RioZim narrows loss as gold production increases by 76 percent

RioZim narrowed its after tax loss from $6.9 million last year to $403 000 in the six months to June as the resources group registered a 40 percent growth in revenue driven by an increase in gold production.

Revenue grew from $23.1 million last year to $32.6 million, with an operating profit of $2.3 million from an operating loss of $2 million last year.

Gold production went up 76 percent to 775 kgs.

Production at the recently revived Cam and Motor mine peaked at 405 kg while Renco produced 370 kg.

Finance costs fell by 46 percent to $2.5 million compared to $4.7 million last year, and the company reported that it is current on all its obligations.

“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 current gold production and a further reduction in production costs,” said chairman Lovemore Chihota in a statement accompanying the results.-The Source

Editor's note: Cam and Motor Mine was closed in 1968 because it was no longer viable but it is now producing more gold than Renco.

(42 VIEWS)