RIOZIM LIMITED Audited Abridged Financial Results
FOR THE YEAR ENDED 31 DECEMBER 2023
Head Office: RioZim Limited
1 Kenilworth Road, Highlands, Harare. P O Box CY 1243, Causeway, Highlands, Harare, Zimbabwe Telephone: +263 746141/9, 776085/91, 746089/95, +263 86 7700 7168,
Cell: +263 77 215 8503-5, Fax: 746228.
PAGE 1 OF 4 RIOZIM/03802
CHAIRMAN'S STATEMENT
INTRODUCTION
The Group's financial year was marked by the sad loss of the Company's major shareholder's representatives, and four of the Company's executives in a fatal plane crash which involved one of RZM Murowa Aviation's planes. This unfortunate accident cast a dark cloud on the 2023 financial year for the Company and we continue to mourn these dear departed colleagues.
It is with this heavy heart that I present to you the financial results for the Group for the year ended 31 December 2023.
The year began on a positive note, with an upward review of the nostro retention from 60% to 75%, which was a welcome boost to the Group as this partially alleviated the foreign currency shortages. The increased nostro retention was complemented by favourable gold prices that experienced an upward trend from the beginning of the year thus contributing to the revenue growth for the year. Despite the challenging operating environment, the Group's gold production remained resilient recording a 1% growth from prior year.
Notwithstanding the notable growth in production and favourable gold prices, the financial performance was weighed down by the macroeconomic environment which remained turbulent and challenging. The period was characterised by rising cost of production driven by inconsistent power supply and spiralling exchange rates which subsisted throughout the year. Resultantly, the Group recorded a net loss for the year.
GROUP PERFORMANCE
Production for the year was 940kg, which was a slight 1% increase from prior year production of 928kg. The subdued production volumes were due to persistent plant breakdowns largely experienced at Cam & Motor Mine, which struggled with breakdowns in its milling section resulting in reduced throughput. Dalny remained under full care and maintenance during the year. The gold price maintained its growth trajectory from the beginning of the year and averaged US$1 913/oz for the year which was a 8% increase from the prior year's average price of US$1 766/oz. The improvement in gold production and gold prices increased the Group's revenue during the year to ZW$216.1 billion compared to ZW$20.6 billion achieved in the prior year. The increase in exchange rates in the current year also contributed to the enormous increase in revenue in ZW$ terms compared to the prior year.
GOLD BUSINESS
Renco Mine
Renco Mine reinforced its "low grade-high volume" strategy in the current year, ultimately maximising its milled throughput. This yielded positive results as production rose by 10% to 441kg from 402kg recorded in the comparative year. The Company is focused on stabilising power supply at Renco which remains a production obstacle for the mine. In order to curb this problem, the mine continues to invest in additional generator capacity to limit the impact of power cuts on production. Renco Mine is also reviewing its power supply arrangements and will consider all opportunities and alternatives possible that will result in improvement in power supply to the mine.
Cam & Motor Mine
The mine's production was largely affected by continuous breakdowns on the milling section. Mill 2 experienced frequent down times resulting in low milling throughput. Mill 2 was eventually suspended for major refurbishment in the fourth quarter and repair works were still ongoing as at year-end. Consequently, gold production fell by 5% in the current period to 499kg compared to 527kg achieved in prior year. Whilst the mine is undergoing rehabilitation of its second mill to increase milling capacity, the mine was also focused on its pit development. Delayed pit development has affected the desired blending matrix of run of mine processed into the plant which had a significant negative impact on gold recoveries.
Dalny Mine
During the period under review, Dalny remained under care and maintenance yielding no gold production for the year. The mine is working on regulatory approvals for its envisaged small scale operations in an effort to generate cash flows which will partially fund the care and maintenance costs and reduce the overall cash flow impact to the Group.
BASE METALS BUSINESS
The Refinery remained under care and maintenance during the current year and contributed revenue of ZW$314.2 million in the current period which partially funded its care and maintenance costs. The key focus in the ensuing year is to resuscitate the oxygen generation section of the plant which has a potential of generating additional income for the Refinery.
