Online Reporter
Michael Tome
Business Reporter
RioZim Limited widened its losses during the year to December 2025 after gold production plunged by 80 percent, limiting its ability to capitalise on the record-high bullion prices.
The Zimbabwe Stock Exchange-listed diversified miner has been buckling under prolonged operational and financial constraints, attributable to various challenges.
RioZim is among entities that have often cited the impact of the central bank’s export retention policies, which required the company to surrender a 30 percent portion of their foreign currency earnings for local currency, as eroding profit margins.
Additionally, frequent foreign currency shortages and delayed payments from key debtors have hindered liquidity.
A shift in ore type at the flagship Cam & Motor Mine—from oxide to refractory sulphide—required a massive US$35 million capital investment for new infrastructure.
In the absence of the required fresh capital injection, persistent plant breakdowns, severe power outages and equipment downtime drastically reduced output and profitability.
Notably, though, while RioZim has struggled for viability, fellow industry giants like Blanket Mine have seen remarkable success—evidenced by consistent production exceeding 75 000 ounces per annum—stemming from continuous capital investment, including the completion of its Central Shaft and a dedicated solar power plant.
RioZim has struggled to attract external investment while local lenders could only offer short-term, high-interest loans.
The group recorded a net loss of ZiG739,1 million during the review period, compared to ZiG628,5 million in the same prior period last year, as its flagship gold mining operations remained inactive.
The tragic passing of the majority stakeholder, Mr Harpal Randhawa in 2023 caused some leadership uncertainty.
Subsequently, the company was hit by severe allegations of financial impropriety, including asset stripping, unremitted statutory/pension deductions and unpaid employee salaries, which led to court battles and corporate rescue applications.
