A gold mine operating under Rio Zim has recorded a 37 % decline in production owing to numerous breakdowns because of its ageing plant.
This was revealed in the group’s quarter ending September 2020.
“Dalny Mine suffered multiple breakdowns from its ageing plant, which negatively affected production throughput. Consequently, production fell by 37% compared to the same period in 2019,”the company said.
Another of its gold mine, Cam and Motor, was affected because of low grades leading to production dipping by 8 %.
“Cam & Motor Mine continued with processing low grade ores from its One Step Mine throughout the quarter. Resultantly, the Mine’s production went down by 8% from the same period last year when the Mine produced from high grade ores at its Cam pits,” added the company.
According to Rio Zim , delays of payments by the country’s apex bank has also exacerbated the company’s woes.
“The delays on the payment of the Company’s gold receipts by the Reserve Bank of Zimbabwe (RBZ), carried on throughout the quarter which severely strained the working capital and cash flows of the Group and greatly hampered production.
“The Company continues to engage the RBZ for a resolution of its delayed receipts,” Rio Zim states.
It also says though the interbank exchange rate is stable , prices of raw materials have not gone down.
“Even though the foreign currency auction system has played a significant role in stabilising the interbank exchange rate, prices of materials continued to trade at a premium to this rate,”.
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