HARARE – Listed miner RioZim says the growth of its revenues by 16 percent to $37,8 million in the six months to June 2017 was as a result of the acquisition of Dalny Mine.
The group recently snapped up Dalny Mine from Falcon Gold for $8 million, with the resources firm paying $250 000 for the mine and $7,5 million towards the company’s loans.
RioZim’s chairperson Lovemore Chihota said Murowa Diamonds reverted to profitability in the period under review and contributed a share profit of $583 000 compared to a share loss of $199 000 in the previous corresponding period.
“The group also recorded a profit before tax of $2,9 million against a loss before tax of $403 000 recorded in the same period last year,” he said.
RioZim gold business saw production jumping by 13 percent to 873kg after Renco Mine, Cam and Motor and Dalny Mine contributed 361kg, 361kg and 196kg respectively.
Chihota noted that the improved performance came against the “adverse weather which was experienced during the turn of the rainy season and resulted in extreme flooding across all operations and frequent power outages”.
The group’s Empress Nickel Refinery (ENR) remained under care and maintenance in the first half due to the unavailability of matte.
“The refinery, however, carried out a number of income generating projects in order to preserve its integrity, as well as to offset some of its care and maintenance costs. In this regard, 33 tonnes of PGMs were produced and sold, thus generating revenue of $4,2 million which was sufficient to partially cover the care and maintenance costs,” he said.
Chihota noted that ENR remains a strategic resource for the group and the country due to its potential of generating significant amounts of foreign currency once its operations resume.
Following the government’s decision to uplift the ban on the export of chrome, Chihota said, RioZim was in the preliminary stages of various projects which will result in the profitable utilisation of chrome assets.
“The group has updated feasibility studies for both divisions of the project, namely the mining of coal and the power generation project. The group has had meaningful discussions with potential investors….we are also looking at solar energy and feasibility studies have commenced in this regard,” he added.