en.Wedoany.com Reported - RioZim Ltd, once one of Zimbabwe's largest gold producers, saw its net loss widen to $29.5 million in 2025 from $25.4 million, as gold output at two mines plunged 80%, preventing the company from capitalizing on record-high gold prices.
The deepening loss was driven by the Renco and Cam & Motor mines remaining largely idle for most of the year as management sought funding and new partners. The company's financial report shows total gold production fell to 84 kilograms in 2025, down from 428 kilograms in 2024.
The sharp output decline meant RioZim failed to benefit from a 44% surge in average gold prices year-on-year in 2025, with the average price rising to $3,436 per ounce from $2,389 per ounce in 2024. Competitors capitalized on the rally while RioZim was left on the sidelines.
The Renco mine only restarted in September under a contract mining agreement with Chinese contractor FeiFan Mining, which has now become RioZim's main financier. All 84 kilograms of gold produced in 2025 came from Renco's fourth-quarter output. The Cam & Motor mine produced no gold at all.
RioZim's decline is stark compared to its peers. In the first quarter of 2026 alone, the Blanket mine produced 14,767 ounces of gold (approximately 459 kilograms). RioZim's entire 2025 output was less than what Blanket produces in three weeks at its current run rate.
Looking ahead, RioZim aims to turn things around through a two-pronged operational recovery. At the Renco mine, the company plans extensive underground development to open new mining areas and improve grade flexibility. Despite power outages caused by rainfall in the fourth quarter of 2025, the company is working with the national power utility to strengthen backup power systems and upgrade electrical infrastructure.
Similar recovery efforts extend to the Cam & Motor mine. Pit dewatering has been completed, and management has shifted priorities to refurbishing the processing plant to resume production. Pit development and relocation of blasting zone facilities remain critical. The company stated that progress made after year-end positions the mine to begin gold production in the second half of 2026.
The macro environment is currently favorable for RioZim. Gold prices remain elevated, reaching approximately $5,000 per ounce in 2026. The board believes that solid financing, the restoration of operations at both mines, and favorable gold prices will drive the company back to profitability.
Whether the latest turnaround plan succeeds will depend on execution and whether RioZim can finally capitalize on this rally.
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