RIOZIM 03774 PAGE 1 OF 3

RIOZIM LIMITED

REVIEWED
GROUP INTERIM
FINANCIAL RESULTS
FOR THE HALF YEAR ENDED 30 JUNE 2022

REGISTERED OFFICE:
1 Kenilworth Road Highlands, Harare, Zimbabwe

CHAIRMAN’S STATEMENT CONDENSED CONSOLIDATED STATEMENT OF

PROFIT OR LOSS
for the six months ended 30 June 2022
INTRODUCTION
30 Jun 2022 30 Jun 2021
The COVID-19 pandemic receded from the beginning of the year and as a result various economic activities which had been furloughed since the onset of the pandemic slowly Reviewed Reviewed
recommenced. This came as a positive development for the economy as stringent border controls, travel restrictions and other mandatory protocols were gradually relaxed Note ZW$000 ZW$000
facilitating smooth movement of people and cargo.
Revenue 6 4 756 485 2 628 184
Cost of sales (4 602 322) (2 587 832)
Despite the positive strides in the free flow of economic activities, the operating environment remained bedevilled with structural challenges throughout the period, most notably
Gross profit 154 163 40 352
amongst them were acute power shortages, spiralling exchange rates, unreasonable pricing distortions and huge foreign currency inadequacies. Notwithstanding the various Administrative expenses (2 544 621) (1 067 498)
mitigating initiatives put in place by the Group to counteract these challenges, the impact of these factors had a significant negative effect on the operating and financial performance Other income 98 668 76 240
of the Group. Consequently, the Group recorded a net loss for the six-month period. Operating loss (2 291 790) (950 906)
Finance cost (221 892) (23 251)
GROUP PERFORMANCE Share of profit from an associate 83 813 252 891
Loss before taxation (2 429 869) (721 266)
Gold production for the period declined by 30% to 393kg compared to 564kg achieved in the same period in the prior year. The subdued production was mainly attributable to the Income tax expense (3 039 249) (758 440)
Loss for the year (5 469 118) (1 479 706)
negligible production output at Dalny during the period coupled with under capacity utilisation at Cam & Motor after discontinuance of the One Step operation to pave way for the

resumption of mining activities at Cam & Motor. Gold prices firmed up by 3% during the period and averaged US$1 834/oz against an average price of US$1 777/oz recorded in the
Loss for the year attributable to:
comparative period. Equity holders of the parent (5 463 730) (1 478 204)
Non-controlling interests ( 5 388) (1 502)
Revenue generated during the period was ZW$4.8 billion in comparison to ZW$2.6 billion recorded in the prior year. In spite of the reduction in gold production, revenue increased (5 469 118) (1 479 706)
due to the steep depreciation of the local currency against the United States dollar as the average exchange rate moved from US$1:ZW$88 in the six-month period in the prior year Loss per share (cents)
to US$1:ZW$176 in the current period. However, this had a counter-balancing effect with costs rising disproportionately higher than revenue. The low gold production volumes Basic (4 477) (1 211)
coupled with the adverse effect of exchange rates distortions on costs, plunged the Group into a net loss of ZW$5.5 billion for the period under review. Diluted (4 477) (1 211)

GOLD BUSINESS
CONDENSED CONSOLIDATED STATEMENT OF
Renco Mine OTHER COMPREHENSIVE INCOME
The mine’s production for the period fell by 37% to 174kg from 278kg achieved in the same period in prior year. The low gold production was a result of low milled tonnage arising
from severe power challenges during the first quarter and lost production due to a month long labour dispute in the second quarter. The labour dispute was amicably resolved and for the six months ended 30 June 2022
industrial relations at the mine are now stable after the engagements and interventions by management.
30 Jun 2022 30 Jun 2021
Dalny Mine Reviewed Reviewed
Dalny mine suffered from unsustainable low grades from its pits which resulted in the mine suspending operations for the six-month period under review. A marginal 8kg of gold Note ZW$000 ZW$000
was produced for the period against 105kg produced in the comparative period when the mine was fully operational. The mine’s underground shafts are currently flooded and will
Loss for the year (5 469 118) (1 479 706)
require an extensive dewatering exercise to bring them to mineable conditions. After careful consideration, the mine was put on full care and maintenance subsequent to period end

