RioZim says its turnaround efforts are beginning to gather pace after securing new funding and restarting operations at key mines, despite reporting a wider loss for the year ended 31 December 2025.
The diversified mining group posted a loss of ZiG739.1 million for the period, compared with a loss of ZiG628.5 million in the previous year.
Revenue also declined sharply to ZiG251.3 million from ZiG475.5 million, while gold production plunged by 80 per cent to just 84 kilogrammes from 428 kilogrammes.
In the company’s annual financial results, chairman Caleb Dengu said RioZim was moving beyond a prolonged period of survival and was now focused on rebuilding its productive capacity.
“Operational activity remained subdued for most of the year as the company undertook comprehensive due diligence processes in evaluating potential strategic partnerships and investment opportunities,” Dengu said.
He added that those efforts had resulted in a funding agreement and contract mining arrangement with an external partner, allowing production to resume during the final quarter of the year.
Production challenges were most evident at RioZim’s flagship gold operations, Renco Mine and Cam & Motor Mine, where management prioritised recapitalisation initiatives over increasing output.
The company secured a funding package from FeiFan Mining, which advanced loans with a total nominal value of ZiG389.7 million during the year.
“The group entered into a loan funding arrangement with a third party, FeiFan Mining. The total nominal value of the loan advanced during the year amounts to ZiG389.7 million,” Dengu said.
Mining operations at Renco resumed in September 2025 under a contract mining agreement with FeiFan. Following the restart, the workforce at the mine increased by 45 per cent.
The funding injection has provided some relief for RioZim, whose financial position remains strained. Total liabilities rose to ZiG4.26 billion, exceeding total assets of ZiG2.7 billion and leaving the group with negative equity of ZiG1.56 billion.
Cash inflows from financing activities reached ZiG447 million after the company secured additional borrowings to support operations and rehabilitation programmes.
Outside its gold business, RioZim continued efforts to unlock value from non-core assets. Chrome mining activities resumed in Darwendale through third-party operating partnerships, while the Empress Nickel Refinery remained under care and maintenance as management sought potential investors.
The group’s associate company, RZM Murowa, also weighed heavily on financial performance. RioZim recorded a share of loss amounting to ZiG303.4 million from the diamond producer as weak global diamond prices led to lower production levels and scaled-back operations.
Despite the setbacks, management remains confident that the business is positioned for recovery.
“The board believes that the combination of robust funding arrangements, renewed operational activity at both Renco and Cam & Motor, and favourable gold prices will drive the group’s recovery and return to profitability,” Dengu said.
With international gold prices remaining close to historic highs and mining operations gradually returning to normal, RioZim’s prospects are likely to depend on management’s ability to deliver a long-awaited operational turnaround.
Meanwhile, shareholders have approved an extensive recapitalisation plan involving asset disposals, debt restructuring and new financing measures aimed at stabilising the business.
As part of the programme, RioZim plans to sell non-core properties in Nyanga and Newlands, Harare, for no less than US$165,000 and US$245,000 respectively.
The company is also moving ahead with plans to dispose of the Mtandahwe Copper and Tungsten mining claims for a minimum of US$3 million, while the One Step gold claim is expected to fetch at least US$1 million.
In addition, management has received approval to secure a loan facility of up to US$35 million backed by company assets.
Shareholders also endorsed a proposal to restructure a US$60.8 million debt owed to joint-venture partner RZM Murowa. Under the arrangement, RioZim will surrender its 22.2 per cent shareholding in the company for US$23.9 million.
The miner will further transfer four diamond mining claims currently utilised by RZM Murowa in exchange for US$4.6 million, while the remaining US$32 million debt balance will be written off.
The measures form part of a broader strategy to strengthen RioZim’s balance sheet and provide the financial flexibility needed to restore production and return the group to sustainable profitability.