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MINING firm RioZim posted a net loss of $2,3 million for the half-year ended June 2013, recovering from a $4,9 million loss posted during the same period last year.In a statement accompanying the group financials yesterday, chairman Mr Elisha Mushayakarara said overall performance was hedged by subsidiary Empress Nickel Refinery (ENR), which recorded a jump in turnover to $43,5 from $14,3 million.
As a result group revenue surged to $57 million compared to $31 million last year.
“Group revenue grew 83 percent over the comparative period on the back of ENR revenue growth of 204 percent,” said Mr Mushayakarara.
He said ENR performance had improved due to a change in business model from toll-refining to matte purchase and sale of own production.
Mr Mushayakarara, however, said an overall decline in metal prices negatively impacted on financial performance.
“Metal prices fell by an average of 25 percent during the first half of the year,” he said.
“The impact of the decline in prices is a reduction in revenue of around $7 million.”
Interest costs of $4.4 million, high electricity charges and disruptions at subsidiary Renco Mine in the first quarter of the year also impacted on performance.
Mr Mushayakarara said plans to install a 20 tonnes per day oxygen plant were at an advantage stage.
Installation of the plant is among a number of cost cutting measures being implemented to improve profitability, he said.
“The installation of the plant is expected to result in monthly savings of approximately $300 000 as well as eliminate the plant stoppages that were occurring when the liquid oxygen supplier was struggling to cope with demand,” Mr Mushayakarara said.
In the outlook period, RioZim announced plans to re-commence operations at Cam and Motor Mine.
As part of the preparations, the company will install a 1 000 tonne per day ore processing plant.
“The commencement of production by the second quarter of 2014 is targeted,” said Mr Mushayakarara. – New Ziana
Online Reporter
derick.khumalo