RioZim sinks deeper into the red
LIVINGSTONE MARUFU
RioZim’s financial troubles deepened in the 12 months to December 2025 after the resources group reported a wider loss amid a sharp decline in gold production, persistent operational disruptions and ongoing funding constraints, Business Times can report.
The diversified miner has endured years of financial and operational challenges, leaving it trapped in a cycle of recurring losses and struggling to unlock value from its mining assets.
Foreign currency shortages, delayed payments from key debtors, prolonged power outages and ageing equipment continued to weigh heavily on operations, undermining production and profitability.
Total gold output plunged by 80% to 84 kilogrammes (kg) in 2025 from 428kg recorded in 2024, severely limiting the company’s ability to capitalise on favourable international gold prices.
“Total gold production fell to 84 kilogrammes (kg) in 2025 from the 428kg achieved in 2024, representing an 80 percent decline. As a result, the company was unable to fully benefit from favourable gold prices. The group recorded a net loss of ZiG739.1 million for the year, compared to a net loss of ZiG628.5 million in the prior period,” RioZim chairman Caleb Dengu said in the group’s financial statements for the year ended December 2025.
The collapse in production came at a time when gold prices were reaching historic highs, driven by geopolitical tensions, global economic uncertainty and strong demand from central banks seeking safe-haven assets.
RioZim’s performance was further complicated by a protracted legal dispute after the Zimbabwe Diamond and Allied Minerals Workers Union filed an application seeking to place the company under corporate rescue.
According to the company, the court action delayed implementation of critical components of its turnaround strategy and created uncertainty around its recovery plans and recapitalisation efforts.
The application was eventually dismissed after the reporting period, paving the way for management to proceed with its restructuring and recovery programme.
Despite the challenges, the board remains optimistic that improved funding arrangements, renewed activity at the Renco and Cam & Motor mines and supportive gold prices will help restore profitability.
A major obstacle remains the transition of ore at the flagship Cam & Motor mine from oxide to refractory sulphide ore, a development that requires an estimated US$35 million capital investment in new processing infrastructure.
Without the necessary capital injection, the company continued to grapple with frequent plant breakdowns, equipment failures and electricity shortages, all of which significantly constrained output.
While RioZim has struggled to remain viable, several competitors in the gold sector have reported record revenues and stronger earnings, supported by sustained capital investment and production growth.
The miner has found it difficult to attract external investors, while local financing options have largely been limited to expensive short-term borrowing facilities.
Nevertheless, management says it remains focused on securing fresh capital, strengthening operations and executing a turnaround strategy aimed at returning the company to sustainable profitability.
