Gold production down, diamonds up

HARARE - Gold production at Rio Zimbabwe Limited (Rio) slumped last year due to power cuts by the cash-strapped Zimbabwe Electricity Supply Authority (Zesa).

Rio Zim Managing Director, Josh Sachikonye, said gold production for the period under review had slumped 18 000 ounces from 22 762 as a result of regular power cuts. He said nickel and copper output was almost flat at about 8 600 tonnes for the period under review.

Diamond production at Murowa Mine, on the other hand, increased to 178 126 carats from 124 422 carats, Sachikonye said. Rio has forecast its revenue to skyrocket by an impressive 300 percent in the next three years. Last year’s revenue rose threefold due to very strong metal prices on the international market.

With a market capitalisation of US$58 417 261.50, Rio’s share price on the Zimbabwe Stock Exchange (ZSE) currently stands at US$2.00, having gone down by 2 cents last week. It is the second most heavily capitalised mining concern in Zimbabwe after coal producer Whange Colliery Company Limited (WCCL) which currently stands at US$114 804 559.68. Other mining counters on the bourse are Bindura Nickel Corporation (Bindura) and Falcon Gold Limited (Falgold).

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