CHROME BUSINESS
The legal dispute involving the Company's chrome claims in Darwendale still persisted in the courts as at year end. The Company is however, committed to pursuing an amicable resolution of the matter with all the stakeholders concerned.
DIAMOND BUSINESS
Production for the year at the Company's associate RZM Murowa (Private) Limited declined by 3% to 414 000 carats compared to 426 000 carats recorded in 2022. Mining activities from the pits remained suspended and material processed was obtained from the pre-minedlow-grade tailings stockpiles. However, the achieved grades reduced in the current year due to the inhomogeneity of the stockpiles resulting in lower carats being achieved. The Group recorded a share of loss from the associate of ZW$5.4 billion in contrast to the share of profit of ZW$102.1 million in the prior year due to the reduced carats in the current year
ENERGY BUSINESS
The Company's energy projects mainly the 178 MW Solar Projects are now at funding stage after obtaining all the necessary regulatory approvals for these projects in prior years. The Company is currently engaging various potential funding partners in an effort to reach financial closure. Our stakeholders will be kept informed of any notable developments.
OUTLOOK
After the various interventions on the stabilisation of the 500TPH Plant at RZM Murowa in the current year, the key focus is on extending the Life of Mine. Extensive exploration and development work is planned in the ensuing year to delineate more open pit resources to extend the life of the pits and complement the existing stockpiles.
At Cam & Motor, improving plant uptime is a key priority to stabilise milling throughput which was a major hindrance in the current period. Refurbishment of the mills remains on the critical path to bring the plant to a stable state. Concerted efforts will also be made towards other key sections of the plant which have been impacting plant efficiencies and gold recoveries.
Power supply remains a major threat to production at Renco mine and resolution of this issue will go a long way in bringing production to plan. The Company is focused on finding alternative sources of power supply including adding generator capacity amongst other initiatives.
The future of the Group looks positive as these initiatives are set to stabilise production and bring the Group back to profitability.
DIRECTORATE
Messrs G R Flanagan and A P Shanghavi were appointed as Non-Executive Directors on 28th April 2023 subsequent to the resignation of Messrs M M Shah and G K Jain as Chief Executive Officer and Non-Executive Director respectively.
DIVIDENDS
No dividends were declared for the period.
APPRECIATION
I am deeply humbled and indebted for the tireless efforts of the Directors, who worked towards the survival and success of our Company during this difficult period. In addition, I extend my profound acknowledgement to our Management and Employees who are our most precious assets and pillars of success of this Company. Their continuous hard work and commitment to the Company's vision has been exceptional. The Company would not have thrived thus far without the continuous support of our various key stakeholders, and their valuable contribution to the Company is greatly appreciated.
S R BEEBEEJAUN
CHAIRMAN
ABRIDGED CONSOLIDATED STATEMENT OF PROFIT OR LOSS
For the year ended 31 December 2023
2023 | 2022 | ||
Audited | Audited | ||
Note | ZW$000 | ZW$000 | |
Revenue | 216 073 992 | 20 595 816 | |
Cost of sales | (190 687 752) | (19 665 336) | |
Gross profit | 25 386 240 | 930 480 | |
Distribution and selling costs | (82 482) | (8 363) | |
Administrative expenses | (90 562 949) | (10 644 214) | |
Other income | 3 935 070 | 555 265 | |
Operating loss | (61 324 121) | (9 166 832) | |
