RioZim gold production declines 17 percent

RIOZIM’S gold production for the year ended December 31, 2022 declined by 17 percent to 929kg from 1 122kg produced in the prior year as the group’s optimisation of its BIOX plant was blighted by power outages.
In a statement accompanying audited financial results, RioZim chairman Saleem Beebeejaun said subsequent to the commissioning of the BIOX plant at Cam & Motor mine, the group focused on optimising the plant to bring it to nameplate capacity and eliminating teething challenges “hence production was subdued”.
“Dalny was placed under full care and maintenance during the year, which exacerbated the decline in gold production for the current year. The gold price remained firm and fairly consistent from the prior year and averaged US$1 766 per oz for the year compared to US$1 774 per oz in the prior year.”
For the period under review, the group’s revenue rose to $20,6 billion from $5,8 billion achieved in the corresponding period last year.
“This was an exponential increase from the prior year’s revenue of $5,8 billion despite the decline in gold production mainly due to the depreciation of the local currency against the United States dollar,” he said.
Beebeejaun said the success of the group this year was a testament to the shareholders’ continued dedication to the group.
“By investing in excess of US$100 million, the group delivered two milestone high-tech expansion projects to secure the future of the company, these being: the Biological Oxidation (BIOX) plant at Cam & Motor mine and Project Crown Jewel 500tph plant at RZM Murowa.
“This project will resuscitate mining operations and bring a new lease of life to Kadoma town and its surrounding communities,” he added.
Notwithstanding the positive contributions of these two projects to the group’s production, Beebeejaun conceded that the company continued to suffer from acute power supply challenges, which significantly weighed down the group’s efforts to increase production volumes.
“Foreign currency challenges and exchange rate distortions also continued to negatively impact the group’s profitability,” he further said.
As for the gold business, Beebeejaun said power supply challenges at Renco Mine worsened during the period under review while Dalny Mine was placed under care and maintenance.
Mining operations at One-Step were discontinued at the close of 2021 hence no gold was produced in the current year.
As for Cam & Motor Mine, operations commenced from the refractory sulphide pits as the year started to pave the way for the commissioning and bringing into production of the BIOX plant.
Though the plant experienced some teething challenges, it registered significant growth in volumes during the period under review.
The mine produced 527kg for the year, thus achieving 50 percent growth compared to 351kg produced from One-Step mining operations in the prior year. Despite this, the plant operated well below its capacity due to supply challenges as with other operations.
As for the base metals business, Beebeejaun said the refinery operated under care and maintenance throughout the period and there was no traction in the current year on the company’s efforts to secure raw material feed for the refinery.
For the diamond business, Beebeejaun said production for the period under review marginally increased by three percent to 426 000 carats compared to the 2021 production of 414 000 carats.
However, the group’s chrome business remains stunted as the legal dispute relating to the company’s chrome claims in Darwendale still awaits finalisation by the courts of year-end.
The group’s 178MW solar plant and the 2 800MW Sengwa Power Station projects haven’t progressed as RioZim continues the search for suitable partners.
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