and some small scale mining projects are being undertaken to sustain the care and maintenance costs.
Other comprehensive income to
be reclassified to profit or loss:
Cam & Motor Mine Foreign currency translation exchange gains 9 369 724 134 521
The primary focus at Cam & Motor during the period was the completion of the BIOX Plant Project and resumption of mining activities at the high grade Cam & Motor mine pits. Income tax effect - -
Mining activities at One Step mine were therefore suspended from the beginning of year to pave way for a smooth transition back to mining and production from the Cam & Motor Net other comprehensive income to be
mine pits. Testing of the BIOX Plant and its separate components commenced in haste from the beginning of the year which brought the plant to completion at the end of the first reclassified to profit or loss 9 369 724 134 521
quarter. Due to a mix of the discontinuance of One Step operations and testing of the BIOX Plant production for the period was depressed at 211kg even though this was a slight
improvement from 181kg achieved in the comparative period. Other comprehensive income not to be
reclassified to profit or loss - -
Total other comprehensive income for the
BIOX Plant Project year net of tax 9 369 724 134 521
The BIOX Plant was successfully completed and commissioned by His Excellency the President of The Republic of Zimbabwe Cde. E. D. Mnangagwa on the 14th of April 2022.
Total comprehensive income/(loss)
BASE METALS BUSINESS for the period 3 900 606 (1 345 185)

The Empress Nickel Refinery continued under care and maintenance throughout the period. Total comprehensive income/(loss)
attributable to:
CHROME BUSINESS
Equity holders of the parent 3 961 870 (1 343 683)
Non-controlling interests (61 264) (1 502)
The Company’s chrome claims in Darwendale remain under litigation pending finalisation in the courts.
3 900 606 (1 345 185)

DIAMOND BUSINESS
CONDENSED CONSOLIDATED STATEMENT OF
The Group’s associate produced 115 000 carats for the period which was 52% below the 240 000 carats produced in the comparative period. During the period the mine stopped FINANCIAL POSITION
mining operations and migrated to processing its vast low grade stock piled dumps. This initiative resulted in low carats production for the period as the current plant has a limited as at 30 June 2022
plant processing capacity of 190tph.
30 Jun 2022 31 Dec 2021
The Crown Jewel Project which will increase the processing capacity on the current plant by circa three fold progressed well during the period and was brought to completion stage Reviewed Audited
by period end. The Plant was commissioned subsequent to period end and production has since commenced from the new plant. Note ZW$000 ZW$000

