HomeNewsIncreased output props up RioZim

Increased output props up RioZim

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RioZim Limited posted an increase in operating profit of $2,1 million from $443 000 for the six months due to increased output from both Renco and Empress Nickel Refinery and firm gold prices.

Gold production during the period under review rose to 9 321 ounces from 9 255 ounces in the same period last year with Empress Nickel Refinery metal production going up to 4 934 tonnes from 4 119 tonnes in 2010.

“The improved production is attributable to improved plant efficiencies arising from plant improvements completed over the period,” the company said in a statement.

Revenue for the group increased to $30,8 million from $29,9 million compared to same period last year.

During the period under review, output for Murowa Diamonds rose to 160 931 carats from 85 939 carats last year as prices increased in the second quarter resulting in the company returning to profitability.

The company said it would raise funds to resolve working capital issues and improve production at Renco Mine.

RioZim said operations at Empress Refinery had to be scaled back in July following a force majeure (an act of nature) declaration after unplanned maintenance became necessary on their smelting furnace.

“This will affect operations until mid-October. The opportunity is being taken to reduce stockpiles and set up the operation to allow a release of inventory with corresponding financial benefit, once normal operations resume,” the company said.

It said the restructuring of its debt would be concluded in the near future.

“Shareholders will be formally asked to approve various agreements in connection with this as well as an underwritten rights issue to finally stabilise the company’s financial situation,” the company said.

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