RioZim loss after tax drops

RIOZIM has reduced its loss after tax to $403 000 in the half year ended June 30, 2016 from $6,9 million recorded during the same period last year. During the period under review, the resource group also registered a 40 percent growth in revenues buoyed by an increase in gold production. “In the second half of the year the group will focus on completion of the Cam and Motor plant project, which is expected to result in a two-fold increase in gold production and a further reduction in production costs,” RioZim chairman, Mr Lovemore Chihota said in a statement accompanying the company’s financials. He indicated that RioZim revenues grew from $23,1 million last year to $32,6 million, with an operating profit of $2,3 million from a $2 million operating loss recorded last year. Gold production went up 76 percent to 775kg. Production at Cam and Motor Mine peaked at 405kg while Renco produced 370kg. Finance costs fell by 46 percent to $2,5 million compared to $4,7 million last year while the resource group was current on all its obligations. “The initiatives to cut production costs at the end of 2015 improved the blended all in cost of production in the first half of 2016 by 19 percent. “We’re continuing to cut costs and believe we can reduce them by another 15 percent on a blended basis,” said Mr Chihota. On the outlook, he said the group’s focus in the second half would be on the completion of the Cam and Motor plant project which is expected to be commissioned during the fourth quarter. It is believed that the successful completion of the project is expected to result in the gold output at Cam and Motor increasing twofold and production costs decreasing further. “The group will continue its cost reduction drive and expansion of the gold business through exploration and potential acquisitions. “While securing matte and resumption of operations at ENR is of high priority, the current depressed base metal prices remain a factor that continues to be of concern to the base metal industry,” he said.

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