Due to the low carats production the share of profit from the associate declined to ZW$83.8 million from ZW$252.9 million recorded in the comparative prior period. ASSETS
Non-current assets
ENERGY BUSINESS Property, plant and equipment 10 27 460 442 8 319 842
Exploration and development assets 3 706 322 1 078 280
178 MW Solar Project Right of use assets 60 967 22 728
The Company concluded all the regulatory requirements which are the prerequisites to the implementation of the solar projects across the Group’s mines. Negotiations on funding Investment in associate 11 8 248 565 2 882 544
arrangements with potential funders of the project which had stalled in the prior year due to COVID-19 uncertainties were recommenced during the period as the pandemic declined Employee benefit assets 200 284 200 284
at a global scale. Fair value through other comprehensive
income investments 13 13 891 13 891
2 800 MW Sengwa Power Station Total non-current assets 39 690 471 12 517 569
The Company is in discussions with various stakeholders including various arms of government on a potential mutually beneficial arrangement on the implementation of this multi-
million dollar project. All our stakeholders will be kept abreast of all developments on an ongoing basis. Current assets
Inventories 7 5 429 786 1 520 076
OUTLOOK Trade and other receivables 3 361 675 1 274 808
Cash and cash equivalents 304 692 84 437
The Company is set to ramp up production on the BIOX plant in the second half of the year which will take the Group to stable production and return to profitability. However Total current assets 9 096 153 2 879 321
the operating environment remains uncertain due to a massive shortage of foreign currency, shortage of power and lack of availability of consumables in local currency. That
notwithstanding, the Company remains optimistic of a positive turnaround on the operating environment through the strenuous efforts that the Government is making on many Total assets 48 786 624 15 396 890
fronts.
EQUITY & LIABILITIES
The Group has spent over USD 110 million on the BIOX plant and the 500 tph diamond processing plant much of which was borrowed in USD and has to be repaid in the same Shareholders’ equity
currency. With a mandatory liquidation of 40% the amount of foreign exchange remaining with the Group has consistently proved insufficient to sustain costs. Production is erratic Share capital 1 345 1 345
owing to the lack of foreign currency to buy consumables or carry out repair and maintenance and production plant. The Company has resorted to borrowing from the major Share premium 20 789 20 789
shareholder again in foreign currency and contingent plans are being prepared for further borrowings in the short term as and when required. Fair value through other comprehensive
income reserve 13 173 13 173
Despite the relaxation of the COVID-19 protocols by the Ministry of Health and Child Care during the period, the Group remains vigilant and alert to any potential threats to our Foreign currency translation reserve 15 428 634 6 003 034
employees and the communities we operate in. The Company continues with its vaccination drive among its employees and within the communities which will contribute towards Accumulated losses (7 525 451) (2 061 721)
achieving herd immunity. Equity attributable to equity holders
of the parent 7 938 490 3 976 620
Non-controlling interests (94 354) (33 090)
DIRECTORATE Total equity 7 844 136 3 943 530

There were no changes to the Board of Directors during the period under review. Non-current liabilities
Interest-bearing loans and borrowings 9 1 828 405 811 190
DIVIDENDS Provisions 1 199 363 333 074
Other payables 8 11 224 726 3 288 201
After careful consideration of the Group’s cash flow position there was no interim dividend declared during the period. Deferred tax liabilities 4 417 147 1 377 898
Lease liability 58 946 13 417
APPRECIATION Total non-current liabilities 18 728 587 5 823 780

I would like to extend my sincere gratitude to my fellow Directors for their continued unrivalled commitment to the Company and their illustrious leadership in steering the Company Current liabilities
during this immensely difficult period. I would also like to express my appreciation to our Management and Staff for their continued efforts and fortitude in the face of the adverse Trade and other payables 8 17 540 083 4 534 473
conditions that the Company is facing. I urge everyone to work together to the best of their abilities to turn the Company around. Interest-bearing loans and borrowings 9 4 649 039 1 085 077
Lease liability 24 779 10 030
Total current liabilities 22 213 901 5 629 580

Total liabilities 40 942 488 11 453 360
S R BEEBEEJAUN
CHAIRMAN Total equity and liabilities 48 786 624 15 396 890
25 August 2022

DIRECTORS: S R Beebeejaun (Chairman), C Dengu (Deputy Chairman), *M M Shah (Chief Executive Officer), G K Jain, M T Sachak, M S Bindra , *R Swami (Chief Finance Officer) - Executive*
 RIOZIM 03774 PAGE 2 OF 3
RIOZIM LIMITED

REVIEWED
GROUP INTERIM
FINANCIAL RESULTS
FOR THE HALF YEAR ENDED 30 JUNE 2022

REGISTERED OFFICE:
1 Kenilworth Road Highlands, Harare, Zimbabwe

CONDENSED CONSOLIDATED STATEMENT OF CONDENSED CONSOLIDATED STATEMENT OF

CHANGES IN EQUITY CASHFLOWS

for the six months ended 30 June 2022 for the six months ended 30 June 2022
ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT

