RioZim : 2022 FY Results & Audit Report

R I O Z I M L I M I T E D

AUDITED ABRIDGED FINANCIAL RESULTS

FOR THE YEAR ENDED 31 DECEMBER 2022

Head Office: RioZim Limited

1 Kenilworth Road, Highlands, Harare. P O Box CY 1243, Causeway, Highlands, Harare, Zimbabwe

Telephone: [phone],

Cell: [phone], Fax: 746228.

CHAIRMAN'S STATEMENT

INTRODUCTION

The success of the Group this year is testament to the shareholders' continued dedication to the Group. By investing in excess of US$100million, the Group delivered two milestone high-tech expansion projects to secure the future of the Company, these being: the Biological Oxidation (BIOX) plant at Cam & Motor mine and Project Crown Jewel 500tph plant at RZM Murowa. These two multimillion dollar investments in the Company came in the face of a mix of macroeconomic adversities, power shortages and increased global uncertainty.

The BIOX plant was officially commissioned by His Excellency the President of the Republic of Zimbabwe Cde. E.D. Mnangagwa on the 14th of April 2022.

This project will resuscitate mining operations and bring a new lease of life to Kadoma town and its surrounding communities.

Notwithstanding the positive contributions of these two projects to the Group's production, the Company continued to suffer from acute power supply

challenges, which significantly weighed down the Group's efforts to increase

production volumes. Foreign currency challenges and exchange rate distortions

also continued to negatively impact the Group's profitability. The Group

however, welcomes the efforts by the Government to address these challenges as shown by the upward revision of the United Stated dollar retention ratio from 60% to 75% subsequent to period end in February 2023.

GROUP PERFORMANCE

Gold production recorded a 17% decline to 929kg from 1122kg produced in the prior year. Subsequent to the commissioning of the BIOX plant at Cam & Motor mine, the Group focused on optimising the plant to bring it to name plate capacity and eliminating teething challenges hence production was subdued. Dalny was placed under full care and maintenance during the year, which exacerbated the decline in gold production for the current year. The gold price

remained firm and fairly consistent from the prior year and averaged US$1 766/ oz for the year compared to US$1 774/oz in the prior year. The Group's revenue

for the year was ZW$20.6 billion, which was an exponential increase from the prior year's revenue of ZW$5.8 billion despite the decline in gold production mainly due to the depreciation of the local currency against the United States dollar.

GOLD BUSINESS

Renco Mine

Power supply challenges worsened at Renco mine in the current year which significantly cut back production running time. Resultantly, gold production

dropped by 28% from prior year's production of 561kg to 402kg in the year

under review. The Group is focusing on back-upgenerators to lessen the negative impact of acute power supply deficits to the mine despite the higher

operating costs these come with.

Dalny Mine

Dalny was placed under full care and maintenance from the beginning of the year after it ran out of open pit resources that could be mined economically at sustainable grades. Consequently, there was no production during the current

year which is in contrast to the 209kg produced in 2021 when the mine was fully operational. In order to reduce the cash flow impact of the fixed care and

maintenance costs, the mine embarked on small scale mining operations, which were at an advanced stage as at year end.

One-Step Mine

The Group was focused on the resumption of mining operations at the Cam

• Motor pits in preparation for the running of the BIOX plant which was at completion stage at the beginning of the year. Consequently, mining operations at One-Step were discontinued at the close of 2021 hence no gold was produced from One-Step in the current year. The Group continues to evaluate all available options for the future exploitation of its One-Step resource.

Cam & Motor Mine

Mining operations commenced from the refractory sulphide Cam & Motor pits as the year started to pave way for the commissioning and bringing into production the BIOX plant. The BIOX plant was successfully brought into production from February 2022 in test mode and successfully commissioned in April 2022. The plant experienced some teething challenges which were successfully resolved as the year progressed. The mine therefore, produced 527kg for the year thus achieving a 50% growth compared to 351kg produced from One-Step mining operations in the prior year. Despite this, the plant operated well below its capacity due to suppy challenges as with our other operations.

BASE METALS BUSINESS

The Refinery operated under care and maintenance throughout the period.

There was no traction in the current year on the Company's efforts to secure raw

material feed for the Refinery. Engagements to secure potential sources of raw

material are continuing and our stakeholders will be kept informed. Meanwhile

CHROME BUSINESS

The legal dispute relating to the Company's chrome claims in Darwendale still

awaited finalisation by the courts as at year end.

