Padenga gold output jumps 12pc in the nine months to September

PADENGA Holdings Limited says improved plant throughput at Eureka Mine and the addition of a new mill at Pickstone Peerless Mine spurred its gold mining operations performance in the nine-month period to September 2023.

The group’s gold sales grew by 12 percent to 1 665 kilogrammes from 1 480 kgs realised in the comparable period in 2022.

Due to improved milling capacity in the course of the period under review, milled ore tonnage surged five percent to 1 332 973 tonnes from 1 267 421 tonnes realised in the same period last year, bolstering the group’s overall mining performance.

Padenga remains buoyant that gold production at its operations will maintain an upward trajectory as the Pickstone underground operation is set to increase gold output for the group.

The Pickstone underground project was completed at the end of August 2023, with commercial hoisting of ore commencing in September 2023.

Padenga Holdings Limited company secretary Andrew Lorimer noted in the third quarter trading update that growth in gold sales in the nine months to 30 September 2023 was achieved on the back of an increase in tonnes milled and mill feed grade.

“This was mainly due to a positive growth in plant throughput at Eureka Mine, achieved through optimization as well as the addition of a new mill at Pickstone Peerless Mine. Mill feed grade also registered a six percent increase to 1, 42 grams per against 1,34 grams per metric last year,” said Mr Lorimer.

This comes as the group recently hinted it will likely spend US$25 million on capital expenditure towards its mining portfolio by the end of the current financial year as the company continues to buttress its mining operations.

According to Padenga, a significant chunk of the amount will be invested in the expansion of the Pickstone Peerless underground mining as the company seeks to tap into the potential high-grade gold at the Chegutu mine.

Some of the capital will be used in the re-equipment and regeneration of the mine.

“Management’s priority is to ensure a smooth ramp-up of the underground operation by the end of the financial year. The gold price outlook appears firm for the remainder of the year with prices having recovered after the reporting date.”

Padenga mining division develops and operates commercial-scale Zimbabwean gold mines and is one of the top three gold producers in the country.

For the second year running, Eureka Mine continues to deliver robust performance, contributing significantly to volume growth and profitability.

Padenga owns Eureka gold mine in Guruve, Mashonaland Central, and Pickstone Peerless Mine in Chegutu, Mashonaland West.

Eureka Mine was reopened pursuant to the Government’s push to revive all mines that were lying idle as it pins hopes on natural resources to rebuild the economy.

As such, Dallaglio (Padenga Mining segment) dispensed around US$60 million to capitalise the Eureka Mine in Guruve.

The government has been placing special focus and support on the gold mining and agriculture sectors as they are expected to spearhead the quick economic recovery of the local economy.-ebusinessweekly