Mining giant, RioZim is expecting to profitably utilize its chrome assets following government’s decision to lift ban chrome exports with the company now resuscitating its various projects in the country.
In its half year ending 30 June 2017 financial results, RioZim realised a 16% growth in revenue from US$32.6 million in the comparative period last year to US$37.8 million in 2017.
According to group chairperson, Lovemore Chihota, the growth was achieved notwithstanding the incessant rains, power outages and flooding experienced in the first quarter of 2017.
“Operationally, the incessant rains that were experienced in the first quarter affected mining operations nationwide including our own operations.
“These rains were also accompanied by frequent power outages and pit flooding and therefore created an environment that hampered mining activities. This was coupled with equipment challenges at the newly commissioned Cam & Motor plant in some critical sections of the new plant,” noted Chihota.
RioZim’s growth was largely as a result of the acquisition of Dalny Mine which was concluded in the second quarter and the commissioning of Cam & Motor Mine.
“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 US$583 thousand, compared to the share of loss from associate of US$199 thousand recorded in the comparative 2016 period,” said Chihota.
The Group recorded a profit before tax of US$2.9 million against a loss before tax of US$403 000 recorded in the same period last year.
According to Chihota, global economic trends remained subdued with the gold price going up by a marginal 1.4% from an average price of US$ 1 221/oz in 2016 to US$ 1 238/oz in 2017.
“Gold prices also remained volatile as a result of global geopolitical uncertainties. Base metal prices on the other hand remained flat throughout the reporting period.
“Locally, mining operations have had to begin to adapt to the current shortages of foreign currency reserves being experienced by the country which have resulted in inflationary pressures from local suppliers,” he said.