Padenga Holdings crocodile venture seals new contracts

Padenga Holdings Limited, a crocodile rearing business-cum-gold miner’s operation at Dallaglio says the exotic skins luxury market remains extremely resilient in the current global economic environment and the operation is well positioned to remain a significant player in the value chain.

The firm has concluded new contract negotiations with customers that ensure the future viability of the business.

In its consolidated financial for the six months to 30 June 2023, revenue for the crocodile business increased by 128 percent in comparison to the same period in the prior year, as a result of 10 000 skins sold from harvests carried over from the prior year and a 16 percent improvement in average realisation per skin.

“The crocodile operation continues with its initiatives to produce high quality skins that are consistent with premium market expectations. The business has successfully concluded new contract negotiations with customers that ensure the future viability of the business.

“The exotic skins luxury market remains extremely resilient in the current global economic environment, and the operation is well positioned to remain a significant player in this value chain.”

The operating unit incurred half year exchange losses of US$985 425 compared to exchange gains of US$1 839 995 in prior year when the operating unit benefited from significant Zimbabwean dollar denominated loans. Consequently, a 77 percent improvement in EBITDA was recorded to a loss of US$627 644 in the current year from a loss of US$2 695 413 in the prior year.

A reduced biological asset valuation gain of US$5810 141 (fair value gain of US$442 934 in H1 2022), was recorded due to the write down in value of prior years’ stock skins being sold at discounted prices.

Resultantly, a profit before taxation of US$2 792 352 was achieved, compared to US$2 917 924 recorded in the same period last year, the group said.

The crocodile operation generated US$2 489 629 in cash from operating activities for the six months period under review (US$2 219 437 generated Hl 2022), benefiting from the improved revenues. In August, the listed diversified company restructured its operations after the approval by shareholders at an extraordinary general meeting (EGM).

The company, which has operations in crocodile farming and skin selling, avocado farming and mining operations, has split the group into two divisions – agribusiness and mining.

On the mining unit, Dallaglio recorded a profit before tax of US$5 247 015 down from a prior year profit of US$12 902 577 of the same period in 2022.

A turnover of US$62 659 854 was achieved (US$51 718 639 Hl 2022), which is a 21 percent increase.

The incremental revenue was achieved on the strength of increased output and the effect of firmer gold price during the first half of 2023, the group said.

The firm said going forward, an area of key focus is operationalising Pickstone Peerless underground mining. The first phase of the project was completed in August this year and commercial production has started.

This is poised to contribute significantly to the Group’s revenue and profits, going forward.

It noted that for the second year running, Eureka mine continues to deliver robust performance, contributing significantly to volume growth and profitability.

Various operations and cost optimisation initiatives are in progress to further consolidate this growth.-chronicle