DIAMOND BUSINESS

RZM Murowa (Private) Limited managed to successfully complete and bring to production its Project Crown Jewel 500tph plant in the second half of the

year. The forecast production upside from the plant will however, only reflect

subsequent to year end as focus in the current year was on stabilising and optimising the plant. Production for the year therefore, marginally increased by 3% to 426 000 carats compared to the 2021 production of 414 000 carats. There were no mining activities from the pits and material processed was obtained from the pre-mined low grade and tailings stock piles. The Associate continues to expand its exploration activities including detailed evaluations on extending the life of its pits to further extend life of mine. The Associate

continues to contribute to the overall profitability of the Group as share of profit from the Associate was ZW$102.1 million whilst the prior year's profit

contribution was ZW$525.8 million.

ENERGY BUSINESS

178MW Solar Project

Progress on the project had been stalled due to the COVID-19 pandemic with traction only recorded in obtaining all the regulatory requirements for the implementation of the solar projects across the Group's mines. The Group has since resumed engagements with various potential funding partners after the relaxation of the COVID-19 protocols worldwide. The Group remains optimistic

of reaching financial closure for the solar projects.

2 800MW Sengwa Power Station

The Company continued its engagements with various stakeholders during the year for potential partnerships on this project and our stakeholders will be timely informed on any further developments.

OUTLOOK

The future prospects of the Group are underpinned on the successful performance of the BIOX plant at Cam & Motor mine and the 500tph plant at RZM Murowa once all the necessary teething challenges are addressed.

Plant recoveries are forecast to stabilise at Cam & Motor mine going forward as the mine has now gained considerable understanding of the operating

modalities of the BIOX plant. The Group is also benefitting from the pool of skills

from the various experts that were brought in to train our technicians.

Power supply remains a major threat to the Group's operations. The Group is focusing on back-up power generators across the mines albeit this will be

at a significantly high operating cost. In the medium to long term, the Group

continues to pursue its pipeline power projects, with particular focus on solar energy, which will be a lasting solution to the power challenges for the mines.

The COVID-19 pandemic has since eased after an increase in cases at the beginning of the year due to the emergence of the Omicron variant. The various protocols that were in place were relaxed allowing free movement of people and cargo both locally and across borders. Despite a positive outlook, the Group remains observant of the prevailing situation and has maintained strict health and safety controls across the Group.

DIRECTORATE

There were no changes in the directorate in the current year.

DIVIDENDS

No dividends were declared for the period.

APPRECIATION

I would like to extend my appreciation to my esteemed Directors for leading

the Company through yet another difficult year. I am confident that the

milestone projects achieved under the Directors' oversight in the current year

will spearhead the Group back to profitability. The continued resilience and dedication of our Management and Employees to the Company is commendable.

I further acknowledge the support the Company receives from our stakeholders; we sincerely value you.

The RioZim Financial Results are available on the following websites:

www.riozim.co.zw

www.zse.co.zw

Members may also obtain a copy of the Financial Results from the QR Code .

ABRIDGED CONSOLIDATED STATEMENT OF PROFIT OR LOSS

for the year ended 31 December 2022

		31 Dec 2022	31 Dec 2021
		Audited	Audited
	Notes	ZW$000	ZW$000
Revenue		20 595 816	5 768 667
Cost of sales		(19 665 336)	(5 747 486)
Gross profit		930 480	21 181
Distribution and selling costs		(8 363)	(16 093)
Administrative expenses		(10 644 214)	(1 694 868)
Loss on disposal of property, plant
and equipment		-	(134)
Other income		555 265	135 701
Operating loss		(9 166 832)	(1 554 213)
Finance costs		(1 396 788)	(129 451)
Share of profit from an associate		102 149	525 847
Loss before tax		(10 461 471)	(1 157 817)
Income tax expense		(9 579 151)	(940 125)
Loss for the year		(20 040 622)	(2 097 942)
Loss for the year attributable to:
Owners of the parent		(19 988 335)	(2 088 185)
Non-controlling interests		(52 287)	(9 757)
		(20 040 622)	(2 097 942)
Loss per share (cents):
Basic	8	(16 379.85)	(1 711.21)
Diluted basic	8	(16 379.85)	(1 711.21)

ABRIDGED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the year ended 31 December 2022

