Harare – Resources group, RioZim’s revenue for the year ended December 31, 2018 decreased by 15 percent to USD 75.4 million from USD 88.9 million realised in 2017, attributable to low production volumes in the second half of 2018 and the inability to complete planned capital projects due to foreign currency constraints, which could have sustained and increased production.
In the period under review, gold prices averaged USD 1247/Oz faring slightly better than the levels of USD 1242/Oz realised in 2017.
From a purely operations perspective, the Group was able to record an operating profit of USD 2.4 million which was 71 percent below the prior year’s operating profit of USD 8.1 million.
Overall, however, the Group exited the year with a net loss of USD 2.3 million against a net profit of USD 8.1 million achieved in the prior year, partly attributed to the costs incurred whilst operations were suspended for the gold business.
“Consequently due to the difficulties, gold production for the year regressed by 13 percent to 1.792 tons which is less than the 2.071 tons achieved in the prior year,” said Board Chairman L P Chihota in a statement accompanying the Group’s financial results.
In terms of EBITDA for the year, the Group realised a figure of USD 4.5 million which again reflected a 66 percent decline from the prior year’s EBITDA of USD 13.4 million.
In the period under review, the Group successfully moved from third- party contract mining and commissioned owner-mining at both its Cam & Motor and Dalny Mining sites thus not only significantly reducing operating costs but also, this made the Group’s mining operations wholly self-dependent.
The Group was also able to successfully cold-commission its flotation plant at Cam & Motor Mine which brought the mine one step closer to treating refractory ore in the area.
Thirdly, the Group signed a binding exclusivity and framework agreements with a renowned international player and investor in respect of its Sengwa Coal Mine which will see the commencement and ground-breaking ceremony at Sengwa Power Station Project in the near future.
Going forward, the Group said major projects include the construction of the BIOX plant and Cam & Motor Mine and the Sengwa Power Station project, adding that it is encouraged by engagements made with the Monetary authorities to mitigate the currency constraints and is confident that the projects will prevail and is, therefore looking forward to a conducive operating environment in 2019.
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