• RioZim Limited's loss more than quadrupled to ZWG 628.4 million
  • Gold production plummeted by 54%, significantly impacting financial performance
  • Group revenue decreased to ZWG 475.5 million

Harare-Embattled diversified company RioZim Limited has widened its loss position, which more than quadrupled to ZWG 628.4 million from ZWG 107.7 million in FY2024, weighed down by a 54% plunge in gold production, according to the company’s latest financial update.

The company’s gold production was affected by low plant uptime at both the Cam and Motor and Renco mines, with Renco mine’s throughput decreasing by 38%, exacerbated by a 9% reduction in ore grade, which led to a 45% decline in gold production to 243 kg.

Similarly, output at Cam and Motor plunged by 63% to 185 kg due to delays in installing a second mill due to insufficient funding, which restricted operations to a single mill operating at reduced capacity due to low-quality ore supply and development bottlenecks in the pits.

As a result of these operational challenges, the company failed to capitalise on booming gold prices, which reached an average of US$2,389 per ounce in 2024, making it the only loss-making entity among gold companies in Zimbabwe, both listed and not listed.

Group revenue also fell to ZWG 475.5 million, down from ZWG 795.7 million recorded in the prior year.

The diamond unit also faced significant pressures amid a downturn in diamond prices. The diamond arm, Murowa, produced 13% fewer diamonds, achieving 359,000 carats compared to 414,000 carats in the previous period.

This performance is a testament to the company's struggles, and it has put its mines on sale early in 2025, seeking a US$20 million injection for recapitalisation, which is at an advanced stage according to the latest circular on May 29, 2025.

Currently, RioZim holds a 44% stake in the company, while Murowa owns 35%, giving the late Harpal Randhawa’s interests a combined majority shareholding of nearly 80%. Other shareholders include the RioZim Foundation with 4.9% and Mega Market with 4%.

Equity Axis News