RioZim back in the red

HARARE - Zimbabwe Stock Exchange-listed mining concern RioZim Limited (RioZim) has recorded a net loss of $7,5 million in the half year to June 2014 due to high finance costs and unbudgeted for expenses.

Elisha Mushayakarara, the group chairperson  said lower production at Empress Nickel Refinery and Renco Mine and effects of lower gold and copper prices compared to the prior year resulted in RioZim’s turnover declining by 31 percent to $39,9m from $56,8m that was recorded in the same period last year.

“As a result, for the first time since the implementation of the group’s turnaround in April 2012, the group made an operating loss of $4,6m compared to an operating profit of $2,2m in 2013,” he said.

Mushayakarara noted that production at Renco was affected by the unusual storms which were experienced in Masvingo in the first quarter of the year.

The group’s diamond mine, Murowa reported a profit of $411 000, compared to a loss of $635 000 driven by improved throughput, processing of previously stockpiled gems and improved quality of the precious stones.

 

 

Comments (1)

It is sad to note this, yet in was once counted as one of the most vibrant companies in Zimbabwe. Well, there is hope since they have been boosted by investment. I hope that the management will be able to craft out a strategic plan to curb this loss as fast as possible. They should do so, with success, for we, as a nation, will not want to see another big company fall.

Business observer. - 29 August 2014

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