EMBATTLED miner RioZim Limited has widened its loss-making position to ZiG739,06 million for the financial year ended December 31, 2025, as revenue declined by 47,14%.
The net loss compares with ZiG628,47 million recorded in the prior year, reflecting deepening financial stress at the resources group.
Since 2024, RioZim has faced severe liquidity challenges driven by rising production costs, persistent power cuts, exchange rate volatility, frequent plant breakdowns and governance concerns.
These pressures, combined with mounting debt, pushed the company’s obligations to at least US$191 million, according to a High Court application filed on April 28, 2025, by the Zimbabwe Diamond and Allied Minerals Workers Union, which sought corporate rescue.
Although the High Court dismissed the application in January, the Supreme Court overturned the decision in an order dated February 17, 2026.
Corporate rescue attempts have since resurfaced after shareholder Tendai Rwodzi filed a fresh court application last month, alleging that the company was in financial distress and facing severe liquidity constraints that could compromise its ability to meet obligations within the next six months.
In its financial results for the year ended December 31, 2025, RioZim chairperson Caleb Dengu said operational challenges significantly affected production.
“The group’s gold operations at Renco and Cam & Motor remained largely on reduced activity during the year as management prioritised recapitalisation initiatives,” he said.
“Renco Mine resumed production in the last quarter, under a contract mining arrangement with a third-party producing 84kg of gold, which constituted the group’s only production for the year.”
He added that Cam & Motor recorded no production during the period.
“Total production declined by 80%, from 428kg in 2024 to 84kg in 2025. As a result, the company was unable to fully benefit from favourable gold prices,” Dengu said.
“The group recorded a net loss of ZiG739,1 million for the year, compared to a net loss of ZiG628,5 million in the prior period.”
Revenue fell sharply to ZiG251,32 million from ZiG475,51 million in the previous year, while administrative expenses rose to ZiG595,22 million from ZiG488,11 million.
“Nevertheless, the strategic partnerships concluded during the year have positioned the company on a firmer footing for recovery,” Dengu said.
He added that the group remains focused on restoring operational stability and rebuilding its core gold production capacity following new funding and operational arrangements.
Shareholders recently approved US$39,4 million (ZiG1,05 billion) in fresh funding and asset sales at the company’s extraordinary general meeting held on April 22, aimed at strengthening its strained balance sheet.
Dengu also noted that the recovery of the group’s gold assets is supported by strong global prices, which have continued to rise, reaching approximately US$5 000 per ounce in 2026.
“The board believes that the combination of robust funding arrangements, renewed operational activity at both Renco and Cam & Motor, and favourable gold prices will drive the group’s recovery and return to profitability,” he said.0newsday
