Murowa Diamonds has reported a sharp financial downturn for the half-year ended 30 June 2025, swinging from profit to loss as global diamond prices continue to fall. The mine, an associate of RioZim Limited, posted a ZWG28.0 million share of loss, a dramatic reversal from the ZWG5.6 million profit recorded during the same period last year.
By Nyasha Sungiso
The company attributed the downturn to sustained pressure from depressed international diamond prices, which have severely weakened profitability and cash flow across the global diamond industry. In response to the challenging market environment, Murowa scaled down operational activity while focusing on cost containment and operational optimisation.
Operational Challenges Deepen
The half-year loss adds to an already difficult period for Murowa Diamonds, which has been battling long-standing operational constraints. The mine’s 2024 full-year performance, as reported by RioZim, reflected an operation under severe stress. Plant throughput collapsed by 47%, primarily due to the poor availability of heavy mobile equipment that had exceeded its economic life. Frequent breakdowns crippled production and reduced overall efficiency.
These challenges directly affected output. Carat production fell 13% to 359,000 carats in 2024, down from 414,000 carats the previous year. The situation became unsustainable, forcing Murowa to decommission its entire heavy mobile equipment fleet and shift to a model reliant on hired machinery for material handling.
The financial consequences were significant. The operational collapse resulted in a net loss in 2024, translating to a ZWG66 million share of loss for RioZim—an enormous jump compared to the ZWG95,000 loss recorded in the prior year.
A Strategic Pivot Toward Recovery
Despite the bleak financial results, Murowa Diamonds has initiated key measures aimed at stabilising operations and restoring profitability. Following an extensive exploration programme, the mine has commenced in-pit mining activities designed to improve ore grade and enhance carat recovery.
This strategic shift focuses on extracting higher-grade ore, enabling the mine to increase carat output without proportionally increasing production volumes. The goal is to strengthen operational efficiency and profitability in a low-price market, offering a pathway to stabilisation and eventual recovery.
Outlook
The first half of 2025 paints a picture of a company grappling with significant market and operational pressures. The ZWG28 million loss reflects the harsh realities of the global diamond market, while the legacy of operational breakdowns continues to weigh heavily on performance.
However, the move toward higher-grade in-pit mining signals a determined effort to rebuild. Murowa Diamonds is not merely enduring difficult conditions—it is repositioning itself for a potential turnaround through grade improvement, efficiency gains, and strategic adaptation.
The success of this recovery plan will determine whether Murowa can regain stability and restore profitability in the challenging months ahead.