30 Jun 2022 30 Jun 2021

Reviewed Reviewed
Fair value through Foreign Total Non- Note ZW$000 ZW$000
Share Share other comprehensive currency Accumulated shareholders controlling Total
capital premium income reserve translation reserve losses equity interests equity
Net cash flows from operating activities 419 755 102 624
ZW$000 ZW$000 ZW$000 ZW$000 ZW$000 ZW$000 ZW$000 ZW$000
Cash flows from investing activities
Investment in exploration and evaluation assets (174 341) (42 702)
Balance at 1 January 2021 1 345 20 789 12 304 4 309 410 27 617 4 371 465 3 650 4 375 115
Additions to property, plant and equipment 10 (122 244) (832 652)
Loss for the period - - - - (1 478 204) (1 478 204) (1 502) (1 479 706) Net cash used in investing activities (296 585) (875 354)
Other comprehensive income net of tax - - - 134 521 - 134 521 - 134 521
Cash flow from financing activities
Total comprehensive income/(loss) net of tax - - - 134 521 (1 478 204) (1 343 683) (1 502) (1 345 185) Inflows from borrowings 196 609 683 360
Balance as at 30 June 2021 (reviewed) 1 345 20 789 12 304 4 443 931 (1 450 587) 3 027 782 2 148 3 029 930 Repayment of borrowings (157 875) -
Lease liability paid - (3 752)
Net cash generated from financing activities 38 734 679 608
Balance 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 period - - - - (5 463 730) (5 463 730) (5 388) (5 469 118) Net increase/(decrease) in cash and cash
equivalents 26 362 (93 122)
Other comprehensive income/(loss) net of tax - - - 9 425 600 - 9 425 600 (55 876) 9 369 724 Unrealised exchange gains on foreign
Total comprehensive income/(loss) net of tax - - - 9 425 600 (5 463 730) 3 961 870 (61 264) 3 900 606 currency balances 135 542 141 116
Cash and cash equivalents at beginning
Balance as at 30 June 2022 (reviewed) 1 345 20 789 13 173 15 428 634 (7 525 451) 7 938 490 (94 354) 7 844 136
of period 142 788 94 794
Cash and cash equivalents at 30 June 304 692 142 788
NOTES TO THE CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS NOTES TO THE CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS (CONT’D)
for the six months ended 30 June 2022
5. OPERATING SEGMENTS (CONT’D)
1. GENERAL INFORMATION
 ioZim 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
R The following table presents segment assets and liabilities of the Group’s operating
operations and a metallurgical plant. segments as at 30 June 2022.

The Company is a limited liability company incorporated and domiciled in Zimbabwe. The address of its registered office is 1 Kenilworth Road, Highlands, Harare. The Company is
listed on the Zimbabwe Stock Exchange. These condensed consolidated financial statements were authorised for issue by the Board of Directors on 25 August 2022.
Gold Base Metals Adjustments Consolidated
ZW$000 ZW$000 ZW$000 ZW$000
2. BASIS OF PREPARATION
The condensed consolidated financial statements of the Group have been prepared using accounting policies consistent with International Financial Reporting Standards (IFRS) and
Operating assets
in accordance with International Accounting Standard 34 Interim Financial Reporting and the disclosure requirements of the Companies and Other Business Entities Act (Chapter
30 June 2022 32 747 837 3 199 500 12 893 287 48 786 624
24:31).
31 December 2021 9 893 751 1 038 777 4 464 362 15 396 890

