RioZim Q1 revenue up 43%

ZIMBABWE Stock Exchange-listed mining concern RioZim Limited’s operating profit for the first quarter was up 117% to $390 million compared to a loss of $2,3 million on the back of improved revenue, the company has announced.

Report by Tarisai Mandizha

During the period under review, turnover increased by 43% to $22,655 million from $15,808 million last year despite facing an industrial action at the start of the year.

Speaking at the company’s annual general meeting yesterday, RioZim chief executive officer Ashton Ndlovu said the group still managed to achieve a 43% growth in turnover over last year quarter as a result of metal sales and revert sales at Empress Nickel Refinery.

“Disruptions which lasted for over four weeks ruined operations and affected the results of the first quarter resulting in lost revenues of approximately $4,5 million,” said Ndlovu.

Ndlovu said while the company’s performance improved during the period under review, it continued to be saddled with a $91 million debt.

Local banks, which the company owes $60 million, are the major creditors. RioZim group treasurer Bhekinkosi Nkomo said the group had managed to reduce
the amount owed to banking institutions to $42 million.

Nkomo said the company was expecting to generate $8,6 million cash in total and $7,7 million before the end of year from the sale of reverts to Xstrata.

Ndlovu said the group was in the process of negotiating with banks to return the remaining loans to tenure of between 24 to 36 months.

The RioZim boss added that plans are underway to cut more jobs in a bid to improve the company’s efficiency.

“At the moment there are 33 employees down from 113 employees.

“This number will be reduced to 20,” said Ndlovu.

He said the approved retrenchment exercise completed had resulted in cost savings of approximately $2 million per year.

11 Responses to RioZim Q1 revenue up 43%

  1. Patrick Rusike May 31, 2013 at 7:02 am #

    Tarisai wenyu uyu arikuvarwa nemaFigures!

    • Bill1977 May 31, 2013 at 8:29 am #

      Agreed, the editors should also do sense check, $390 million is a big number even on the New York Stock Exchange.

      Otherwise good turnaround from RioZim, chivhurai migodhi vanhu wawane mabasa.

  2. chief chinamhora May 31, 2013 at 8:31 am #

    i dont get it, “at the moment there are 33 employees from 113 this number will be reduced to 20 “. so posting a growth rate of 43% with 33 man force…amazing

  3. LOLO May 31, 2013 at 10:01 am #

    The story was not propoerly written. who can operate mines and smelters with only 20 people? the reporter did a shoddy job, and the editor didnt even check! maybe he meant at the headoffice, but still the story was poorly constructed..and the numbers dont make any sense!

  4. manomano May 31, 2013 at 10:58 am #

    This reporter certainly has problems with figures and the editor was certainly sleaping on duty.

  5. peter chitovah May 31, 2013 at 12:08 pm #

    reporter as accountants we also read your articles. what a bag of confusion? you mean OP of 390m against revenues of 22m hey??? all figures here do not have a health accounting relationship. redo and resubmit

    • jonathan May 31, 2013 at 12:31 pm #

      Resubmit!!! Asking dofo ramakoko to resubmit???

  6. Chief Accountant May 31, 2013 at 1:57 pm #

    Turnover of $22m giving an OP of $390m ;reporter and editor sleeping on duty.on reduction of head count i just hope the mines and refineries are now highly automated or maybe they are now outsourcing most functions this story is incomplete .,,,,,ma auditors batai vanhu!!!!!!!!

  7. Guruswa May 31, 2013 at 3:18 pm #

    Maybe the powers that be need to revoke AIPPA and deal with the reckless journo

  8. tinaye munhu May 31, 2013 at 9:10 pm #

    Ashton is being used. Retreach and employ vehukama with more packs

  9. Falcon June 3, 2013 at 11:45 am #

    The best way to get good economic reports out to the public is research and more addition why not rope in a resident economist to tag along for the interview? Otherwise the paper risks being taken for a joke, which is harldy necessary given the hard work put into making it the leader it has become. I think the Editorial management has to take on board views expressed on their reportage by the people taking time to write on these pages..This is invaluable feedback they are getting from their readers as a thank you for providing an alternative voice, please dont abuse it.

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