Padenga consolidates Dallaglio results
Crocodile skins producer, Padenga Holdings Limited, will — for the first time — consolidate financial results for its recently-acquired mining operations, Dallaglio.
As a result, the group will further delay the publication of its financial results for the half year to June 30, 2020 to allow full consolidation of the financials.
This follows permission from the Zimbabwe Stock Exchange (ZSE) for a 30-day extension period for the publication of the financial results.
Company secretary, Mr Andrew Lorimer said the half-year results would now be released on or before November 30, 2020.
“Padenga shareholders are advised that the Zimbabwe Stock Exchange has granted approval to them for another 30-day extension period in which to publish its financial statements for the half-year ended June 30, 2020.
“The delay by Padenga in publishing it’s financial statements has been caused by the need to consolidate for the first time the financial results for 50,01 percent investment in Dallaglio Investment (Private) Limited (Dallaglio) mining business. The external auditors for Padenga and Dallaglio have not yet been able to complete their review of the consolidated numbers and they would like to audit the interim financials for Dallaglio,” said Lorimer in a notice to shareholders.
Padenga acquired Dallaglio, a gold mining operation, in what market watchers said was a fruitful move for the crocodile breeder as gold was a safe investment option on the back of its foreign currency generation capacity. Gold is the largest single foreign currency earner for Zimbabwe followed by tobacco. In an earnings review update, Brokerage firm IH Securities projected a surge in revenue for Padenga driven by the consolidation of the mining business.
“Total revenues for Padenga are expected to improve by 158,9 percent from US$29,12 million to US$75,41 million mainly driven by consolidation of Dallaglio.
“We have made assumptions from pro-forma statements provided in the initial transaction to acquire Dallaglio; we forecast revenue contribution from the mining operations to come in at US$37,92 million for FY20,” said IH Securities.
Dallaglio was incorporated in Zimbabwe in 2005 and owns Pickstone Peerless Mine near Chegutu which produces approximately 61 kg to 65 kg of gold per month.
The group also owns Eureka Mine near Guruve, an open pit gold mine, anticipated to produce 140kg a month.
These assets had a total measured and indicated resource of 1,6 million ounces, and a total resource of 2,2 million ounces in its 2018 financial year.-herald.cl.zw
