Harare – Listed diversified miner RioZim Limited says revenue for the half year ended June 30, 2018 grew by 17 percent to $44.4 million from $37.8 million realised in the same period last year.
In a statement accompanying the group financial results, Chairman L Chihota attributed the growth to an 18 percent increase in gold sales volumes to 1 007 kilograms compared to 852 kilograms last year and a 5 percent increase in the gold selling price which averaged $1 298/oz. from $1 238/oz. that was achieved in the first half of 2017.
In the period under review operating profit of $2.3 million compared to a loss of $36 000 was recorded and the Group’s share of profit from its associate grew up by 57 percent from $583 000 reported in 2017 to $913 000.
Overall, in the first half of the year, the Group achieved a profit before tax of $206 000 was realised compared to $2.9 million in 2017 which was achieved on the back of gain on bargain purchase of Palatial Gold Investments (Pvt) Limited.
In gold business, Cam and Motor Mine produced 458 kilograms of gold which was 27 percent above the above the comparative prior period production of 361 kilograms.
“The higher production was underpinned by improved mill throughput and better ore grades. The miner performance was however weighed by falling plant recoveries caused by an increase in refractory ore which cannot be effectively processed through the current traditional Carbon in Leach (CIL) process.”
To address this, Chihota said the Mine installed a flotation plant which will be commissioned in Q3 2018.
At Renco Mine he said, “The mine produced 360 kilograms of gold which was 14 percent higher than the comparative prior period’s production of 361 kilograms.
“The plant operated optimally, sustaining its strong milling performance and only losing its running to power outages which were experienced in the first quarter of the year.”
At Dalny Mine, he added that it performed well producing 232 kilograms of gold compared to 196 kilograms last year.
Chihota said the mine continued to work towards discovering more pittable ore resources and improved ore generation to a level where the mine is self-sufficient in terms of ore feed.
In base metal business, Chihota said the Empress Nickel refinery (ENR) remained under care and maintenance status, the smelter and other sections of the refinery were kept in operation in order to continue to preserve the assets and generate sufficient revenue to at least to meet the care and maintenance costs.
On diamond business the Group’s associate, Murowa Diamonds (Pvt) Limited continued to build and register remarkable growth.
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