejaun in the full year results to December 2024.
On the other hand, the Base Metals Business refinery (ENR) remained under care and maintenance during the year, with ongoing initiatives to secure raw materials needed to restore full production.
In the Chrome Business, the company made progress in deriving value from its chrome claims in Darwendale, following an amicable resolution of disputes as mining activities commenced under a joint venture partnership arrangement, supported by all stakeholders.
Diamond business throughput decreased by 47 percent due to low availability of heavy mobile equipment, as the current fleet has exceeded its economic life, resulting in persistent breakdowns.
Consequently, the Mine decommissioned its heavy mobile equipment and moved to hired equipment for material handling.
Carats produced decreased by 15 percent to 359 000 carats, resulting in a net loss for the period and a share of loss from the Associate of ZiG66 million.
