RZM Murowa Q1 diamond output dips 20%

RZM Murowa, a subsidiary of RioZim says its first-quarter diamond output in Zvishavane, Zimbabwe dropped by 20% compared to the same period, a year earlier.
It said, without providing figures, that production during the quarter was mainly from the low-grade K2 pits which resulted in subdued carats produced. 
“This led to production being 20% below the comparative period,” it said.
RioZim said RZM Murowa is focused on its plant capacitation project which will enable it to increase carats production through a ‘high volume low-grade strategy’.
“Progress on the project is, however, hampered by foreign currency challenges,” it said.
“…engagements with the central bank will continue for an upward review of the company’s foreign currency retention [for] the company to meet its operational requirements…”
RioZim said the impact of inadequate foreign currency on the group was further worsened by a second wave of the COVID-19 pandemic, which brought about the re-introduction of the lockdowns that had been relaxed in the prior year. 
The combined effect of these negative forces also contributed to the 10% decline in gold production compared to the prior year’s quarter.
It said the company did not benefit to the full extent from the 12% increase in the average gold prices which averaged $1 745/oz up from $1 562/oz recorded in the comparative period.

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished