Eureka Mine helps Padenga double gold output

Diversified crocodile breeder Padenga Holdings Limited’s mining operations more than doubled gold sales volumes for the year to December 31, 2022, becoming one of the top three gold producers in the country.

The unit subsequently overturned a loss position into profitability.
According to the group, Dallaglio recorded a 101 percent growth in sales volumes to 1 961 kilogrammes of gold compared to 976 kg of gold achieved in the prior year.

Padenga said the growth was largely driven by the impact of the first full-year of operations at the Eureka gold mine.

Figures from the Victoria Falls Stock Exchange (VFEX) listed firm show that Dallaglio’s profit before tax came in at US$12,932 million compared to a loss of US$4,337 million in the prior comparable year.

“This was attributed to the increased contribution of Eureka Mine, which had not yet been fully operational during the same period last year coupled with improved gold prices,” said chairman Thembi Sibanda in an update for the year.

Consequently, cash generated from operations amounted to US$15,746 million from US$10,112 million.
The group also carried out major capital projects to support production at its mining operations.
During the year under review, Padenga refurbished the underground mine at Pickstone Peerless Mine, which is in Chegutu. Phase one of this project is scheduled for completion in August this year.

Operationalising this asset will further boost the group’s gold production and enhance earnings.
“Completion of the project is expected in August 2023 after which commercial production commences.
“This is poised to contribute significantly to the group’s revenue and profits,” he said.

The mining operation is expected to continue sustaining the group this financial year and going forward.
Overall, the group’s total revenue for the year increased 68 percent to US$127,89 million compared to US$76,09 million in 2021 with the mining operations Dallaglio contributing bulk of the revenue at 82 percent while the Zimbabwe crocodile’s business contributed 18 percent.

“Improved group revenue performance was predominantly propelled by the first full year contribution from Eureka gold mine in Guruve, which was commissioned in October 2021,” said Mr Sibanda.

According to the group, as a result of the revenue growth, cost containment measures and the swing from a loss to a gain in biological asset fair value, the group realised a profit before tax from continuing operations of US$13,89 million compared to a loss before tax of US$7,26 million recorded in the prior year.

Mr Sibanda added that revenue from the Zimbabwean crocodile business reduced by 7 percent in comparison to prior year as a result of the 17 percent decrease in the skin volumes partially offset by an improvement in the average realization per skin.

The business recorded a biological asset fair valuation gain of US$2,69 million, benefiting from higher average skin prices forecast in FY23 and an increased quantity of livestock on hand.

Resultantly, a profit before taxation of US$1,93 million was achieved, improving from a loss before tax of US$2,81 million incurred in the prior year-herald