RioZim Gold Output Down 54 Percent in 2024

Rutendo Mazhindu - ZimNow Reporter

Mining group RioZim Limited has reported a 54% drop in gold production for the year ended 31 December 2024, producing 428kg, down from 940kg the previous year, due to major operational setbacks at its key mining units.

The group’s audited financial results, released today and signed by Chairman S R Beebeejaun show that production at Cam & Motor Mine fell 63% to 185kg , from 499kg in 2023, while Renco Mine recorded a 45% decline, producing 243kg compared to 441kg in the prior year.

“Cam operated on one mill throughout the year after the second mill was decommissioned,” the company said RioZim .

“This significantly limited throughput and production. At Renco, plant reliability was affected by ageing infrastructure and persistent breakdowns.”

Revenue declined by 40% to ZWG475.5 million, down from ZWG795.7 million, while the group widened its net loss to ZWG628.5 million, from ZWG107.7 million in 2023.

This is despite a 25% rise in the average international gold price, which stood at US$2,389 per ounce, compared to US$1,915 per ounce the previous year.

The company also suffered setbacks in the fourth quarter, with industrial action at Renco Mine over salary delays and a complete production stoppage at Cam & Motor following mill failure.

RioZim said it is now engaged in an active capital raising initiative. “Discussions with potential funders are at an advanced stage,” said Beebeejaun.

“Stabilising production and restoring operational capacity remain a key priority for management.”

The company also reported a downturn in its diamond operations. Its associate, *RZM Murowa*, recorded a *13% drop in carat production* to *359,000 carats*, down from *414,000 the previous year. RioZim’s share of the associate’s loss stood at ZWG66 million*, compared to a negligible ZWG95,000in 2023.

No dividend was declared for the financial year.

The company remains under pressure from the *Zimbabwe Diamond and Allied Minerals Workers Union (ZDAMWU)*, which filed an application for *corporate rescue proceedings* now pending before the *High Court of Zimbabwe*.

Auditors *Forvis Mazars Zimbabwe represented by audit partner Lovemore Kamuzangaza* issued an unmodified audit opinionbut flagged three key audit matters impairment of assets, litigation exposure, and deferred tax assets.

RioZim said it will prioritise the *installation of a second mill at Cam & Motor* refurbishment of Renco’s plant, and upgrades to power infrastructure to mitigate frequent supply disruptions across its operations.