• Headline earnings remained negative at ZWG83.9 million despite ZWG1.3 billion reported profit
• Gold operations recorded a ZWG150.8 million segment loss after production resumed
• ZWG687.2 million in new borrowings financed the operational restart

Harare – RioZim, Zimbabwe’s embattled miner has returned to a ZWG1.30 billion profit in the first half of 2026 from a ZWG300.6 million loss a year earlier, with the reported recovery dominated by debt restructuring, asset disposals and other income rather than profitability from its underlying mining operations.

The gold segment recorded a ZWG150.8 million loss and the group remained in a headline loss position of ZWG83.9 million after capital and non-recurring items were removed.

Production has recovered materially from the near standstill experienced during the comparable period. RioZim produced 213 kilograms of gold during the six months and revenue increased to ZWG299.9 million from ZWG21.6 million, supported by an average gold price of US$4,689 an ounce compared with US$3,075 an ounce a year earlier.

Gold operations generated the full ZWG299.9 million of external revenue and still recorded a segment loss of ZWG150.8 million, while the base metals segment lost another ZWG8.7 million. A ZWG1.206 billion contribution recorded under adjustments and eliminations lifted consolidated operating profit to ZWG1.046 billion.

Other income reached ZWG1.304 billion during the half, more than four times revenue from mining operations. The largest component was a ZWG935.8 million write off of borrowings owed by RioZim to former associate RZM Murowa, following shareholder approval of the restructuring in April.

The Murowa disposal added another ZWG303.7 million profit. RioZim sold its 22.2% stake for ZWG600.5 million, with the consideration applied against amounts it owed Murowa instead of being received as cash.

RioZim also recognised ZWG143.1 million from the disposal of mining claims, including One Step Gold, Mutandahwe Tungsten and diamond claims associated with Murowa. The company said some of those assets required development capital it did not have, leading it to sell them to raise working capital and concentrate resources on core operations.

Headline earnings remove profits and losses considered capital in nature from ordinary operating performance. After adjustments for the associate disposal, mining claims and related restructuring items, RioZim recorded a headline loss of ZWG83.9 million, equivalent to a headline loss per share of 68.78 cents.

The distinction places RioZim’s H1 recovery at an intermediate stage. Gold is being produced again, revenue has returned and the balance sheet has benefited substantially from restructuring, though the mines have yet to generate enough operating earnings to carry the group independently.

Cash generation reinforces that position. RioZim used ZWG669.4 million in operating activities during the six months, compared with an operating cash outflow of ZWG23.3 million in H1 2025. The group funded that requirement through ZWG687.2 million of new borrowing inflows.

Most of that new funding came through arrangements linked directly to RioZim’s producing gold assets. Feifan Mining advanced ZWG274.9 million under an arrangement linked to cash generated from Renco Mine, while Feifan Double Investments advanced another ZWG412.3 million primarily for the resuscitation and stabilisation of Cam & Motor and working capital.

The Renco arrangement goes deeper than conventional lending. Feifan has the exclusive right to mine and process gold ore at the operation, with proceeds from gold sales ring fenced towards recovery of funds advanced to RioZim. RioZim recognised ZWG210.1 million as income from the mining arrangement during the half.

Contractor capital has therefore become integral to the operating restart. RioZim receives funding and access to the operating capacity required to restore production, with future mine cash flows committed to repayment of the capital that financed the recovery.

Borrowings consequently closed June at ZWG748.6 million from ZWG455.3 million at December 2025. Some debt is secured against mining assets, including the Renco related funding arrangement, creating a direct relationship between mine performance and RioZim’s ability to reduce its financing burden.

The restructuring has already repaired a substantial portion of the historical balance sheet deficit. Negative equity attributable to shareholders narrowed to ZWG238.0 million from ZWG1.54 billion at December, largely through the ZWG1.30 billion profit recorded during the half. Total group equity remained negative at ZWG258.4 million after non controlling interests.

Liquidity remains constrained. Current liabilities stood at ZWG2.11 billion against current assets of ZWG883.0 million, leaving a current funding gap of roughly ZWG1.23 billion at June.

RioZim’s production plan now places Cam & Motor at the centre of the next stage. Chairman C Dengu said installation of a second mill had commenced, with commissioning targeted before the end of 2026 to raise throughput and gold production.

Renco carries a heavier rehabilitation requirement. Dengu said the mine needs significant capital for an ageing processing plant, exploration and mine development as grades decline, together with refurbishment of its power supply and backup infrastructure. Open pit mining was trialled during the half and heap leaching projects remained under development.

RioZim’s next earnings threshold therefore sits inside the mines themselves. The company has already used asset sales, debt restructuring and contractor funding to restart gold production and cut the accumulated balance sheet deficit.

Cam & Motor and Renco now have to convert that financial restructuring into sustained mine level profitability and positive operating cash generation. Until that happens, the ZWG1.3 billion reported profit represents a major balance sheet recovery, with the core gold business still carrying the unfinished part of RioZim’s turnaround.

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