HomeNewsRioZim narrows loss after adjustments

RioZim narrows loss after adjustments

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Zimbabwe Stock Exchange-listed concern RioZim Limited has readjusted its financial results showing after-tax loss narrowing to $12,2 million for the full-year ending December 31 2011 from $16,3 million.

Revenue for the period was up $54,5 million from $47,8 million driven by a rise in revenue and a cut in expenses.

In its adjusted and reclassified financials for the period, RioZim announced that the mining group had also terminated a toll refining agreement to pave way for a settlement agreement under which the group will be the exclusive owner of all stock held, less the settlement amount.

RioZim last month announced plans to convene an annual general meeting (AGM), three months after the initially scheduled meeting was postponed after it emerged the company’s financial statements were in shambles.

The mining group said its 56th AGM is now slated for August 17 at the company’s head office in Harare, following the release of revised financials.

The meeting will, among other issues, consider the financial results and the re-election of non-executive directors.

“Subsequent to the year end, management and directors became aware of an error in the accounting treatment for certain metals delivered to third parties.

“These deliveries were previously accounted for as sales of the group’s own inventory,” reads a statement accompanying the results.

“However, the metals delivered were third party inventory and not the inventory belonging to the group.

“Accordingly the error has been corrected by way of restatement of the 2009 and 2010 comparatives . . . ”

Meanwhile, there were reports that the mining group was seeking $200 million in the coming year as it planned to list RioGold offshore.

New RioZim chairperson Harpal Randhawa told our sister paper the Zimbabwe Independent last month that Rio Gold was in discussion with a number of other local gold companies to consolidate assets and build a company with a critical mass of production assets, advanced stage projects and blue-sky potential.

RioZim owes its creditors, mainly local financial institutions, in excess of $50 million amid indications that the mining company has already started repaying the banks.

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