	31 Dec 2022	31 Dec 2021
	Audited	Audited
	ZW$000	ZW$000
Loss for the year	(20 040 622)	(2 097 942)
Other comprehensive income
Other comprehensive income to be reclassified
to profit or loss:
Foreign currency translation gains	19 819 191	1 666 641
Net other comprehensive income to be
reclassified to profit or loss	19 819 191	1 666 641
Other comprehensive income/(loss) not to be
reclassified to profit or loss:
Re-measurement losses on defined benefit plans	(214 217)	(1 531)
Income tax effect	52 954	378
Fair value gain on other comprehensive
income investments	10 768	915
Income tax effect	(538)	(46)
Net other comprehensive loss
not to be reclassified to profit or loss	(151 033)	(284)
Total other comprehensive income for the
year, net of tax	19 668 158	1 666 357
Total comprehensive loss for the year	(372 464)	(431 585)
Total comprehensive loss attributable to:
Owners of the parent	(114 746)	(394 845)
Non-controlling interests	(257 718)	(36 740)
	(372 464)	(431 585)

the Refinery continued with its various cash generating projects to maintain the

integrity of the plant and to fund some of its care and maintenance costs.

S R BEEBEEJAUN

CHAIRMAN

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

ABRIDGED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

as at 31 December 2022

		31 Dec 2022	31 Dec 2021
		Audited	Audited
	Notes	ZW$000	ZW$000
ASSETS
Non-current assets
Property, plant and equipment	9	47 891 528	8 319 842
Exploration, evaluation and development assets	10	8 679 608	1 078 280
Right of use asset		81 744	22 728
Investment in associate company		18 521 109	2 882 544
Employee benefit asset		-	200 284
Fair value through other comprehensive income
investments	11	24 659	13 891
Total non-current assets		75 198 648	12 517 569
Current assets
Inventories	5	9 565 620	1 520 076
Trade and other receivables		4 795 721	1 274 808
Cash and cash equivalents		394 558	84 437
Total current assets
	14 755 899	2 879 321

R I O Z I M L I M I T E D

AUDITED ABRIDGED

FINANCIAL RESULTS

FOR THE YEAR ENDED 31 DECEMBER 2022

Head Office: RioZim Limited

1 Kenilworth Road, Highlands, Harare. P O Box CY 1243, Causeway, Highlands, Harare, Zimbabwe

Telephone: [phone],

Cell: [phone], Fax: 746228.

ABRIDGED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the year ended 31 December 2022

ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT

			Fair value through	Foreign			Non-
	Share	Share	other comprehensive	currency	Accumulated		controlling	Total
	capital	premium	income reserve	translation reserve	losses	Total	intrests	equity
	ZW$000	ZW$000	ZW$000	ZW$000	ZW$000	ZW$000	ZW$000	ZW$000
Balance as at 1 January 2021	1 345	20 789	12 304	4 309 410	27 617	4 371 465	3 650	4 375 115
Loss for the year	-	-	-	-	(2 088 185)	(2 088 185)	(9 757)	(2 097 942)
Other comprehensive income/(loss) net of tax	-	-	869	1 693 624	(1 153)	1 693 340	(26 983)	1 666 357
Total comprehensive income/(loss)	-	-	869	1 693 624	(2 089 338)	(394 845)	(36 740)	(431 585)
Balance as at 31 December 2021	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

Total assets		89 954 547	15 396 890
EQUITY & LIABILITIES
Shareholders' equity
Share capital		1 345	1 345
Share premium		20 789	20 789
Fair value through other comprehensive income
reserve		23 403	13 173
Accumulated losses		(22 211 319)	(2 061 721)
Foreign currency translation reserve		26 027 656	6 003 034
Equity attributable to equity holders
of the parent		3 861 874	3 976 620
Non-controlling interests		(290 808)	(33 090)
Total equity		3 571 066	3 943 530
Non-current liabilities
Interest-bearing loans and borrowings	7	1 466 173	811 190
Mine rehabilitation provision		2 486 067	333 074
Other payables	6	20 706 978	3 288 201
Deferred tax liabilities		10 904 633	1 377 898
Employee benefit liability		169 321	-
Lease liabilities		94 463	13 417
Total non-current liabilities		35 827 635	5 823 780
Current liabilities
Trade and other payables	6	42 312 856	4 534 473
Interest-bearing loans and borrowings	7	8 225 156	1 085 077
Lease liabilities		17 834	10 030
Total current liabilities		50 555 846	5 629 580
Total liabilities		86 383 481	11 453 360
Total liabilities and shareholders' equity		89 954 547	15 396 890

