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Padenga Holdings Limited’s gold mining division delivered a robust performance in 2024, underpinned by a 17% year-on-year increase in total gold production and a favorable commodity price environment that saw gold prices surge to all-time highs. The company’s twin assets, Eureka and Pickstone mines, recorded higher ore grades, improved plant recoveries, and critical operational advancements, positioning Padenga as a key player in Zimbabwe’s gold sector.
Production Gains and Operational Efficiencies
The group’s gold output reached 2,744 kg (88,252 oz) in 2024, representing a 17% increase from the previous year. Eureka Mine’s production climbed 12%, driven by a notable improvement in feed grade to 1.44 g/t, up from 1.29 g/t in 2023. Despite milling tonnage remaining steady at 1.36 million tonnes, the processing plant’s operational efficiency ensured steady gold recovery rates.
At Pickstone Mine, output surged by 25%, attributed to increased milled tonnes, enhanced plant recovery rates (now averaging 88%, up from 80% in 2023), and a higher average mill feed grade of 2.02 g/t. The mine marked a key transition in its lifecycle, with open-pit operations winding down while underground mining operations gained traction.
Underground Expansion at Pickstone
A significant milestone for Padenga’s mining division was the commissioning of Phase 1 of the Pickstone Underground Project on April 10, 2024. The Lobe sub-vertical shaft, commissioned in December 2024, enabled hoisting from Level 6, enhancing ore handling efficiencies.
Exploration activities at Pickstone also yielded promising results, with 7,375 meters drilled underground at a cost of US$908,166. Encouraging mineralized intercepts were identified at Concession Hill and Duchess Hill, which are currently being modeled for inclusion in the 2025 mine plan.
Eureka’s Strategic Upgrades and Ore Body Strength
Eureka Mine continued to demonstrate its strong resource potential, with ongoing investments in infrastructure and metallurgical enhancements. A Pre-Leach Thickener, completed in Q4 2024, has optimized gold recovery rates, improved water management, and reduced cyanide consumption—key factors in lowering processing costs and enhancing environmental compliance.
Exploration drilling at Eureka covered 2,160 meters, with geotechnical results pointing to opportunities for mine design optimization. This includes refinements to blasting techniques and final slope angles, which could unlock additional recoverable ounces from the existing open-pit reserves.
Favorable Market Tailwinds Boost Revenue
Padenga’s mining success was amplified by the 23% increase in average realized gold prices to US$2,402/oz, while the year-end spot price surged to US$2,609/oz. With all-in sustaining costs (AISC) at a four-year high of US$1,456/oz, Padenga’s efficient operations ensured healthy profit margins.
The group leveraged strong cash flows from the mining division to strengthen its balance sheet, reducing gearing to 37% from 71% in 2023, ensuring financial resilience amid global economic uncertainties.