Finance costs | (13 045 815) | (1 396 788) | |
Share of (loss)/profit from an associate | (5 368 069) | 102 149 | |
Loss before tax | |||
(79 738 005) | (10 461 471) | ||
Income tax expense | (16 067 082) | (9 579 151) | |
Loss for the year | (95 805 087) | (20 040 622) | |
Loss for the year attributable to: | (95 686 232) | (19 988 335) | |
Owners of the parent | |||
Non-controlling interests | (118 855) | (52 287) | |
(95 805 087) | (20 040 622) | ||
Loss per share (cents): | 8 | (78 412.06) | (16 379.85) |
Basic | |||
Diluted basic | 8 | (78 412.06) | (16 379.85) |
ABRIDGED CONSOLIDATED STATEMENT OF
OTHER COMPREHENSIVE INCOME
For the year ended 31 December 2023
2023 | 2022 | ||
Audited | Audited | ||
ZW$000 | ZW$000 | ||
Loss for the year | (95 805 087) | (20 040 622) | |
Other comprehensive income | |||
Other comprehensive income/(loss) to be reclassified to profit or loss: | |||
Foreign currency translation gains | 76 555 306 | 19 819 191 | |
Net other comprehensive income to be reclassified to profit or loss | 76 555 306 | 19 819 191 | |
Other comprehensive income/(loss) not to be reclassified to profit or loss: | |||
Re-measurement gains/(losses) on defined benefit plans | 11 173 191 | (214 217) | |
Income tax effect | (2 762 013) | 52 954 | |
Fair value gain on other comprehensive income investments | 1 582 971 | 10 768 | |
Income tax effect | (79 149) | (538) | |
Net other comprehensive income/(loss)not to be reclassified to profit or loss | 9 915 000 | (151 033) | |
Total other comprehensive income for the year, net of tax | 86 470 306 | 19 668 158 | |
Total comprehensive loss for the year | |||
(9 334 781) | (372 464) | ||
Total comprehensive loss attributable to: | |||
Owners of the parent | (8 127 706) | (114 746) | |
Non-controlling interests | (1 207 075) | (257 718) | |
(9 334 781) | (372 464) | ||
DIRECTORS: S R Beebeejaun (Chairman), C Dengu (Deputy Chairman), R Swami* (Chief Executive Officer), M S Bindra, G R Flanagan, M T Sachak, A P Shanghavi - Executive*
Audited Abridged
Financial Results
FOR THE YEAR ENDED 31 DECEMBER 2023
Head Office: RioZim Limited
1 Kenilworth Road, Highlands, Harare. P O Box CY 1243, Causeway, Highlands, Harare, Zimbabwe
Telephone: +263 746141/9, 776085/91, 746089/95, +263 86 7700 7168,
Cell: +263 77 215 8503-5, Fax: 746228.
ABRIDGED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2023
Attributable To Equity Holders Of The Parent | |||||||||
Fair value | Foreign | ||||||||
through other | currency | Non- | |||||||
Share | Share | comprehensive | translation | Accumulated | controlling | Total | |||
capital | premium | income reserve | reserve | losses | Total | interests | Equity | ||
ZW$000 | ZW$000 | ZW$000 | ZW$000 | ZW$000 | ZW$000 | ZW$000 | ZW$000 | ||
Balance as at 1 January 2022 | 1 345 | 20 789 | 13 173 | 6 003 034 | (2 061 721) | 3 976 620 | (33 090) | 3 943 530 | |
Loss for the year | - | - | - | - | (19 988 335) | (19 988 335) | (52 287) | (20 040 622) | |
Other comprehensive income/(loss) net of tax | - | - | 10 230 | 20 024 622 | (161 263) | 19 873 589 | (205 431) | 19 668 158 | |
Total comprehensive income/(loss) | - | - | 10 230 | 20 024 622 | (20 149 598) | (114 746) | (257 718) | (372 464) | |
Balance as at 31 December 2022 | 1 345 | 20 789 | 23 403 | 26 027 656 | (22 211 319) | 3 861 874 | (290 808) | 3 571 066 | |
Loss for the year | - | - | - | - | (95 686 232) | (95 686 232) | (118 855) | (95 805 087) | |
Other comprehensive income/(loss) net of tax | - | - | 1 503 822 | 77 643 526 | 8 411 178 | 87 558 526 | (1 088 220) | 86 470 306 | |
Total comprehensive income / (loss) | - | - | 1 503 822 | 77 643 526 | (87 275 054) | (8 127 706) | (1 207 075) | (9 334 781) | |
Balance as at 31 December 2023 | 1 345 | 20 789 | 1 527 225 | 103 671 182 | (109 486 373) | (4 265 832) | (1 497 883) | (5 763 715) | |
