- Gold production reduced by 27% due to the poor grade ore produced at Cam and Motor
- Gold prices increased by 27% to US$1 765/oz
- Renco mine’s output increased by 4%
Harare-Rio Zim’s gold production declined by 27% for the 12 months to December 2020 from 1.66tons achieved in the prior year to 1.21tons on the back of the low production at the Group’s flagship operation, Cam and Motor mine.
The Group’s One Step Mine hauling low grade ore to the Cam & Motor plant resulted in a drastic fall in gold production compared to the prior year when the Mine processed higher grade ore from its Cam pits.
During that period gold price maintained an upward trajectory in the period under review recording a 27% growth from the prior year’s average price of US$1 395/oz, to an average price of US$1 765/oz in the current year which counteracted the impact of lower production volumes.
Revenue generated for the period was ZWL$3.1 billion in comparison to ZWL$577.1 million in the prior year representing a 437% increase however this exponential increase in revenue was a direct result of the depreciation of the local currency against the US dollar.
However, Renco Mine recorded a strong performance with aggregate gold output of 580kgs, 4% above the prior year’s gold output of 556kgs the increased output was as a result of higher milling throughput which was achieved as the Mine implemented its ‘high volume low grade’ strategy which yielded positive results.
The company’s Dalny Mine recorded a 46% decline in gold production in the period uder discussion to 198kgs from the comparative period production of 364kg due to the major breakdowns in the milling section of its ageing plant which directly impacted milled output.
“Dalny currently relies on near the surface open pitable ores which have lower grades that culminate in low production volumes” the company highlighted.
Cam & Motor Mine Production closed at 427kg which was a sharp 42% decline compared to 738kg in the prior year this was as a result of the migration to the One Step Mine which produces low grade ore thus the decline.
Meanwhile the company said it is focusing on the completion of its BIOX plant project which will enable the resumption of mining and processing of high grade refractory sulphide ores from the Cam pits.
“Project activities resumed in the second half of the year albeit at a slow pace after lockdown measures were eased” the chairman said.
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