Victoria Falls Stock Exchange (VFEX)-listed Padenga Holdings Limited, which owns and manages two operating units—the Gold Mining unit and the Crocodile Farming Unit—has released its latest unaudited interim financial results for the six months ending June 30, 2024. The report reveals remarkable growth in its mining sector while the company grapples with challenges in its agribusiness operations.
Dallaglio Investments, Padenga’s gold mining subsidiary which operates Pickstone and Eureka Mines, achieved significant strides in gold production during this period. The company reported a 25% increase in gold sales, with 1,351 kilogrammes sold in the first half of 2024, compared to 1,080 kilogrammes in the same period the previous year.
Chairman Thembinkosi Nkosana Sibanda attributed this growth to enhanced ore grades at the Eureka Mine, improved recovery rates, and higher throughput at the Pickstone Mine. Notably, the newly opened Pickstone Underground Mine contributed 15% of the Group’s total gold output and is expected to increase its share as open-pit mining winds down.
The Group’s overall revenue surged to US$99.24 million, a 33% increase from US$74.42 million in the prior year, primarily driven by robust gold prices and consistent production levels. Dallaglio alone reported a staggering 159% rise in profit before taxation, reaching US$13.60 million. Sibanda noted that this impressive performance aligns with ongoing efforts to reduce all-in-sustaining costs and improve operational efficiencies.
In contrast, Padenga’s agribusiness segment faced notable challenges. The company operates three farms situated on the shores of Lake Kariba in north western Zimbabwe. However, skin harvest volumes plummeted by 20% during the first half of the year, resulting in a 22% decrease in skin sales compared to the previous year. Despite a 26% increase in average prices for premium skins, the overall performance of the agribusiness division remains below expectations, with a profit before taxation of only US$0.22 million, down from US$2.79 million in H1 2023.
Sibanda expressed optimism about the Group’s future, citing the continued potential for growth in gold production and the implementation of cost-containment measures to address the challenges in agribusiness. He emphasized Dallaglio’s commitment to responsible and sustainable mining practices, aiming to create lasting value for all stakeholders.
In light of these developments, the Board has declared an interim dividend of 0.40 US cents per share, highlighting the Group’s commitment to returning value to shareholders despite the agribusiness hurdles.