PAGE 2 OF 4 RIOZIM/03802
ABRIDGED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
As at 31 December 2023
2023 | 2022 | ||
Audited | Audited | ||
Note | ZW$000 | ZW$000 | |
ASSETS | |||
Non-current assets | |||
Property, plant and equipment | 9 | 385 798 718 | 47 891 528 |
Exploration, evaluation and development assets | 10 | 79 404 093 | 8 679 608 |
Right of use asset | 217 710 | 81 744 | |
Investment in associate company | 165 177 051 | 18 521 109 | |
Employee benefit asset | 10 730 477 | - | |
Fair value through other comprehensive income investments | 1 607 630 | 24 659 | |
Total non-current assets | 642 935 679 | 75 198 648 | |
Current assets | |||
Inventories | 5 | 67 292 329 | 9 565 620 |
Trade and other receivables | 48 694 571 | 4 795 721 | |
Cash and cash equivalents | 948 837 | 394 558 | |
Total current assets | 116 935 737 | 14 755 899 | |
Total assets | |||
759 871 416 | 89 954 547 | ||
EQUITY & LIABILITIES | |||
Shareholders' equity | |||
Share capital | 1 345 | 1 345 | |
Share premium | 20 789 | 20 789 | |
Fair value through other comprehensive income reserve | 1 527 225 | 23 403 | |
Accumulated losses | (109 486 373) | (22 211 319) | |
Foreign currency translation reserve | 103 671 182 | 26 027 656 | |
Equity attributable to equity holders of the parent | (4 265 832 ) | 3 861 874 | |
Non-controlling interests | (1 497 883) | (290 808) | |
Total equity | (5 763 715) | 3 571 066 | |
Non-current liabilities | |||
Interest-bearing loans and borrowings | 7 | - | 1 466 173 |
Mine rehabilitation provision | 21 264 987 | 2 486 067 | |
Other payables | 6 | 184 720 215 | 20 706 978 |
Deferred tax liabilities | 24 130 552 | 10 904 633 | |
Employee benefit liability | - | 169 321 | |
Lease liability | - | 94 463 | |
Total non-current liabilities | 230 115 754 | 35 827 635 | |
Current liabilities | |||
Trade and other payables | 6 | 482 731 863 | 42 312 856 |
Interest-bearing loans and borrowings | 7 | 52 262 508 | 8 225 156 |
Lease liability | 525 006 | 17 834 | |
Total current liabilities | 535 519 377 | 50 555 846 | |
Total liabilities | |||
765 635 131 | 86 383 481 | ||
Total liabilities and shareholders' equity | |||
759 871 416 | 89 954 547 |
ABRIDGED CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 December 2023
2023 | 2022 | ||
Audited | Audited | ||
Note | ZW$000 | ZW$000 | |
Net cash flows from operating activities | 26 165 574 | 7 352 781 | |
Cash flows from investing activities | |||
Investment in exploration and evaluation assets | 10 | (2 953 302) | (1 869 390) |
Additions to property, plant and equipment | 9 | (4 234 527) | (2 456 696) |
Net cash used in investing activities | (7 187 829) | (4 326 086) | |
Cash flow from financing activities | |||
Inflows from borrowings | 3 034 266 | 362 695 | |
Repayment of borrowings | (22 224 681) | (3 296 061) | |
Repayment of lease liability | (311 770) | (47 474) | |
Net cash used in financing activities | (19 502 185) | (2 980 840) | |
Net (decrease)/increase in cash and cash equivalents | (524 440) | 45 855 | |
Unrealised exchange gains on foreign currency balances | 1 078 719 | 264 266 | |
Cash and cash equivalents at beginning of period | 394 558 | 84 437 | |
Cash and cash equivalents at 31 December | 948 837 | 394 558 |
NOTES TO THE ABRIDGED CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2023
-
GENERAL INFORMATION
RioZim Limited ('the Company') and its subsidiaries (together 'the Group') is involved in mining and metallurgical operations in different locations in Zimbabwe. The Group has mining operations and a metallurgical plant.
The Company is a limited liability company incorporated and domiciled in Zimbabwe. The address of its registered office is 1 Kenilworth Road, Newlands, Harare. The Company is listed on the Zimbabwe Stock Exchange.
