RioZim loss deepens as gold output plunges 80%

Published: 8 hours ago

Diversified mining group RioZim has reported a widened loss for the year ended December 2025, driven by a steep collapse in gold production, persistent operational challenges and ongoing funding constraints.

The company's financial results show that gold output fell dramatically from 428 kilogrammes in 2024 to just 84 kilogrammes in 2025 - an 80% decline that severely limited its ability to benefit from strong global gold prices.

According to RioZim chairman Caleb Dengu, the sharp production drop significantly weakened the group's financial performance.

"Total gold production fell to 84 kilogrammes (kg) in 2025 from the 428kg achieved in 2024, representing an 80 percent decline," he said. "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."

The company's struggles were compounded by foreign currency shortages, delayed payments from debtors, prolonged power outages and ageing mining equipment, all of which continued to disrupt operations.

The collapse in output came at a time when global gold prices were reaching record highs, supported by geopolitical tensions, economic uncertainty and strong central bank demand for safe-haven assets.

Despite the favourable pricing environment, RioZim has remained unable to match industry performance, with competitors in the sector reporting stronger revenues and higher production volumes due to sustained investment.

The group also faced legal and governance disruptions after the Zimbabwe Diamond and Allied Minerals Workers Union applied for corporate rescue proceedings, arguing that the company required structured intervention to stabilise operations.

The legal process delayed parts of RioZim's turnaround strategy, although the application was later dismissed, allowing management to proceed with restructuring plans.

The company says future recovery depends on securing fresh capital to upgrade key infrastructure, particularly at its flagship Cam & Motor mine, where ore is transitioning from oxide to refractory sulphide — a shift requiring an estimated US$35 million investment in new processing facilities.

Without the necessary funding, the miner has continued to experience plant breakdowns, equipment failures and electricity supply constraints, further limiting production capacity.

RioZim remains focused on its turnaround strategy, which includes revitalising operations at the Renco and Cam & Motor mines and securing new investment to restore long-term profitability.

However, access to affordable financing remains limited, with local borrowing options largely restricted to high-cost short-term facilities, while foreign investors have shown caution amid ongoing operational risks.

Despite the challenges, management says it remains committed to stabilising operations and returning the group to sustainable production levels in the medium term.
- Business Times

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