Source: RioZim output roars back after mine restart -Newsday Zimbabwe

RIOZIM Ltd has restarted operations at its Cam & Motor Mine and reported a sharp increase in output at its Renco Mine, as the resources group begins to recover from a prolonged production slump.

The company said gold output at Renco Mine rose 1 433% in the first quarter of 2026 compared with the same period last year, while Cam & Motor produced its first gold pour on June 2 after resuming operations in May.

RioZim said the restart of Cam & Motor followed a pit dewatering exercise that began in November 2025 and procurement of mining equipment and spares starting in March 2026. Blasting resumed in April.

Renco Mine, which resumed operations in October 2025, produced 92kg of gold in the first quarter of 2026, compared with 6kg in the prior-year period, the company said.

The miner said the operational improvements follow a difficult 2025 financial year in which total gold output fell 80% to 84kg, due to suspended production at Cam & Motor and delayed recovery at Renco.

To support the turnaround, RioZim raised funding and entered contract mining arrangements, pushing borrowings up nearly 390% to ZiG455,3 million.

The company reported a net loss of ZiG739,06 million for the year ended December 31, 2025, widening 18% from ZiG628,47 million a year earlier, while revenue fell 47,1%.

RioZim has faced liquidity constraints since 2024, driven by power shortages, rising costs, foreign exchange instability and equipment breakdowns.

The company has also cited governance and operational challenges, with debt estimated at more than US$191 million, according to court filings by the Zimbabwe Diamond and Allied Minerals Workers Union in 2025.

Auditors have warned there is material uncertainty over the company’s ability to continue as a going concern due to persistent losses and liquidity pressures.

RioZim said an application for corporate rescue filed in April 2026 is being opposed and remains before the High Court.

Shareholders in April approved US$39,4 million in capital raising and asset disposals as part of efforts to strengthen the balance sheet.

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