RioZim is turning its attention to rebuilding production capacity and restructuring its balance sheet after restoring operations at its key mines during the first half of 2026.
The mining group said its recovery strategy had enabled it to return to meaningful production, with 213 kilogrammes of gold produced in the six months to 30 June after operations had been largely at a standstill in the prior comparable period.
The company is now preparing for a further increase in output at Cam & Motor Mine, where installation of a second mill has commenced and is expected to be commissioned before the end of the year.
The additional mill is expected to increase the mine’s processing capacity and support higher gold production.
“The group is focused on ramping up production at Cam & Motor mine to maximise the benefit of favourable gold prices,” chairman Caleb Dengu said in the company’s half-year results.
At Renco Mine, RioZim is pursuing a separate set of initiatives aimed at increasing ore availability in the short term.
The company said an open-pit operation had been trialled during the period, while heap-leaching projects were still under development at June 30. Both projects are expected to be completed in the second half of the year.
However, management warned that sustaining Renco’s longer-term production would require substantial investment.
The priorities include upgrading the ageing processing plant, increasing exploration and mine development to counter declining grades, and refurbishing the mine’s power supply and backup infrastructure.
“The Group is evaluating available options to identify sustainable solutions that will safeguard the mine’s future,” Dengu said.
The company has also adopted new funding and operating arrangements to support the revival of its mines.
Feifan Mining was given exclusive rights to mine and process gold ore at Renco under a contract mining arrangement, with proceeds from gold sales ring-fenced toward recovery of advances made to RioZim.
At Cam & Motor, Feifan Double Investments was appointed as mining contractor as part of the resuscitation and stabilisation programme.
The company said the FDI funding would primarily support the revival of Cam & Motor, with residual funds going towards working capital.
RioZim also obtained additional funding from Feifan Mining during the period. The company said the loan advances were linked to cash flows generated from Renco, while the FDI facility would be repaid from Cam & Motor’s future cash flows.
The funding arrangements come as RioZim continues efforts to reduce its debt burden.
In April, shareholders approved the disposal of the group’s 22.2 percent interest in RZM Murowa. The transaction generated consideration of ZWG600.5 million, which was applied towards partial settlement of borrowings from Murowa.
The company also disposed of certain mining claims that were no longer considered part of its core operating activities in order to raise working capital.
These included the One Step Gold and Mutandahwe Tungsten claims, while diamond claims associated with Murowa were also disposed of following the sale of RioZim’s interest in the associate.
RioZim said the decisions reflected a broader strategy to concentrate resources on assets with a clearer path to development.
“The Group continues to evaluate opportunities to strengthen its balance sheet and secure its long-term future,” Dengu said.