RioZim bounces back with ZiG1,3bn net profit

Business Reporter

DIVERSIFIED resource firm RioZim Limited has disposed of its 22,2 percent stake in associate company RZM Murowa for ZiG600,51 million, generating a gain of ZiG303,7 million as part of a strategic drive to reduce its debt burden, the company said in the half-year financial statement to June.

Murowa’s ongoing operational and funding challenges prompted the decision to exit the diamond mining firm, resulting in zero diamond production during the period under review and a share loss of ZiG39,6 million attributed to RioZim before the investment was derecognised.

Disposal proceeds were set off directly against existing loan balances owed to Murowa, the company said.

RZM Murowa is a Zimbabwean diamond producer operating in the Mazvihwa area near Zvishavane, Midlands Province.

Originally developed in the late 1990s and commencing commercial production in 2004 under global mining group Rio Tinto, the operation transitions between open-pit and underground mining across three main kimberlite pipes.

Renowned for producing high-value, gem-quality diamonds, Murowa historically served as one of the country’s primary private diamond mines alongside state-driven operations in Marange.

During the first half of the year, RioZim recorded a net profit of ZiG1,3 billion for the half-year ended June 30, 2026, recovering from a loss of ZiG300,65 million during the same period in 2025.

The financial turnaround followed a return to full production operations and higher international gold prices.

The group produced 213 kg of gold during the six months, up from minimal output in the comparative prior-year period.

Gold prices averaged US$4 689 per ounce for the half-year, compared with US$3 075 per ounce in the same period of 2025.

Total revenue increased to ZiG 299,9 million from ZiG21,64 million recorded in the prior-year period.

In addition to the equity sale, the company recorded an associate loan write-off of ZiG 935,85 million in other income. RioZim also generated ZiG 143,13 million from the sale of non-core mining claims, including the One Step Gold claims, Mutandahwe Tungsten claims, and Murowa-related diamond claims that were no longer aligned with its strategic focus.

Operationally, installation of a second mill commenced at the Cam & Motor mine to expand processing capacity before the end of 2026.

At the Renco mine, the company initiated open-pit trial mining and heap-leaching projects to support gold production amid declining underground ore grades.

To support ongoing operations, RioZim entered into new capital arrangements. Non-party entity Feifan Double Investments provided ZiG 412,31 million in funding for Cam & Motor mine under a mining contract arrangement.

Feifan Mining advanced ZiG274,92 million under a separate contract mining arrangement for Renco mine.

Independent auditor Forvis Mazars issued an unqualified review conclusion with a material uncertainty related to going concern.

The group’s current liabilities exceeded its current assets by ZiG1,23 billion as of June 30, 2026 and total liabilities exceeded total assets by ZiG258,43 million.

Source: RioZim bounces back with ZiG1,3bn net profit – herald

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