RioZim sees gold, diamond sparkle in H2
RESOURCE firm, RioZim Limited, is optimistic about a strong performance in the second half of 2023, banking on the expected positive impact of optimum usage of its newly installed BIOX and ore processing plants.
In the previous financial year, the group embarked on the construction of a BIOX plant at Cam and Motor Mine and a 500 tonnes per hour (TPH) crown jewel processing plant at the group’s associate, RZM Murowa mine.
The BIOX plant is used to process and destroy sulfide minerals, helping to expose gold for subsequent cyanidation, which increases the achievable gold recovery.
On the other hand, the 500 TPH plant is set to transform the RZM Murowa mine by enabling it to process more of its ore including low-grade ore.
The projects are part of the group’s phased plans to invest over US$450 million into the expansion of operations.
For the six months to June 2023, RioZim gold production surged to 417 kilogrammes from the 393kg attained in the same period last year. The performance was buoyed by improved volumes at Cam and Motor Mine, which was driven by the recently installed BIOX plant.
RZM Murowa mine saw an 84 percent growth in diamond production to 212 000 carats during the period under review from 115 000 carats achieved in the 2022 half-year, which was credited mainly to the recently installed 500TPH plant commissioned in the second half of the previous year.
“The stability and performance of the group’s two major projects, the BIOX Plant at Cam & Motor and the 500 TPH Plant at RZM Murowa, during the period provides confidence for a positive outlook in the second half of the year as the Group is set to continue sweating these two assets towards designed capacity.
“After successful completion and commissioning of the BIOX Plant in the prior year, the key focus in the current period was optimisation and ramping up of production to plant capacity,” said Mr Saleem Beebeejaun RioZim Limited board Chairman in a statement accompanying the half-year results to June 2023.
In terms of performance the group’s revenue for the period under review at $49,96 billion compared to $4,76 billion realised in the same period in 2022.
RioZim has since attributed the increase in revenue to improved gold output and exchange rate variations experienced over the period.
Metal prices were favourable during the period as the gold price rose by four percent to an average price of US$1 910 per ounce from US$1 834 per ounce in the same period in the prior year. However, the group’s operating cost base remained elevated, given the growing cost of inputs leading the group to record a net loss of $8,7 billion.
Like many other entities, the group remained afflicted by power supply challenges as they reduced the plant’s running time.
As a remedy to the power outage menace, Rio Zim managed to install backup power generators to mitigate the production losses albeit leading to increased cost of production.
According to RioZim, the dynamic and challenging macro-economic environment remains an impediment to business growth and continues to have a negative effect on the operating performance of the group.
-herald
