RioZim’s gold production soars: Q3 results show a ...

RioZim’s gold production soars: Q3 results show a 13% hike

Audrey Galawu

RioZim Limited recorded a 13% increase in gold production to 307kg from 272kg recorded in the same quarter of the previous year.

The rise in gold production has been credited to improvement in power supply due to the Zimbabwe Electricity Transmission and Distribution Company’s additional capacity at Hwange and the company’s response to power supply challenges by investing in back-up generators across all its mines.

In its 2023 interim report for the third quarter, RioZim, however, highlighted that exchange rate volatility continued to cause price distortions in production inputs resulting in inflation of the Group’s cost base and causing profitability pressure.

“In gold business, Cam & Motor Mine presented a 14% increase in gold production, driven primarily by increased milling throughput due to significant capital expenditure interventions on the crushing plant. The Dalny Mine, however, stayed under full care and maintenance during this period.

“Renco Mine production rose by 12% fuelled by improved power supply, enabling an upscaling in milling throughput and near-optimal plant availability.

“The Empress Nickel Refinery also remained under care and maintenance throughout the quarter.

“On the other hand, RZM Murowa, the Diamond Business unit, saw a 12% reduction in diamond production due to plant breakdowns on heavy mobile equipment,” reads the report.

Dalny Mine has been placed under full care and maintenance since last year, which worsened the decline in gold production for last year.

The total indicative share trading liquidity for RioZim Limited in the past 12 months, as of November 3, 2023, is ZWL$114.36 million and an average of ZWL$9.53 million per month.

The Group is currently investing in back-up generators to lessen the negative impact of power supply shortages.

“RioZim anticipates an exacerbation in power challenges with the upcoming rainy season, which has led the firm to invest in back-up generators across its mines. However, these come with high production costs attributing to significantly increased fuel consumption.

“The Company has launched a refurbishment project on one of the ball mills at Cam & Motor Mine, which may reduce the processing capacity in the short term, but aims to improve operations overall,” RioZim revealed.

The Group has also embarked on an optimisation and improvement plan to enhance plant recoveries.