The responsibility for the preparation of these abridged consolidated financial statements is that of the Board. These abridged consolidated financial statements were therefore, authorised for issue by the Board of Directors on 28 March 2024. - BASIS OF PREPARATION
The abridged consolidated financial statements of the Group have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and the disclosure requirements of the Companies and Other Business Entities Act (Chapter 24:31). The abridged consolidated financial statements are based on statutory records that are maintained under the historical costs conventions as modified by measurement of certain financial assets at fair value. They do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group's annual financial statements for the year ended 31 December 2023.
The consolidated abridged financial statements are presented in Zimbabwean dollars (ZW$), and all values are rounded to the nearest thousand (ZW$000), except where otherwise indicated. The Group's functional currency is the United States dollar (USD).
S R Beebeejaun (Chairman), C Dengu (Deputy Chairman), R Swami* (Chief Executive Officer), M S Bindra, G R Flanagan, M T Sachak, A P Shanghavi - Executive*
Audited Abridged Financial Results
FOR THE YEAR ENDED 31 DECEMBER 2023
Head Office: RioZim Limited
1 Kenilworth Road, Highlands, Harare. P O Box CY 1243, Causeway, Highlands, Harare, Zimbabwe Telephone: +263 746141/9, 776085/91, 746089/95, +263 86 7700 7168,
Cell: +263 77 215 8503-5, Fax: 746228.
PAGE 3 OF 4 RIOZIM/03802
NOTES TO THE ABRIDGED CONSOLIDATED FINANCIAL STATEMENTS (CONT'D) | NOTES TO THE ABRIDGED CONSOLIDATED FINANCIAL STATEMENTS (CONT'D) | |||
For the year ended 31 December 2023 | For the year ended 31 December 2023 | |||
-
BASIS OF PREPARATION (CONT'D)
The Public Accountants and Auditors Board (PAAB) pronounced in 2019 that factors and characteristics for the application of IAS 29 "Financial Reporting in Hyper-Inflationary Economies" in Zimbabwe were met and mandated IAS 29 to be applied in the preparation and presentation of financial statements for entities in Zimbabwe. Hyper-inflation financial reporting is however, applicable to entities whose functional currency is the currency in hyper-inflation.
The Group's functional currency is USD, which is not a currency in hyper-inflation and therefore IAS 29 is not applicable to the financial statements of the Group. The Group applied interbank exchange rates for conversions from the Group's functional currency USD to the presentation currency ZW$. The closing interbank exchange rate as at 31 December 2023 was 6 104.72 (2022: 684.33). - SIGNIFICANT ACCOUNTING POLICIES
The abridged consolidated financial statements have been prepared in accordance with the accounting policies adopted in the Group's last annual financial statements and applicable amendments to International Financial Reporting Standards (IFRS). - ESTIMATES
When preparing the abridged consolidated financial statements, management undertakes a number of significant judgements, estimates and assumptions about recognition and measurement of assets, liabilities, income and expenses. Key areas affected include, measurement of metals and minerals in concentrates and circuit, ore reserves and mineral resource estimates. The actual results may differ from the judgements, estimates and assumptions made by management.
2023 | 2022 | |||
Audited | Audited | |||
ZW$000 | ZW$000 | |||
5 INVENTORIES | ||||
Stores and consumables | 51 425 112 | 6 418 250 | ||
Ore stockpiles | 6 514 786 | 730 302 | ||
Metals and minerals in concentrates and circuit | 7 783 518 | 2 241 194 | ||
Finished metals | 1 568 913 | 175 874 | ||
6 TRADE AND OTHER PAYABLES | 67 292 329 | 9 565 620 | ||
Trade payables | 73 460 603 | 5 515 700 | ||
Other payables | 395 482 040 | 35 056 220 | ||
Leave pay liabilities | 13 789 220 | 1 740 936 | ||
482 731 863 | 42 312 856 | |||
Non-Current | ||||
Other payables | 184 720 215 | 20 706 978 | ||
184 720 215 | 20 706 978 | |||
7 INTEREST-BEARING LOANS AND BORROWINGS | ||||
Effective interest rate % | Maturity | |||
Current | ||||
Bank loans (facility limit US$15.5m) | 10% | On scheduled dates | 30 285 516 | 5 761 220 |
Other term loan | 0% | December 2019* | 21 976 992 | 2 463 936 |
52 262 508 | 8 225 156 | |||
Non-current | ||||
Bank loans | 10% | On scheduled dates | - | 1 466 173 |
*These facilities matured and are overdue. | - | 1 466 173 | ||
Security
Bank loans were secured by revenue assignment agreements in respect of gold proceeds and some items of property, plant and equipment
All other interest bearing loans and borrowings are unsecured.
