eBusiness Weekly
At Renco mine the decline was compounded by a month-long labour dispute that took place in the second quarter.
Critically, Renco mine’s production retreated 37 percent to 174 kilograms from 278 kg realised in the comparable period last year.
At Dalny mine, the group ended up suspending operations due to what it deemed unsustainable low grades from its pits.
This saw Dalny posting a steep fall in production to 8 kg of gold in the period against 105 kilograms that was produced in the comparative period when the mine was fully operational.
At Cam and Motor mine production closed the period at 211 kg which is a marginal growth from 181kg achieved in the comparative period.
Resultantly RioZim’s gold production for the half year retreated 30 percent to 393 kg compared to 564 kg achieved in the same period in 2021.
“The low gold production at Renco mine was a result of low milled tonnage arising, from severe power challenges during the first quarter and lost production due to a month-long labour dispute in the second quarter,” said Mr Saleem Beebeejaun the RioZim Chairman in the statement of the financials.
He however noted that the labour dispute at Renco was amicably resolved and industrial relations at the mine are now stable after the engagements and interventions by management.
According to Mr Beebeejaun the group’s subdued production was attributable mainly to the negligible production output at Dalny in the period under review coupled with under capacity utilisation at Cam and Motor after the discontinuance of the One Step operation to pave way for the resumption of mining activities at Cam and Motor.
He also acknowledged that the Dalny mine’s underground shafts were flooded during the period and would require an extensive dewatering exercise to bring them to mineable conditions.
However, the mine was put on full care and maintenance following to period’s end and some small-scale mining projects are being undertaken to sustain the care and maintenance costs.
In spite of the reduction in gold production, revenue increased due to the steep depreciation of the local currency against the United States dollar as the average exchange rate moved from US$1:$88 in the six-month period in the prior year to US$1:$176 at the time of reporting.
This saw RioZim’s revenue closing the period under review at $4,8 billion against $2, 6 billion recorded in the prior year.
