RioZim widens loss to ZWG300m
ROBIN PHIRI
Embattled resources firm, RioZim Limited has recorded a net loss of ZWG300.6m for the six months to June 2025, widening from a loss of ZWG165.7m in the same period last year, as production constraints and years of undercapitalisation weighed heavily on the company’s performance.
According to company Chairman Caleb Dengu, the first half of the year was “particularly challenging,” with significantly reduced output across all mining operations.
“These operational difficulties stemmed from persistent undercapitalisation over the past three years, which constrained our ability to sustain production and invest in critical infrastructure,” he said.
Despite the setback, Dengu said the group’s prospects have improved following a comprehensive restructuring exercise and a successful capital raising transaction concluded after the reporting period, a turnaround effort that included the appointment of a new board in July 2025, which has already begun delivering positive results.
“The Board initiated a comprehensive restructuring exercise, which included the appointment of a new Board. This strategic shift has already yielded tangible results. Notably, Renco Mine was successfully reopened, and the jobs of more than 1,000 workers have been secured. Plans to fully restart operations at Cam & Motor Mine are well underway, with full production expected before year-end,” he said.
Although the average gold price rose sharply to US$3,075 per ounce, up from US$2,165 a year earlier, RioZim was unable to fully benefit from the surge due to low production volumes. On the global stage, gold closed the period at US$3,302 per ounce, a 24% increase from the start of the year.
Dengu noted that government reforms aimed at stabilising the economy have come in handy to help improve business confidence and manage inflationary pressures, while a relatively stable ZWG contributed to better cost control.
The chairman said RioZim’s focus during the period was on securing new funding and positioning the business for recovery.
“The strategic investor transaction has since been finalised, providing the capital needed to revitalise operations and restore production levels,” he said.
RioZim’s associate, RZM Private Limited (Murowa), also faced difficulties due to depressed diamond prices, posting a share of loss of ZWG28m, compared to a profit of ZWG5.6m in the previous year. Murowa has since begun in-pit mining to improve ore grades and carat recovery — a move expected to enhance profitability.
Dengu expressed optimism that the combination of fresh capital, a firm gold price, and resurgent production at Renco and Cam & Motor will drive the group back to profitability.
