The operating environment in the year under review saw sustained depreciation of the ZWL and slower economic growth. In the first half of the year, First Capital Bank (FCB) completed its migration to the dollar-denominated bourse, Victoria Falls Stock Exchange, paving way for the bank to adopt the United States Dollar as its functional reporting currency.
The operating environment remained challenging, with the Group experiencing unprecedented cost pressures as operating costs maintained an upward trend in US$ terms. Regardless, Dallaglio remained one of the top three gold producers in the country. Gold sales for the period stood at 2,120kg versus 1,961kg recorded in FY22.
The year ended 31 December 2023 saw gold production at Blanket Mine register a 7.1% decrease y/y to 75,416 ounces. Tonnes milled saw a 2.4% increase to 770,440tn, however, this was offset by a lower average grade and gold recovery rate. The fourth quarter of 2022 saw the commencement of work at Caledonia’s second asset, Bilboes, with operations centred on mining and processing oxides. The oxides project yielded 3,050oz of gold at an average grade of 1.13g/t in the period under review.
The financial year remained difficult, with Dairibord operating under a complex and dynamic economic environment characterised by rapid devaluation of the Zimbabwe dollar, tight liquidity and unpredictable market conditions. Consumer buying power was suppressed owing to liquidity challenges in the economy.
The trading environment remained challenging in the period, characterised by an inflationary environment, and thereby impacting prices for retail commodities. Group performance was impacted by the aforementioned challenges and saw cigarette volumes slide 5% to 1.003bn sticks from the 1.054bn sticks sold in the previous comparable period.
The Reserve Bank of Zimbabwe delivered the highly anticipated 2024 Monetary Policy Statement (MPS) amidst a multi-currency system characterized by exchange rate and inflation volatility.