 The condensed consolidated financial statements are presented in Zimbabwean Dollars (ZW$), and all values are rounded to the nearest thousand (ZW$000), except where
Operating liabilities
otherwise indicated. The Group’s functional currency is the United States Dollar (US$).
30 June 2022 6 244 981 13 499 347 21 198 160 40 942 488
31 December 2021 1 738 068 4 036 764 5 678 528 11 453 360
The condensed 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 2021.
Interest-bearing liabilities and certain assets such as Fair Value Through Other
Comprehensive Income Investments, Investments in Associate and cash and cash
The Group used interbank exchange rates to convert all transaction and balances from the Group’s functional currency United States Dollar (US$) to the reporting currency
equivalents are not allocated to segments as they are also managed on a Group basis.
Zimbabwean Dollar (ZW$). The closing interbank exchange rate as at 30 June 2022 was 370.96 (31 December 2021: 108.67).
These are included in adjustments in the segment disclosures.
In 2019, the Public Accountants and Auditors Board (PAAB) issued a pronouncement that factors and characteristics for the application of IAS 29 “Financial Reporting in Hyper-
30 Jun 30 Jun
Inflationary Economies” in Zimbabwe were met and therefore mandated IAS 29 to be applied in the preparation and presentation of financial statements for entities in Zimbabwe.
2022 2021
Hyper-inflation financial reporting is however, applicable to entities whose functional currency is the currency in hyper-inflation.
Reviewed Reviewed
ZW$000 ZW$000
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.
6. REVENUE
3. SIGNIFICANT JUDGEMENTS AND ESTIMATES
Gold 4 728 469 2 628 184
When preparing the condensed consolidated financial statements, management undertakes a number of judgements, estimates and assumptions about recognition and
Base metals 28 016 -
measurement of assets, liabilities, income and expenses. The actual results may differ from the judgements, estimates and assumptions made by management, and will seldom
Total revenue 4 756 485 2 628 184
equal the estimated. The judgements, estimates and assumptions applied in the interim condensed consolidated financial statements, including the key sources of estimation
uncertainties were the same as those applied in the Group’s annual financial statements for the year ended 31 December 2021.
30 Jun 31 Dec
4. SIGNIFICANT ACCOUNTING POLICIES
2022 2021
 he condensed consolidated financial statements have been prepared in accordance with the accounting policies adopted in the Group’s annual financial statements for the year
T
Reviewed Audited
ended 31 December 2021 and applicable amendments to International Financial Reporting Standards (IFRS).
ZW$000 ZW$000
7. INVENTORIES
5. OPERATING SEGMENTS
Management has determined the Group’s operating segments based on the information reviewed by the Board of Directors for the purpose of allocating resources and assessing Stores and consumables 3 296 025 1 013 891
performance. Ore stockpiles 526 346 81 937
Metals and minerals in concentrates and circuit 1 474 611 377 411
The Group’s management monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment. Finished metals 132 804 46 837
Segment performance is evaluated based on operating profit or loss and is measured consistently with operating profit or loss in the consolidated financial information. However, the 5 429 786 1 520 076
Group’s financing (including finance costs and finance income), income taxes and share of profit from an associate are managed on a group basis and are not allocated to operating
Inventory writen-down during the period amounted
segments.
to nil (Jun 2021:Nil)
Transfer prices between operating segments are on an arm’s length basis in a manner similar to transactions with third parties. 8. TRADE AND OTHER PAYABLES

The Group’s operating segments are as follows: Current
Trade payables 3 743 881 1 092 460
Gold segment Accruals 991 790 149 421
This operating segment develops and mines gold that is ultimately sold as gold bullion. Leave pay liabilities 927 558 263 307
Statutory liabilities 537 521 437 940
Other payables 11 339 333 2 591 345
Base Metals segment 17 540 083 4 534 473
This operating segment comprises of Base metals (Nickel, Copper and PGM’s) producing assets.
Current other payables include balances owed to
The following table presents revenue and profit information about the Group’s operating segments for the six months ended 30 June 2022: related parties and sundry creditors.

Non-current
Six months ended 30 June 2022: Gold Base Metals Adjustment Consolidated Other payables* 11 224 726 3 288 201
ZW$000 ZW$000 ZW$000 ZW$000

Revenue *Non-current Other payables relate to BCL Limited (in liquidation) liability which is under
External customers 4 728 469 28 016 - 4 756 485 litigation which has been outstanding since 2016. The legal matter is not expected to be

settled in the 12 months from the reporting period, therefore the amount owing has been
Results
Segment loss (1 122 159) (353 311) (816 320) (2 291 790) classified under non-current.
Finance cost (221 892)
Share of profit from an associate 83 813
Income tax expense (3 039 249) 9. INTEREST-BEARING LOANS AND BORROWINGS
Loss for the period (5 469 118)
Effective Maturity 30 Jun 31 Dec
Depreciation (795 312) (52 769) (17 139) (865 220) interest rate Date 2022 2021
Amortisation of development costs (103 263) - - (103 263) Reviewed Audited
ZW$000 ZW$000
Capital expenditure 252 851 3 629 40 105 296 585

