RioZim to increase ore production 25%

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RIOZIM Ltd sees ore production at its Renco Gold Mine up 25% in the first quarter of (Financial Year 2013), buoyed by development work at the mine.

Report by Our Staff  Writer
In a statement attached to its financial results for the half year to June, the company said it was evaluating the exploitation of slag dumps at its mines — Cam and Motor Mine and Renco.
Renco’s output was 8% up to 313 kg in the period under review. The company sees gold production of 100kg in the first quarter of FY13.

 
“Development work and a vamping project at Renco Gold Mine should see ore production increase by 25% to a target gold production of 100kg by the first quarter of 2013,” the company said.
RioZim said it was also reviewing supplier relationships to ensure goods and services were procured to the company’s best advantage.

 
Revenue rose marginally to US$30,9 million from US$30,06 million owing  to improved gold prices and increased output at Renco.

 
In the period under review, gold prices firmed by 12% whilst nickel and copper prices softened by 24% and 10% respectively.

 
However, operating costs at Renco rose by 11%. Operating profit improved marginally to US$1,4 million from US$1,3 million in the same period, helped by better cost management, improved grades and high productivity.

 
RioZim reported a US$4,9 million loss in the half year to June, from US$6,1 million in the same period last year.

 
Finance costs stood at US$6,3 million, from US$6,4 million in the same period last year.RioZim said Murowa Diamonds managed to break-even aided by improved sales in the same period.
Production at the group’s Empress Nickel Refinery was low given that they did not receive matte for processing in the second quarter.

 
“Despite low output, the refinery remained marginally profitable due to the sale of own finished metal stocks and significant savings in distribution costs,” the company said.

 
Energy costs, however, rose 44% in line with the increase in tariffs from 6 US cents to 9 US cents per kilowatt hour in the comparative period.

 
The termination of a toll refining agreement with Centametall saw the group owing US$13,6 million. Of the amount, the company paid US$7 million to Centametall.

 
The balance, RioZim said, had been accounted as a long term debt in its balance sheet.

 
RioZim was almost placed under judicial management after local banks became unnerved with the group’s failure to retire debts of US$50 million. But US$6,6 million raised  via a private placement earlier in the year and an additional US$5 million the group received from a rights issue largely helped the otherwise dim outlook of the company.

 
RioZim, however, had short-term borrowings of US$51 million as at June 2012. — RIOZIM Ltd sees ore production at its Renco Gold Mine up 25% in the first quarter of (Financial Year 2013), buoyed by development work at the mine.

 
In a statement attached to its financial results for the half year to June, the company said it was evaluating the exploitation of slag dumps at its mines — Cam and Motor Mine and Renco.

 
Renco’s output was 8% up to 313 kg in the period under review. The company sees gold production of 100kg in the first quarter of FY13.

 
“Development work and a vamping project at Renco Gold Mine should see ore production increase by 25% to a target gold production of 100kg by the first quarter of 2013,” the company said.
RioZim said it was also reviewing supplier relationships to ensure goods and services were procured to the company’s best advantage.

 
Revenue rose marginally to US$30,9 million from US$30,06 million owing  to improved gold prices and increased output at Renco.

 
In the period under review, gold prices firmed by 12% whilst nickel and copper prices softened by 24% and 10% respectively.

 
However, operating costs at Renco rose by 11%. Operating profit improved marginally to US$1,4 million from US$1,3 million in the same period, helped by better cost management, improved grades and high productivity.

 

 
RioZim reported a US$4,9 million loss in the half year to June, from US$6,1 million in the same period last year.

 
Finance costs stood at US$6,3 million, from US$6,4 million in the same period last year.RioZim said Murowa Diamonds managed to break-even aided by improved sales in the same period.
Production at the group’s Empress Nickel Refinery was low given that they did not receive matte for processing in the second quarter.

 
“Despite low output, the refinery remained marginally profitable due to the sale of own finished metal stocks and significant savings in distribution costs,” the company said.
Energy costs, however, rose 44% in line with the increase in tariffs from 6 US cents to 9 US cents per kilowatt hour in the comparative period.

 
The termination of a toll refining agreement with Centametall saw the group owing US$13,6 million. Of the amount, the company paid US$7 million to Centametall.
The balance, RioZim said, had been accounted as a long term debt in its balance sheet.

 
RioZim was almost placed under judicial management after local banks became unnerved with the group’s failure to retire debts of US$50 million. But US$6,6 million raised  via a private placement earlier in the year and an additional US$5 million the group received from a rights issue largely helped the otherwise dim outlook of the company.

 
RioZim, however, had short-term borrowings of US$51 million as at June 2012.
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