RIOZIM REPORTS INCREASED GOLD OUTPUT:
MINING concern, RioZim gold production for the half year ended June 30, 2017 rose 13 percent to 873 kilogrammes helping the group’s comprehensive profit swing in the positive.
RioZim reported $2,9 million profit for the year from a loss position of $403 000 as revenue for the period also jumped 16 percent to $37,8 million.
“The acquisition of Dalny Mine which was concluded in the second quarter and the commissioning of Cam & Motor Mine contributed to the growth. I am also pleased to advise that during this period, Murowa Diamonds reverted to profitability and contributed a share of profit in the sum of $583 000 compared to the share of loss from associate of $199 000 recorded in the comparative 2016 period,” said group chairman Mr Lovemore Chihota.
Gold production at Renco Mine reached 316 kilograms, representing a 15 percent decline from prior year’s 370 kilogrammes. Cam & Motor mine produced 361 kilogrammes and the mine was subject to various equipment failures resulting in significant loss of plant running time.
Cam and Motor Mine was reopened in October 2015 and the group continues to see it as a strategic unit anticipated to drive cumulative growth.
Recently acquired Dalny Mine produced 196 kilogrammes of gold during the period under review. The mine’s acquisition was concluded in the second quarter of the year which was in line with the group’s vision to acquire strategic gold mines.
Mr Chihota said Empress Nickel Refinery remained under care and maintenance due to unavailability of matte. Across the unit, the first quarter was negatively affected by adverse weather experienced in the turn of the rainy season which resulted in extreme flooding across all operations, coupled with power outages.
Overall, the mining sector has been affected by shortages in foreign currency, which have potential to slowdown the growth and productivity of the mining sector across the board.
For RioZim, focus remains on intensifying investment in further exploration and development in order to increase production, create more reserves and achieve sustainable profitability and cost containment.