DIVERSIFIED miner RioZim reported sharp declines in production and deepening losses in 2024, prompting talks with a potential investor over a planned US$20 million equity injection to stabilise operations.
The Zimbabwe-listed mining group, founded in 1956, operates across gold, nickel, copper, diamonds and coal. Results for the year ended Dec. 31, 2024 show significant pressure on output and profitability.
Chairman Saleem Beebeejaun said operational disruptions were the main drivers of the decline. These included prolonged industrial action at the Renco gold mine and frequent equipment breakdowns at the Cam & Motor mill.
Gold production fell 54% to 428 kilograms in 2024, down from 940 kilograms the previous year, he said.
Base-metal operations remain halted, with the Empress Nickel Refinery under care and maintenance. Negotiations to secure raw material supplies are still ongoing.
Diamond production at RioZim’s Murowa associate also weakened. Output dropped 47%, resulting in a 13% decline in carat production to 359,000.
The group reported a comprehensive loss of ZWG 820 billion, compared with a loss of ZWG 85 billion in 2023. The deterioration was largely driven by increased foreign-exchange losses.
Beebeejaun said the company is in advanced discussions with an investor willing to inject US$20 million in working capital. The funding would be provided in exchange for a majority equity stake, subject to due diligence and regulatory approvals.
He said RioZim is also considering additional funding options to revive stalled energy projects. Progress, however, remains on hold until financing is secured.
Analysts say RioZim’s challenges reflect broader pressures across Zimbabwe’s mining sector. Ageing infrastructure, persistent power outages and labour disputes continue to weigh on production.
Similar constraints have also been cited in the artisanal and small-scale mining sector, where limited access to finance and energy continues to affect productivity and environmental standards, according to development programmes working with miners.
The company warned shareholders to exercise caution when trading its securities. It said further updates would be issued as discussions with investors progress.
