Mining group Riozim Limited plans to resume exploration across its mineral claims as part of a broader strategy to extend the life of its mining assets and unlock additional value, once it secures fresh funding.
The diversified miner said restarting exploration work formed part of a package of operational interventions designed to restore production and strengthen long term sustainability.
In its annual report, the company said negotiations with a potential investor after year-end could provide funding for plant upgrades, working capital and exploration activities.
“Following year-end, the group entered into negotiations with a potential investor to secure loan funding aimed at revitalising operations and improving working capital,” RioZim said.
The company said the proposed funding would support several initiatives, including restarting exploration.
“(The group) plans to resume exploration on mineral claims to unlock additional value,” the directors said, outlining one of the priorities for the expected capital injection.
RioZim said refurbishments at Cam and Renco mines would also be undertaken to eliminate production bottlenecks and increase gold output.
“Refurbishment Plans: Upgrades at Renco and Cam plants aim to eliminate production bottlenecks and increase gold output,” the report said.
The company added that it had already expanded small-scale mining operations during the final quarter of 2024 to improve throughput and generate cash flows to cover costs at Dalny Mine, which remains under care and maintenance.
Management also expects the anticipated funding to support cost reduction measures and revenue generating initiatives at Empress Nickel Refinery and other operating assets.
The planned exploration programme comes as RioZim seeks to rebuild production after a difficult year in which operations were disrupted by low plant availability, blind mining at Renco Mine and a pit development backlog at Cam & Motor Mine. The company also faced liquidity constraints, electricity shortages and exchange rate distortions that affected performance.
Despite the challenges, directors said the planned interventions, combined with continued backing from shareholders, creditors and other stakeholders, supported the company’s outlook.
“In assessing the going concern status of the company, the directors considered the positive impact of the potential funding investments and the planned interventions at the Cam and Renco plants, which are expected to enhance production capacity and improve cash flows,” the report said.
“The directors believe that the company will remain a going concern, and the preparation of the accompanying financial statements on this basis remains appropriate.”