RioZim narrows losses on debt restructure, gold mining

RioZim narrows losses on debt restructure, gold mining

DIVERSIFIED mining concern, RioZim Limited, reported Wednesday that its loss for the year ended December 31, 2015 narrowed to $8,8 million from $18,5 million in the comparable period a year ago as the company debt was restructured.

Gold production from the recently opened Cam & Motor Mine also boosted performance, with trading profit from the unit topping $5,3 million.

However, Empress Nickel Refinery )ENR was put under care and maintenance due to the non-delivery of matte from the sole supplier.

Barring ENR’s US$9 million loss, RioZim could have recorded an operating profit of US$8,9 million in the period.

On the overall, RioZim’s revenues fell 14 percent to $56,5 million from $65,9 million in 2014.

Increased throughput from Cam and Motor Mine, which started operating in April last year, pushed the group’s total gold output to 1,2 tonnes in 2015 from 648kgs in 2014.

The company expects to commission a new gold processing plant soon.

There was reportedly little mining at Murowa diamond mine following the divesture of Rio Tinto Plc.

RioZim has a 22 percent interest in the gem-producing mine.

But a new board has since been appointed.

It is believed that Murowa will return to profitability this year.

During the year, the Zimbabwe Asset Management Company (Zamco), a unit of then RBZ, restructured the company $33,3 million debt into a long-term instrument.

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