Six months ended 30 June 2021 Current

Revenue
Bank loans
External customers 2 618 184 - - 2 628 184
(facility limit US$16.0m) 10% On scheduled dates 3 313 402 693 812
Results Term loan 0% December 2019 1 335 637 391 265
Segment loss (328 727) (173 254) (448 925) (950 906) 4 649 039 1 085 077
Finance cost (23 251)
Non-current
Share of profit from an associate 252 891
Income tax expense (758 440) Bank loans 10% On scheduled dates 1 828 405 811 190
Loss for the period (1 479 706) 1 828 405 811 190

Depreciation (249 684) (29 497) (10 695) (289 876)
Security
Amortisation of development costs (67 864) - - (67 864)
Bank loans are secured by revenue assignment agreements in respect of gold proceeds.
Capital expenditure 1 126 695 6 605 67 997 1 201 297 All other interest bearing loans and borrowings are unsecured.

DIRECTORS: S R Beebeejaun (Chairman), C Dengu (Deputy Chairman), *M M Shah (Chief Executive Officer), G K Jain, M T Sachak, M S Bindra , *R Swami (Chief Finance Officer) - Executive*
 RIOZIM 03774 PAGE 3 OF 3
RIOZIM LIMITED

REVIEWED
GROUP INTERIM
FINANCIAL RESULTS
FOR THE HALF YEAR ENDED 30 JUNE 2022

REGISTERED OFFICE:
1 Kenilworth Road Highlands, Harare, Zimbabwe

NOTES TO THE CONDENSED CONSOLIDATED NOTES TO THE CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS (CONT’D) FINANCIAL STATEMENTS (CONT’D)

for the six months ended 30 June 2022 13. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (CONT’D)

10. PROPERTY, PLANT AND EQUIPMENT Level 1 Level 2 Level 3

Recurring fair value measurements (cont’d) ZW$000 ZW$000 ZW$000

Land and Plant and Heavy mobile Capital work Motor Furniture 31 December 2021
buildings equipment equipment in progress vehicles and fittings Total FVOCI investments - - 13 891
Cost ZW$000 ZW$000 ZW$000 ZW$000 ZW$000 ZW$000 ZW$000 Trade receivables (subject to
provisional pricing) - 78 134 -
At 1 January 2021 2 232 118 1 703 621 367 961 1 307 387 18 709 71 281 5 701 077 Impact of level 3 measurements
Additions 2 169 162 629 229 750 2 069 365 25 276 5 574 2 494 763 on Other Comprehensive Income - - 915
Transfers - - - (186 043) - - (186 043)
Foreign currency translation exchange gain - - - - (2 282) - (2 282) There were no transfers in or transfers out of Level 3 and Level 2 financial instruments.
Disposals 750 374 (2 872) 217 622 681 100 35 409 (29 755) 1 651 878
At 31 December 2021 2 984 661 1 863 378 815 333 3 871 809 77 112 47 100 9 659 393 Trade receivables (subject to provisional pricing)
Additions - 6 032 - 97 445 10 846 7 921 122 244 The Group had trade receivables (subject to provisional pricing) arising from provisional
Transfers - 10 041 977 (64 348) (10 041 977) 64 348 - - pricing sales arrangements which the Group entered into with some of its metals in
Foreign currency translation exchange gain 6 278 258 5 294 238 882 537 7 220 772 (22 977) 230 749 19 883 577 concentrate customers. Final settlement value would be based on final dry weight, agreed
At 30 June 2022 9 262 919 17 205 625 1 633 522 1 148 049 129 329 285 770 29 665 214 assays and final prices which were to be determined at the end of the Quotational Period
(QP), usually 60 days after date of shipment. The QP is the period after the physical
Accumulated depreciation shipment of goods during which the price and grade of mineral sold is subject to change due
At 1 January 2021 148 262 352 302 153 741 - 18 685 9 254 682 244 to fluctuations in commodity prices.
Depreciation charge for the year 89 082 310 749 226 057 - 22 753 10 405 659 046
Description of valuation technique used and key inputs to valuation of the trade receivables
Disposals - - - - (1 739) - (1 739)
At 31 December 2021 237 344 663 051 379 798 - 39 699 19 659 1 339 551

