RioZim records $2,9 million after tax profit
Harare – Diversified miner, RioZim achieved a $2. 9 million net profit for the half year ended June 30, 2017 on the back of improved revenues, compared to a loss of $403 000 recorded in the same period last year.
Group chairman Lovemore Chihota said despite several challenges experienced during the period, revenue grew by 16 percent to $37.8 million from $32.6 million in the prior comparative period.
“The acquisition of Dalny mine which was concluded in the second quarter and the commissioning of Cam & Motor Mine contributed to the growth,” he said.
“I am also pleased to advise that during this period, Murowa Diamonds reverted to profitability and contributed a share of profit in the sum of $583 000, compared to the share of loss from associate of $199 000 recorded in the comparative 2016 period.”
On operations, Chihota said RioZim upped cumulative gold production by 13 percent to 873 kg’s from 775 kg’s produced during the same period in 2016.
Production in the first quarter, he said, was negatively affected by the heavy rains experienced early this year, resulting in flooding across all operations and frequent power outages.
Renco mine contributed 316 kg’s in the period under review, 15 percent short of last year’s production of 370 kg’s.
Cam and Motor mine produced 361 kg’s, while Dalny came through with 196 kg’s.
Chihota said the Empress Nickel Refinery remained under care and maintenance, but carried out a number of income generating projects to offset some of its care and maintenance costs.
“In this regard, 33 tonnes of PGMs were produced and sold, thus generating revenue of $4. 2million which was sufficient to partially cover the care and maintenance costs,” he said.
On the group’s chrome business, Chihota said RioZim was in the preliminary stages of various projects that will result in the profitable utilisation of its chrome assets.
Going forward, RioZim would focus on intensifying investment in exploration and development in order to increase production.
“The group’s efforts will also be channelled to achieving cost containment across all operations in line with the goal of generating positive cash flows,” he said. – New Ziana.