It recently reached an agreement to buy Falcon Gold’s Dalny Mine Complex, which has been under care and maintenance since 2013. The complex includes the mine, a gold processing plant, several surrounding gold claims as well as equipment and a mining compound.
RioZim believes the acquisition provides attractive exploration ground with potential to expand its gold operations.
Its share price has picked up 58.5 percent in the quarter to date and 166.3 percent so far this year to trade at 27.7 cents.
Bindura’s share price is up 241.7 percent this year — and 169.7 percent on a quarterly basis — to date and year to date respectively and is trading at 4.1 cents.
It reported a profit after tax of $1.2 million in the six months to September from a loss position of $3.4 million last year, driven by an increase in production.
In the same period, BNC raised nickel production by 23 percent from 1 555 tonnes last year to 1 866 tonnes and managed to contain costs. It also sold 3 464 tonnes of Nickel concentrate compared to 2 762 tonnes achieved last year, pushing revenue up nine percent from $20.6 million to $22.4 million.
Additionally, costs dropped by a third to $5 759 per tonne compared to $8 601 per tonne last year.
Construction of the smelter was 71 percent complete with $19.5 million having been spent but commissioning was now expected next year. However, analysts say Bindura needs the price of nickel to range between $12 000 and $13 000 per tonne to make it viable.
Nickel prices during the half year period averaged $9 541 per tonne compared to $11 787 last year.
Hwange Colliery’s financial results over the last five years reflects very poor performance while sales of Hwange’s major products: coal and coke have been dropping since 2012.
The coal miner reported a $28 million net loss for the six-month period to June 30. Subdued commodity prices also contributed to the fall in revenue.
Finance costs have been rising since 2014 as the company continues to finance its operations with borrowings as reflected by an increase in company’s debt from $10.8 million in the full year 2014 to $29.8 million in 2015.
In the half-year results released this year, the company reported a negative equity position of $106.32 million compared from a negative $6.88 million recorded in the same period last year on the back of persistent losses.
As a result of accumulated losses, the company has failed to honour its obligations and the company has so far lost litigation cases amounting to $44.9 million.
Continued next page
(94 VIEWS)
