Zimbabwe: Riozim Withdraws Cautionary Statement As RBZ Clears Outstanding U.S.$ Debts

20 November 2020

MINING giant, RioZim has urged its shareholders to stop exercising caution when trading the company's shares following the clearing of outstanding debts by the Reserve Bank of Zimbabwe (RBZ) for gold deliveries.

In June this year, the miner reported the central bank owed it US$2 million for gold delivered to Fidelity Printers and Refiners (FPR).

The gold miner also said it was owed $65.4 million in the local currency, funds which had lost almost their purchasing power.

The delays in settling the debts saw the coupled with the mining company losing over 20% of its gold value.

The highly expensive local market for consumables and spares, also made it impossible for RioZim to procure the necessary equipment required to continue with production.

However, in an update this week, RioZim's official Per Chiurayi withdrew the cautionary statement and informed shareholders the outstanding amount had been settled.

"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 the outstanding amounts and have assured the company of timely payments for gold deliveries going forward," Chiurayi said.

"Accordingly, caution is no longer required to be exercised by shareholders when dealing in their securities."

Recently, the gold miner reported that two of its key gold mines - Cam and Motor, and Dalny - had recorded a slowdown in output due to varying reasons during the third quarter of 2020.

RioZim reported Cam and Motor Mine continued with the processing of low-grade ore from its One Step Mine throughout the quarter.

As a result, the mine's output declined by 8% from the same period last year when the mine produced from high-grade ores at its Cam gold pits.

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