RioZim rights offer on course

Business Reporter
DIVErSIFIED resource firm RioZim has said its US$40 million rights offer is on course, putting to rest uncertainty that has surrounded the offer, probably the biggest cash caller on the local market by a single company in the dollarised economy.
The rights issue aimed at transforming the group’s mining operations was approved by shareholders in May last year.
The proposed rights offer has, however, taken long before implementation because the mining group could not find an underwriter.
Managing director Mr Josphat Sachikonye confirmed yesterday that discussions with the underwriter were at an advanced stage.
“I am not at liberty to reveal more details on progress that we have made so far but we are almost there,” he said.
RioZim intends to use the bulk of the funds to finance new mining projects, including revival of Cam and Motor Gold Mine in Kadoma.
After raising cash, the group forecasts revenue to grow by 300 percent in the next three years. Last year’s revenue rose threefold thanks to strong metal prices.
Diamond production at Murowa Mine rose to 178 126 carats from 124 422 carats.
However, only 141 000 carats were sold at higher average prices than the 162 000 carats sold in 2009, the company said.
Murowa is planning a massive expansion programme to lift output and has so far spent US$11 million in exploration.
Gold production for the period under review, however, slumped 18 000 ounces from 22 762 as a result of power cuts. Nickel and copper output was almost flat at 8 600 tonnes.