en.Wedoany.com Reported - Zimbabwean mining group RioZim's Renco gold mine has staged a strong rebound, with gold production in the first quarter of 2026 surging to 92 kg from 6 kg in the same period last year. The mining group endured a difficult period in 2025, with total annual gold output reaching only 84 kg.
The company's operational difficulties had been publicly known: its borrowing ballooned to 455.3 million ZiG, and its auditors expressed doubts about its ability to continue as a going concern. The Cam & Motor mine was completely shut down for most of last year, while the Renco mine barely maintained production after a prolonged suspension.
The turning point came in recent months. Renco's recovery began in September 2025, when the mine restarted operations under a contract mining agreement with Chinese contractor FeiFan Mining. Through this collaboration, operational efficiency and stability improved, with production growing steadily over the past nine months. The mine's current operational level has now returned to pre-crisis highs.
The group as a whole is also showing improvement. Diamond operations at RZM Murowa saw output jump to 45,606 carats from 2,745 carats in the first quarter of 2025. The Cam & Motor mine contributed no production in the first quarter due to extensive dewatering and plant refurbishment, but it poured its first gold bar on June 2. Management is focused on ramping up production at the Kadoma-based mine to full capacity, which would mark the first time in years that RioZim operates both of its flagship gold mines simultaneously.
The operational turnaround coincides with a strong gold price. Gold prices have risen 70% year-on-year, from $2,861 per ounce in Q1 2025 to $4,873 per ounce in Q1 2026, with current prices hovering near $5,000 per ounce. The combination of higher production and stronger prices has pushed revenue far above year-ago levels, significantly improving the economics of each ounce mined and providing RioZim with much-needed cash flow.
Despite this, challenges remain. The Empress nickel refinery remains in care and maintenance, power shortages continue to threaten mining growth, diamond prices remain subdued, and high borrowing costs make long-term reinvestment difficult. However, with Renco operating at full capacity and Cam & Motor back in production, management believes RioZim is positioned for a return to profitability. The company also plans to restart exploration activities, signaling confidence in the sustainability of the recovery.
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