RIOZIM RE­PORTS IN­CREASED GOLD OUT­PUT:

The Herald (Zimbabwe) - - Front Page - Enacy Ma­pakame Busi­ness Re­porter

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.

Renco Mine gold pro­duc­tion was down by 15 per­cent

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