Depreciation charge for the period 107 557 475 318 244 670 - 25 470 12 206 865 221
Fair value as at: Valuation Significant
At 30 June 2022 344 901 1 138 369 624 468 - 65 169 31 865 2 204 772
Type of financial instrument 30 June 31 Dec Technique inputs

2022 2021
Net book value
ZW$000 ZW$000
At 31 December 2021 2 747 317 1 200 327 435 535 3 871 809 37 413 27 441 8 319 842
Trade receivables
At 30 June 2022 8 918 018 16 067 256 1 009 054 1 148 049 64 160 253 905 27 460 442
(subject to provisional pricing) 68 244 78 134 DCF Estimated
future commodity
prices. Quantities
and final assays

Valuation techniques
11. INVESTMENT IN ASSOCIATE Fair Value through Other Comprehensive Income (FVOCI) investments
The fair value of the FVOCI investments has been determined using the net asset value (NAV)

The Group has a 22.2% (2021: 22.2%) interest in Murowa Diamonds (Private) Limited, an unlisted diamonds mining company, operating in Zimbabwe. The associate is strategic to
the Group as it brings diversity to the Group’s major minerals which are gold and base metals. 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
 The Group’s interest in RZM Murowa Diamonds (Private) Limited is accounted for using the equity method in the condensed consolidated financial statements. The financial period and operations of the investee and the purpose of the Group’s investment in the investee.
for the associate is the same as that of the Group. The Group trades with RZM Murowa Diamonds (Private) Limited on an arm’s length basis and there are no restrictions that affect
trading between the entities. 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
Carrying amount of the investment June Dec a history of declaring dividends. The Group does not have access to the investee’s future
2022 2021
plans and budgets given the size of its shareholding in the investee. After considering the
ZW$000 ZW$000
above factors and the materiality of the investment, management believes that NAV gives the
At 1 January 2 882 544 1 317 637 best estimate of the investment’s fair value.
Foreign currency translation gains 5 282 208 1 039 060
Share of profit from an asscociate for the the period 83 813 525 847 Below is the financial information of the investee as at 30 June 2022 that was used to
8 248 565 2 882 544 calculate the fair value.

30 June 31 Dec
12. RELATED PARTY TRANSACTIONS 2022 2021
Reviewed Audited
The following table provides the total amount of transactions that have been entered into with related parties during six months ended 30 June 2022. ZW$000 ZW$000

Rentals Services Loans from Services 1 272 126 1 272 126 Total assets
charged from charged to related charged by (377 653) (377 653) Total liabilities
related parties related parties parties related parties 894 473 894 473 Net asset value
ZW$000 ZW$000 ZW$000 ZW$000
13 891 13 891 Fair value of investment (1.553% )
RZM Murowa (Private) Limited
Jun 2022 - 91 212 1 281 969 - 14. EVENTS AFTER REPORTING PERIOD
Jun 2021 - 56 168 360 767 - Subsequent to period end, Dalny mine was placed under full care and maintenance after
its operations were suspended for the six-month period under review as the grades for
the mine’s pits became unsustainable to mine. The mine’s shafts are currently flooded and
GEM RioZim Investments Limited
Jun 2022 - - - 122 388 an extensive dewatering exercise has to be carried out to enable resuscitation of under-
Jun 2021 - - - 77 408 ground operations, albeit this requires substantial capital investment. In the face of the
current foreign currency shortages, the Group has not been able to raise the requisite
RioZim Pension Fund financing required to embark on the underground operations, and this remains a project to
Jun 2022 11 136 - - - be pursued once foreign currency availability and accessibility improves. In the interim the
Jun 2021 4 364 - - - mine embarked on small scale mining activities to sustain its care and maintenance costs.