8 EARNINGS PER SHARE
Basic earnings per share amounts are calculated by dividing the net profit/(loss) attributable to the ordinary equity holders of the Group by the weighted average number of ordinary shares outstanding during the year excluding treasury shares.
Diluted earnings per share amounts are calculated by dividing the net profit/(loss) attributable to the ordinary equity holders of the Group after adjusting for impact of dilutive instruments.
The following reflects the income and share data used in the earnings per share computations:
2023 | 2022 | ||
Audited | Audited | ||
ZW$000 | ZW$000 | ||
Loss attributable to equity holders of the parent for basic earnings | (95 686 232) | (19 988 335) | |
Weighted average number of ordinary shares for earnings per share | |||
000 | 000 | ||
Number of issued shares as at 31 December | 122 030 | 122 030 | |
Weighted average number of ordinary shares | 122 030 | 122 030 | |
There were no dilutive instruments during the period, therefore the weighted average number of ordinary shares was the same for basic, diluted and headline earnings per share.
Loss per share (cents) | ||
Basic | (78 412.06) | (16 379.85) |
Diluted basic | (78 412.06) | (16 379.85) |
There have been no other transactions involving ordinary shares or potential ordinary shares between the reporting date and the date of authorisation of these financial statements.
9 PROPERTY, PLANT AND EQUIPMENT
Heavy | Capital | ||||||||||
Land and | Plant and | mobile | work | Motor | Furniture | ||||||
buildings | equipment | equipment | in progress | vehicles and fittings | Total | ||||||
ZW$000 | ZW$000 | ZW$000 | ZW$000 | ZW$000 | ZW$000 | ZW$000 | |||||
Cost | |||||||||||
At 1 January 2022 | 2 984 661 | 1 863 378 | 815 333 | 3 871 809 | 77 112 | 47 100 | 9 659 393 | ||||
Additions | - | 360 165 | - | 2 033 303 | 38 464 | 24 764 | 2 456 696 | ||||
Additions - Mine | |||||||||||
rehabilitation provision | - | 379 647 | - | - | - | - | 379 647 | ||||
Transfers | - | 22 080 058 | (118 706) | (23 457 457) | 118 706 | - | (1 377 399) | ||||
Foreign currency | |||||||||||
translation exchange gain | 21 563 711 | 31 382 625 | 7 033 783 | 19 337 834 | 1 613 183 | 1 347 846 | 82 278 982 | ||||
At 31 December 2022 | 24 548 372 | 56 065 873 | 7 730 410 | 1 785 489 | 1 847 465 | 1 419 710 | 93 397 319 | ||||
Additions | - | 663 291 | - | 1 691 881 | 1 774 022 | 105 333 | 4 234 527 | ||||
Transfers | - | 6 633 077 | - | (6 633 077) | - | - | - | ||||
Foreign currency | |||||||||||
translation exchange gain | 194 440 914 | 444 283 874 | 61 230 453 | 14 827 541 | 14 776 516 | 11 573 293 | 741 132 591 | ||||
At 31 December 2023 | 218 989 286 | 507 646 115 | 68 960 863 | 11 671 834 | 18 398 003 | 13 098 336 | 838 764 437 | ||||
Accumulated Depreciation | |||||||||||
At 1 January 2022 | 237 344 | 663 051 | 379 798 | - | 39 699 | 19 659 | 1 339 551 | ||||
Depreciation charge | |||||||||||
for the year | 371 461 | 1 295 724 | 942 588 | - | 85 896 | 39 735 | 2 735 404 | ||||
Foreign currency | |||||||||||
translation exchange loss | 7 816 997 | 25 930 813 | 5 083 329 | - | 1 678 117 | 921 580 | 41 430 836 | ||||
At 31 December 2022 | 8 425 802 | 27 889 588 | 6 405 715 | - | 1 803 712 | 980 974 | 45 505 791 | ||||
Depreciation charge | |||||||||||