ABRIDGED CONSOLIDATED STATEMENT OF CASHFLOWS

For the year ended 31 December 2022

		31 Dec 2022	31 Dec 2021
		Audited	Audited
	Notes	ZW$000	ZW$000
Net cash flows from operating activities		7 352 781	1 612 717
Cash flows from investing activities
Investment in exploration and evaluation
assets	10	(1 869 390)	(490 884)
Additions to property, plant and equipment	9	(2 456 696)	(2 494 764)
Proceeds on disposal of property, plant
and equipment		-	410
Net cash used in investing activities		(4 326 086)	(2 985 238)
Cash flow from financing activities		-	-
Inflows from borrowings		362 695	1 364 431
Repayment of borrowings		(3 296 061)	(40 833)
Repayment of lease liability		(47 474)	(5 337)
Net cash (used)/generated from financing
activities		(2 980 840)	1 318 261
Net increase/(decrease) in cash and cash
equivalents		45 855	(54 260)
Unrealised exchange gains on foreign
currency balances		264 266	43 903
Cash and cash equivalents at beginning
of period		84 437	94 794
Cash and cash equivalents at 31 December
	394 558	84 437
Represented by:
Cash at bank and on hand		394 558	84 437

NOTES TO THE ABRIDGED CONSOLIDATED

FINANCIAL STATEMENTS (cont'd)

For the year ended 31 December 2022

1. 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), 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 2022.
   The consolidated abridged financial statements are presented in Zimbabwean dollars
   (ZWL), 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).
   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 ZWL. The closing interbank exchange rate as at 31 December 2022 was 684.33 (2021: 108.67).
2. 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).

NOTES TO THE ABRIDGED CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2022

1. 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 31 March 2023.

4. 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.

	31 Dec 2022	31 Dec 2021
	Audited	Audited
	ZW$000	ZW$000
5. INVENTORIES
Stores and consumables	6 418 250	1 013 891
Ore stockpiles	730 302	81 937
Metals and minerals in concentrates and circuit	2 241 194	377 411
Finished metals	175 874	46 837
	9 565 620	1 520 076

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

NOTES TO THE ABRIDGED CONSOLIDATED

FINANCIAL STATEMENTS (cont'd)

For the year ended 31 December 2022

	31 Dec 2022	31 Dec 2021
	Audited	Audited
	ZW$000	ZW$000
6. TRADE AND OTHER PAYABLES
Trade payables	5 515 700	1 092 460
Other payables	35 056 220	3 178 706
Leave pay liabilities	1 740 936	263 307
	42 312 856	4 534 473
Non-current
Other payables	20 706 978	3 288 201
	20 706 978	3 288 201

7. INTEREST-BEARING LOANS AND BORROWINGS

	Effective		31 Dec 2022	31 Dec 2021
Intrest rate		Audited	Audited
	%	Maturity	ZW$000	ZW$000
Current
Bank loans
(facility limit US$15.5m)	10%	On scheduled dates	5 761 220	693 812
Other term loan	0%	December 2019*	2 463 936	391 265
			8 225 156	1 085 077
Non-current
Bank loans	10%	On scheduled dates	1 466 173	811 190
			1 466 173	811 190

* These facilities matured and are overdue.

Security

Bank loans were secured by revenue assignment agreement in respect of gold proceeds and some item of property, plant and equipment. All other interest bearing loans are unsecured.

R I O Z I M L I M I T E D

AUDITED ABRIDGED

FINANCIAL RESULTS

FOR THE YEAR ENDED 31 DECEMBER 2022

Head Office: RioZim Limited

1 Kenilworth Road, Highlands, Harare. P O Box CY 1243, Causeway, Highlands, Harare, Zimbabwe

Telephone: [phone],

Cell: [phone], Fax: 746228.

