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HIGH finance costs have severely eroded RioZim profits as the diversified resource firm posted a full-year loss of US$880 000.
The ZSE mining group, whose business includes extraction of gold and diamonds, said in a statement that total finance costs more than doubled to US$10,2 million from US$4,3 million recorded in the previous comparable period.
The US$880 000 loss was, however, better than US$16,2 million the group incurred during the full year to December 2009. Revenue was up US$67,4 million from US$43,6 million
Gold production for the period under review fell to
18 000 ounces from the 22 762 ounces as a result of power cuts.
The decline was, however, mitigated in mid-December with the introduction of an uninterrupted and ring-fenced power supply.
Nickel and copper output marginally declined to 8 600 tonnes from 8 800. Diamonds production rose to 178 126 carats from 124 422.
RioZim said its exploration programme was affected by limited cash flows.
However, infill drilling on the Cam and Motor Mine in Kadoma is continuing and has so far produced good results.
The company said it would accelerate underground development of Renco Mine when more funds are available.
Online Reporter