for the year | 2 823 248 | 18 286 755 | 3 371 118 | - | 572 158 | 280 573 | 25 333 852 | ||||
Foreign currency | |||||||||||
translation exchange loss | 69 155 331 | 236 560 252 | 53 623 777 | - | 14 776 508 | 8 010 208 | 382 126 076 | ||||
At 31 December 2023 | 80 404 381 | 282 736 595 | 63 400 610 | - | 17 152 378 | 9 271 755 | 452 965 719 | ||||
Net book value | |||||||||||
At 31 December 2022 | 16 122 570 | 28 176 285 | 1 324 695 | 1 785 489 | 43 753 | 438 736 | 47 891 528 | ||||
At 31 December 2023 | 138 584 905 | 224 909 520 | 5 560 253 | 11 671 834 | 1 245 625 | 3 826 581 | 385 798 718 | ||||
10 EXPLORATION, EVALUATION AND DEVELOPMENT ASSETS | |||||||||||
Exploration & | Development | Total exploration, | |||||||||
evaluation assets | costs | evaluation and | |||||||||
development | |||||||||||
assets | |||||||||||
ZW$000 | ZW$000 | ZW$000 | |||||||||
Cost | |||||||||||
At 1 January 2022 | 144 098 | 1 384 333 | 1 528 431 | ||||||||
Additions | 1 582 712 | 286 678 | 1 869 390 | ||||||||
Transfers | - | 1 377 399 | 1 377 399 | ||||||||
Foreign currency translation exchange gain | 4 763 376 | 15 663 225 | 20 426 601 | ||||||||
At 31 December 2022 | 6 490 186 | 18 711 635 | 25 201 821 | ||||||||
Additions | 2 736 987 | 216 315 | 2 953 302 | ||||||||
Foreign currency translation exchange gain | 57 466 893 | 149 019 002 | 206 485 895 | ||||||||
At 31 December 2023 | 66 694 066 | 167 946 952 | 234 641 018 | ||||||||
Accumulated Amortisation | |||||||||||
At 1 January 2022 | 71 130 | 379 021 | 450 151 | ||||||||
Amortisation for the year | - | 797 610 | 797 610 | ||||||||
Foreign currency translation exchange loss | 4 316 544 | 10 957 908 | 15 274 452 | ||||||||
At 31 December 2022 | 4 387 674 | 12 134 539 | 16 522 213 | ||||||||
Amortisation for the year | - | 4 229 760 | 4 229 760 | ||||||||
Foreign currency translation exchange loss | 34 749 686 | 99 735 266 | 134 484 952 | ||||||||
At 31 December 2023 | |||||||||||
39 137 360 | 116 099 565 | 155 236 925 | |||||||||
Carrying amount | |||||||||||
At 31 December 2022 | 2 102 512 | 6 577 096 | 8 679 608 | ||||||||
At 31 December 2023 | 27 556 706 | 51 847 387 | 79 404 093 |
DIRECTORS: S R Beebeejaun (Chairman), C Dengu (Deputy Chairman), R Swami* (Chief Executive Officer), M S Bindra, G R Flanagan, M T Sachak, A P Shanghavi - Executive*
Audited Abridged Financial Results
FOR THE YEAR ENDED 31 DECEMBER 2023
Head Office: RioZim Limited
1 Kenilworth Road, Highlands, Harare. P O Box CY 1243, Causeway, Highlands, Harare, Zimbabwe Telephone: +263 746141/9, 776085/91, 746089/95, +263 86 7700 7168,
Cell: +263 77 215 8503-5, Fax: 746228.
PAGE 4 OF 4 RIOZIM/03802
NOTES TO THE ABRIDGED CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)
For the year ended 31 December 2023
-
EVENTS AFTER THE REPORTING PERIOD
As at the date of approval of these financial statements there were no events after the reporting period that were material to require separate disclosure in these financial statements. - FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES
Fair value of trade receivables, interest bearing borrowings and all other receivables and payables approximates their carrying amount. The fair value of FVOCI investments is based on non market observable information.