NOTES TO THE ABRIDGED CONSOLIDATED FINANCIAL STATEMENTS (cont'd)

For the year ended 31 December 2022

9. PROPERTY, PLANT AND EQUIPMENT

	Land and	Plant and	Heavy mobile	Capital 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 2021	2 232 118	1 703 621	367 961	1 307 387	18 709	71 281	5 701 077
Additions	2 169	162 629	229 750	2 069 365	25 277	5 574	2 494 764
Transfers	-	-	-	(186 043)	-	-	(186 043)
Disposals	-	-	-	-	(2 283)	-	(2 283)
Foreign currency translation exchange gain	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
Additions	-	360 165	-	2 033 303	38 464	24 764	2 456 696
Transfers	-	22 080 058	(118 706)	(23 457 457)	118 706	-	(1 377 399)
Foreign currency translation exchange gain	13 746 714	5 831 459	1 950 453	19 337 834	(64 933)	426 266	41 227 793
At 31 December 2022	16 731 375	30 135 060	2 647 080	1 785 489	169 349	498 130	51 966 483
Accumulated Depreciation
At 1 January 2021	148 262	352 302	153 741	-	18 685	9 254	682 244
Depreciation charge for the year	89 082	310 749	226 057	-	22 753	10 405	659 046
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 year	371 461	1 295 724	942 588	-	85 896	39 735	2 735 404
At 31 December 2022	608 805	1 958 775	1 322 386	-	125 595	59 394	4 074 955
Net book value
At 31 December 2021	2 747 317	1 200 327	435 535	3 871 809	37 413	27 441	8 319 842
At 31 December 2022	16 122 570	28 176 285	1 324 694	1 785 489	43 754	438 736	47 891 528
10. EXPLORATION, EVALUATION AND DEVELOPMENT ASSETS	11. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES (cont'd)

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:

	31 Dec 2022	31 Dec 2021
	Audited	Audited
	ZW$000	ZW$000
Loss attributable to equity holders of the parent for
basic earnings	(19 988 335)	(2 088 185)
Adjustment Headline earnings
Loss on disposal of property,plant and equipment	-	134
Headline loss	(19 988 335)	(2 088 051)
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 and diluted earnings per share.

Loss per share (cents)
Basic	(16 379.85)	(1 711.21)
Diluted basic	(16 379.85)	(1 711.21)

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.

			Total exploration
Exploration and	Development	evaluation and
evaluation assets	costs development assets
	ZW$000	ZW$000		ZW$000
Cost
At 1 January 2021	71 130	768 020		839 150
Additions	72 968	417 916		490 884
Transfers	-	186 043		186 043
Foreign currency translation exchange gain	-	12 354		12 354
At 31 December 2021	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	447 543	4 704 606		5 152 149
At 31 December 2022	2 174 353	7 753 016		9 927 369
Amortisation
At 1 January 2021	71 130	204 597		275 727
Amortisation for the year	-	174 424		174 424
At 31 December 2021	71 130	379 021		450 151
Amortisation for the year	-	797 610		797 610
At 31 December 2022	71 130	1 176 631		1 247 761
Carrying amount
At 31 December 2021	72 968	1 005 312		1 078 280
At 31 December 2022	2 103 223	6 576 385		8 679 608

11. 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.

11.1 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
2022
FVOCI investments	-	-	24 659
Impact of level 3 measurements on
Other Comprehensive Income			10 768
2021
FVOCI investments	-	-	13 891
Trade receivables (subject to provisional pricing)	-	78 134	-
Impact of level 3 measurements on Other
Comprehensive Income	-	915	-

There were no transfers in or transfers out of Level 3 and Level 2 financial instruments

11.2 Valuation techniques

Trade receivables (subject to provisional pricing)

The Group have trade receivables (subject to provisional pricing) arising from provisional

pricing sales arrangements which the Group enters 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.

Description of valuation technique used and key inputs to valuation of the trade receivables.

Type of financial instrument	Fair Value as at 31	Valuation	Significant
			December	Technique	inputs
		2022	2021
		ZW$000	ZW$000
Trade receivables (subject to				Estimated future
provisional pricing)	-	78 134	DCF commodity prices
					Quantities and
					final assays

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.

		31 Dec 2022	31 Dec 2021
			ZW$000	ZW$000
Total assets		2 909 022	1 272 126
Total liabilities		(1 321 168)	(377 653)
Net asset value		1 587 854	894 473
Fair value of investment (1.553%)		24 659	13 891

12.EVENTS AFTER THE REPORTING PERIOD

Subsequent to period end, the portion of sales revenue received in USD for exporters including the Group's mineral exports was increased to 75% with effect from February 2023 from 60% which prevailed at period end. This was a positive development as it will increase the availability of foreign currency for the Group, which was already short considering the Group's requirements including funding of its projects.

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 2022, 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), M M Shah* (Chief Executive Officer), M S Bindra, G K Jain, M T Sachak, R Swami* - Executive*