RioZim digs deeper into crisis as gold output falls

RioZim’s troubles sank to new depths last year, as gold output plunged 54%, at a time rivals are cashing in on record-high gold prices.

The company faces growing pressure from unions calling for it to be placed under corporate rescue, and is pinning its hopes on talks with new funders, said to be a consortium of Chinese investors.

RioZim’s just-released financial results for 2024 highlight the depth of the crisis facing the miner, once one of Zimbabwe’s largest gold producers.

Last year, the company produced only 428 kg of gold, a sheer drop of 54% from the already low production of 940 kg in 2023.

The company runs Renco Mine in Masvingo, as well as Cam & Motor and Dalny mines in Kadoma.

With 428kg, RioZim now produces less gold in a year from its mines than peers produce in a quarter.

Caledonia produced 541kg in the first quarter of 2025 from its single mine, Blanket. Padenga’s Dallaglio produced 620kg from its two mines over the same three months.

A lengthy strike at Renco mine “due to delayed payment of salaries” affected production, while work stopped at Cam & Motor “due to persistent mill breakdowns”. Says RioZim: “Cam operated on one mill throughout the year after the second mill was decommissioned.”

While gold is booming and helping its peers to record profits, RioZim says “the group did not benefit from the price upside due to low production.”

Renco’s gold production fell by 45% to 243kg from 441kg, while Cam & Motor mine recorded 185kg, down 63% from 499kg in 2023.

The diamond business, which has fared better than gold operations in the past, is also in crisis. Murowa produced 13% fewer diamonds at 359,000 carats, blamed on outdated equipment.

“The current fleet (of equipment) has passed its economic life.

“The low plant performance resulted in the Mine decommissioning all its heavy mobile equipment during the year, as it became unsustainable to run due to persistent breakdowns,” RioZim says.

NewZWire