12.1 Fair value hierarchy
The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:
Level 1 : quoted (unadjusted) prices in active markets for identical assets or liabilities
Level 2 : Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable
Level 3: Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable
Level 1 | Level 2 | Level 3 | |
Recurring fair value measurements | ZW$000 | ZW$000 | ZW$000 |
2023 | |||
FVOCI investments | - | - | 1 607 630 |
Trade receivables (subject to provisional pricing) | - | 78 809 | - |
Impact of level 3 measurements on Other Comprehensive Income | - | - | 337 856 |
2022 | |||
FVOCI investments | - | - | 24 659 |
Trade receivables (subject to provisional pricing) | - | - | - |
Impact of level 3 measurements on Other Comprehensive Income | 10 768 | ||
There were no transfers in or transfers out of Level 3 and Level 2 financial instruments
12.2 Valuation techniques
Trade receivables (subject to provisional pricing)
The Group has trade receivables (subject to provisional pricing) arising from provisional pricing sales arrangements which the Group entered into with some of its metals in concentrate customers. Final settlement value would be based on final dry weight, agreed assays and final prices which were to be determined at the end of the Quotational Period (QP), usually ranging between 60 days to 180 days after date of shipment. The QP is the period after the physical shipment of goods during which the price and grade of mineral sold is subject to change due to fluctuations in commodity prices.
NOTES TO THE ABRIDGED CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)
For the year ended 31 December 2023
12. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (CONT'D)
12.2 Valuation techniques (cont'd)
Trade receivables (subject to provisional pricing) (cont'd)
Description of valuation technique used and key inputs to valuation of the trade receivables.
Type of financial instrument | Fair Value as at 31 December | Valuation Technique | Significant inputs | ||
2023 | 2022 | ||||
ZW$000 | ZW$000 | ||||
Trade receivables (subject to | (76 043) | - | DCF | Estimated future commodity | |
provisional pricing) | prices. | ||||
Fair Value through Other Comprehensive Income (FVOCI) investments
The fair value of the FVOCI investments has been determined using the net asset value (NAV) of the investee. Management has evaluated and believes that NAV provides the most reliable and reasonable fair value after taking into account of the information available, the nature and operations of the investee and the purpose of the Group's investment in the investee.
The shares of the investee are not publicly traded and there are no other similar companies in the same market whose shares are publicly traded. Furthermore, the investee does not have a history of declaring dividends. The Group does not have access to the investee's future plans and budgets given the size of its shareholding in the investee. After considering the above factors and the materiality of the investment, management believes that NAV gives the best estimate of the investment's fair value.
Below is the financial information of the investee that was used to calculate the fair value.
2023 | 2022 | |
Audited | Audited | |
ZW$000 | ZW$000 | |
Total assets | 116 148 403 | 2 909 022 |
Total liabilities | (12 630 666) | (1 321 168) |
Net asset value | 103 517 737 | 1 587 854 |
Fair value of investment (1.553%) | 1 607 630 | 24 659 |
AUDITOR'S STATEMENT
The abridged consolidated financial results should be read in conjunction with the complete set of financial statements of RioZim Limited for the year ended 31 December 2023, which have been audited by Mazars Public Auditors and Accountants (Zimbabwe), signed by Lovemore Kamuzangaza, PAAB Practicing Certificate number 0425 and an unqualified opinion issued there on. The auditor's report for the year then ended carries a key audit matter, outlining the audit process that required significant attention to the auditor relating to impairment of assets.
The auditor's report on the financial statements is available for inspection at the Company's registered office and the same has been lodged with the Zimbabwe Stock Exchange.
DIRECTORS: S R Beebeejaun (Chairman), C Dengu (Deputy Chairman), R Swami* (Chief Executive Officer), M S Bindra, G R Flanagan, M T Sachak, A P Shanghavi - Executive*
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RioZim Ltd. published this content on 14 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 May 2024 07:17:01 UTC.
