JUST IN: RioZim full year gold output drops 27%

08 Apr, 2021 - 10:04 0 Views
JUST IN: RioZim full year gold output drops 27%

The Chronicle

Oliver Kazunga, Senior Business Reporter

DIVERSIFIED mining group, RioZim, recorded a 27 percent decline in gold output to 1,21 tonnes in the financial year ended December 2020 due to low-grade ore processed throughout the year.

In the 2019 financial year, the company produced 1,66 tonnes of the yellow metal.

In a statement accompanying financial results or the period under review, RioZim said: “The company’s gold production declined by 27 percent from 1,66 tonnes achieved in the prior year to 1,21 tonnes. Throughout the current year, the group’s flagship operation Cam & Motor Mine carried out mining activities from the nearby One Step Mine hauling low grade ore to the Cam & Motor plant for processing.

“This resulted in a drastic fall in gold production compared to the prior year when the mine processed higher-grade ore from its Cam pits.”

The company noted that gold pricing maintained a growth trend throughout the year recording a 27 percent growth from 2019’s average of US$1 395 per ounce, to an average price of US$1 765/oz in 2020. This counteracted the impact of lower production volumes.

Revenue generated during the period was ZWL$3,1 billion compared to ZWL$577,1 million in 2019. The exponential increase in revenue was a direct result of the depreciation of the local currency against the US dollar.

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