Directors Fees
COVID-19 restrictions continued to be relaxed subsequent to period end as evidenced by
Jun 2022 - - - 6 952
removal of the mandatory wearing of masks for fully vaccinated people. The future however
Jun 2021 - - - 7 772
remains uncertain and the Group will continue to monitor the situation going forward.

The following table provides balances with related parties as at 30 June 2022: 15. GOING CONCERN
As at the reporting date the Group’s current liabilities exceeded current assets by ZW$13.1
Amount owed by Amount owed to billion (December 2021: ZW$2.7 billion) and the Group reported a net loss for the period of
related parties related parties* ZW$5.4 billion (June 2021 (ZW$1.5 billion). The Group’s gold production for the period was
ZW$000 ZW$000 subdued as operations were significantly impacted by suspension of operations at Dalny
RZM Murowa (Private) Limited mine and One Step operations which negatively affected production volumes at Dalny and
Jun 2022 - 9 709 341
Cam & Motor mine respectively. These factors ordinarily indicate the existence of a material
Dec 2021 - 1 944 930
uncertainty on the Group’s ability to continue as a going concern and that it may be unable

GEM RioZim Investments Limited to realise its assets and discharge its liabilities in the normal course of business.
Jun 2022 - 1 027 164
Dec 2021 - 375 156  he following matters, which support the appropriateness of the going concern assumption
T
in the preparation of the financial statements of the Group, have been considered by the
RioZim Pension Fund Directors:
Jun 2022 - 18 417
Dec 2021 - 1 216 • After successful commissioning of the BIOX Plant in April 2022, the Group is set to ramp
up production at Cam & Motor mine in the second half of the year. The expected increase
Directors Fees
in gold production volumes will take the Group back to profitability and generating
Jun 2022 - 25 927
Dec 2021 - 6 893 positive cash flows.

• The Group is forecast to install an additional ball mill at Renco in the short term which
*Amounts owed to related parties are included in trade and other payables in the statement of financial position. will increase the current plant processing capacity by 30%. The increased throughput
will enable the Mine to increase gold production volumes even at lower grades.
13. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES
• The Group continue to receive substantial financial support from its major shareholders

Fair value of FVOCI investments, trade receivables, interest bearing borrowings and all other receivables and payables approximates their carrying amount. through shareholder loans to stabilise working capital.

Fair value hierarchy • Cost saving initiatives continue to be pursued across the Group which will contribute

positively to the Group’s profitability.
The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:
Level 1 — Quoted (unadjusted) market 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. The Directors believe that the Group will continue to operate as a going concern and
Level 3 — Valuation techniques for which the lowest-level input that is significant to the fair value measurement is unobservable. preparation of the financial statements on a going concern basis is still appropriate. This
basis assumes that the realisation of assets and settlement of liabilities will occur in the
ordinary course of business.
Level 1 Level 2 Level 3
Recurring fair value measurements ZW$000 ZW$000 ZW$000 AUDITOR’S STATEMENT
 These interim condensed consolidated financial statements have been reviewed by
30 June 2022
KLMCA Registered Public Auditors and an unqualified review conclusion was issued
FVOCI investments - - 13 891
thereon.
Trade receivables (subject to provisional pricing) - 68 244 -
Impact of level 3 measurements on Other Comprehensive Income - - -
The reviewer’s report is available for inspection at the Group’s registered office. The
engagement partner for the review is Lovemore Kamuzangaza (PAAB Practicing
Number 0425).

DIRECTORS: S R Beebeejaun (Chairman), C Dengu (Deputy Chairman), *M M Shah (Chief Executive Officer), G K Jain, M T Sachak, M S Bindra , *R Swami (Chief Finance Officer) - Executive*