Riozim swings to $2.9 million profit

RioZim Limited after tax profit for the half year ended 30 June 2017 increased to $2.9 million compared to a loss position of $403  000 in the same period last year largely driven by improved revenues.

According to a statement of the financials, Group revenue grew 16 percent to $37.8 million from $32.6 million in 2016.

Chairman Lovemore Chihota said the growth was achieved notwithstanding the adverse weather which was experienced during the first quarter and resulted in extreme flooding across operations and frequent power outages.

“The acquisition of Dalny Mine which was concluded in the second quarter and the commissioning of Cam & Motor Mine contributed to the growth,” he said, adding that Murowa Diamond also reverted to profitability and contributed a share of profit of $583 000 compared to a share loss of $199 000 in the prior year.

The group recorded a profit before tax of $2.9 million, an increase of 822 percent compared to a loss before tax position of $403 000 last year.

Cumulative gold production increased 13 percent to 873 kg compared to 775 kg in 2016 same period comparable.

Renco mine produced 316 kg of gold, which was 15 percent lower than prior year’s 370 kg.

Cam & Motor mine produced 361 kg and Chihota said the mine was subject to various equipment failures resulting in significant loss of plant running time while Dalny mine produced 196 kg.

During the period under review, Empress Nickel Refinery remained under care and maintenance due to unavailability of matte.

However, other income generating activities at the plant generated $4.2 million which was sufficient to partially cover maintenance costs.

Production at Murowa Diamonds was also affected by the rains and development of new a mining plan but expansion of the plant increased the company’s share of associate profit to $583 000.

RioChrome is still in the preliminary stages of various projects which are expected to result in profitable utilisation of chrome assets.

This follows government’s decision to lift the ban on export of raw chrome.

RioEnery remains under feasibility and investor engagement stage. – The Source

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