[2008-08-29]  RioZim records 34 percent decline in profits
MINING giant, RioZim Limited, a subsidiary of Rio International, recorded a 34 percent decline in profits for the half year ended June 30 2008 due to operating constraints which resulted in the scaling down of operations at some of its mines.

According to the company’s financial statement, the group achieved a net attributable profit of $33 quadrillion in historical terms during the period under review compared to $50 quadrillion during the same period last year.

The group’s turnover amounted to $79,3 quadrillion compared to $173 quadrillion for the same period last year.

During the first quarter of the period under review the group achieved a net attributable profit of $32 quadrillion compared to a profit of $46 quadrillion in 2007.

"The group’s profit performance deteriorated in the second quarter due to the scale down of operations at Renco in April as a result of a shortage of inputs and the disruption to operations at Empress Nickel Refinery during the second quarter due to power supply breakdown.

The group’s overall production was low with Renco Mine producing 255 kg of gold compared to 368 in 2007 while the Empress refinery recorded 3 586 of combined metal tonnes compared to 5 911 tonnes.

The Sengwa Colliery project produced 99 042 tonnes compared to 88 845 tonnes in 2007.

Diamond mining at Murowa recorded an improvement in production of 135 000 carats compared to 46 211 carats for the same period last year.

The venture contributed a profit of $25 quadrillion to the first quarter profits compared to a net loss of$1,7 billion last year.

The group, however, said the full potential of the venture was being hampered by delays in the implementation of the expansion project.

On the One Step gold mining project, the group said ore body delineation work on the original and the adjoining claims continued throughout the period under review and should be concluded by year-end.

Source: (C) 2008 The Herald