RioZim withdraws cautionary announcement, agrees payment structure with RBZ

Author Name
Rufaro Checha
Author
Stock Market 6 days ago
  • Delays in payments for gold deliveries strained the Company’s working capital
  • Agreement reached with RBZ and Fidelity will help revitalize operations
  • RioZim has an extensive portfolio of resources in gold, base metals, diamonds, coal and chrome

HARARE – ZSE listed, gold producer RioZim Limited has withdrawn the cautionary announcements dated 15 June 2020 and 8 July 2020 regarding the impasse between the Company, Fidelity Printers and Refiners (Fidelity) and the Reserve Bank of Zimbabwe (RBZ) over outstanding payments for gold deliveries made by the Company.

RioZim which is one of Zimbabwe’s largest gold producers has always raised a red flag over delays in payments by the Central Bank for gold delivered to Fidelity. This has had a negative impact on the company’s operations, where it has on numerous occasions reported strained working capital and cash flows.

For instance, in a trading update for the quarter ended 30 September 2020, the company’s gold output declined by 9% as operations came under tremendous pressure from strained working capital.

The Company said the agreement reached with RBZ and Fidelity will help revitalize its operations.

RioZim said in a statement, “The Company would like to advise its valued shareholders that engagements with the RBZ have been fruitful. The RBZ and Fidelity have been making part payments to the Company with a view to clearing outstanding amounts and have assured the company of timely payments for gold deliveries going forward.

“As a result, the Company’s operations are nearing normal capacity”.

RioZim is an integrated mining and metallurgical company in Zimbabwe with an extensive portfolio of resources in gold, base metals, diamonds, coal and chrome. It mining operations include Renco Gold Mine in Masvingo Province, and Cam and Motor Gold Mine and Empress Nickel Refinery; both in the Mashonaland West Province. RioZim also has interests in Sengwa Colliery (Private) Limited with coal assets in Gokwe North; Murowa Diamonds (Private) Limited with operations in Zvishavane; and Marnatha ferrochrome refinery in Kadoma.

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