By ZiMining Reporter
DIVERSIFIED mining giant RioZim reported a 27% decline in gold production and a net loss for the first half of 2024, citing lower production, power challenges, and rising costs.
Turbulent operating environment
RioZim chairman Saleem Rashid Beebeejaun described the first half of 2024 as turbulent, citing volatile exchange rates and rising costs. “From the beginning of the year, exchange rates were volatile, causing inflation in raw material prices. This had a huge bearing on the group as production costs soared,” he said.
In April 2024, the Zimbabwean government discontinued the use of the Zimbabwean Dollar (ZW$) and introduced the ZiG currency (ZWG), backed by gold and cash reserves. This move provided some stability, with prices remaining more consistent thereafter. However, power supply challenges continued to threaten production.
Gold production slump
The group produced 306kg of gold in the first half of 2024, a 27% decline from 417kg last year. Low plant throughput and mining challenges contributed to this drop. “Power supply challenges remained a threat to the group, but alternative power arrangements improved supply to our mines,” Beebeejaun said. “Gold prices remained favourable, which helped boost revenue despite lower production.”
Mine-specific struggles
Cam & Motor mine’s production fell by 42% to 130kg due to delayed pit development, affecting ore quality. “Accelerated pit development is required to enable mining as per the pit design,” Beebeejaun explained. Renco mine’s output dropped by 9% to 176kg, despite refurbishing plant structures. “The inability to access all areas of the pit had a negative effect on ore quality,” Beebeejaun added.
Dalny mine and diamond production challenges
Dalny mine reported no gold production as it remains under care and maintenance. Small-scale operations are expected to resume in the second half of 2024 after securing regulatory approvals.
Murowa Diamond’s production increased by 2% to 216,000 carats, but revenue and profitability declined due to falling diamond prices. “Despite the production increase, Murowa recorded a decline in revenue and profitability due to the continued fall in diamond prices,” Beebeejaun noted. “The share of profit from the associate declined to ZWG 5.6 million, down from ZWG 12.8 million in the previous period.”
Rising to the Challenge in the Second Half of 2024
RioZim continues to face challenges but remains focused on stabilising its operations. The company plans to accelerate development efforts at its mines and continue efforts to improve power supply and reduce costs. Despite the setbacks, Beebeejaun remains optimistic about the company’s long-term prospects. With strategic adjustments and further investment in infrastructure, RioZim aims to restore production levels and return to profitability in the second half of 2024.
