Auditors for the Zimbabwe Stock Exchange-listed resources outfit, Riozim Limited struck a pessimistic tone this week, casting doubts over the resources empire’s ability to continue operating.
They cited a deteriorating balance sheet and liquidity pressures during the year-ended December 31, 2025, for their red flags. The warning followed a difficult year in which RioZim’s liabilities exceeded assets by ZiG1,56 billion, while accumulated losses surged nearly 77% to ZiG1,67 billion.
The troubled miner continues to battle production constraints across operations.
Gold output fell 80% to 84 kilogrammes during the year, contributing to a 47,14% decline in revenue to ZiG251,32 million and preventing the company from fully benefiting from a price boom.
RioZim relied on borrowings and strategic funding arrangements. Auditors Forvis Mazars Zimbabwe highlighted the severity of the company’s financial position.
“We draw attention to Note 33 of the consolidated and separate financial statements, which indicates that the group incurred a net loss of ZiG739 067 000 for the year-ended December 31, 2025 (2024: ZiG628 473 000) and, as at that date, that the group’s current liabilities exceed its current assets by ZiG2 925 220 000 (2024: ZiG2 493 675 000),” the auditors said.
“The group’s total liabilities exceed its total assets by ZiG1 561 097 000 (2024: ZiG838 437 000) and the group had accumulated losses of ZiG1 666 849 000 (2024: ZiG944 460 000).”
In April, shareholders approved a US$39,4 million capital raise and asset disposals as management moved to strengthen the balance sheet and support a broader turnaround strategy. This week’s figures pointed to a severe liquidity squeeze, with current liabilities exceeding current assets by nearly ZiG2,93 billion.
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“As stated in Note 33, these conditions, along with the other matters as set forth in the note, indicate that a material uncertainty exists that may cast significant doubt on the group and company’s ability to continue as a going concern,” Forvis said.
“Nevertheless, the financial statements of the group and of the company have been prepared on a going concern basis, the validity of which is highly dependent on the ability of the company to obtain sufficient funding to support its operations.”
Auditors warned that if the going concern assumption proves inappropriate, significant adjustments would be required to the valuation and classification of the group's assets and liabilities.
The firm reported a sharp increase in interest-bearing borrowings, which rose to ZiG455,31 million at the end of 2025 from ZiG92,88 million a year earlier.
The company disclosed that it entered into a funding arrangement with FeiFan Mining (Private) Limited during the year, amounting to ZiG389, 7 million.
“The loan is interest-free and does not have a fixed maturity date, as recovery of the loan is linked to the cash flows generated from Renco Mine operations. The loan is secured on the assets of Renco Mine.
“The group also appointed FeiFan as a mining contractor at Renco Mine responsible for mining and extraction services, including resuscitation and stabilisation of Renco operations.”
The group also secured additional short-term funding from Takaoma Investments and Mountpack Investments amounting to ZiG25,98 million and ZiG41,57 million respectively.
“These borrowings are short-term, unsecured and payable on demand,” the company said.
The latest warning comes amid renewed efforts to place RioZim under corporate rescue.
Last month, shareholder Tendai Rwodzi filed an application seeking corporate rescue, arguing that the company was financially distressed and facing acute liquidity challenges that could affect its ability to meet obligations over the next six months.
The application followed an earlier attempt by the Zimbabwe Diamond and Allied Minerals Workers Union, which was dismissed by the High Court in February. Court papers filed in that matter indicated that RioZim's total debt burden had reached US$191 million.
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