Publicly traded diversified group,Padenga Holdings Limited, is accelerating plans to ramp up gold production and deepen its mineral resource base, targeting annual attributable output of between 90 000 and 95 000 ounces, up from just below 80 000 ounces currently.
The group has earmarked US$18m for fresh investments aimed at expanding production from both existing and new mining operations as it positions itself to fully capitalise on firm global bullion prices.
Riding on the back of strong international gold prices, Padenga is actively pursuing opportunities to strengthen output across its mining portfolio while also scouting for strategic acquisitions.
At the same time, the group is working to stabilise its legacy crocodile business, which has increasingly taken a secondary role in the company’s earnings mix.
Board chairman Themba Sibanda said the mining operations were now firmly positioned to become the dominant earnings driver for the group amid rising investor appetite for safe-haven assets.
“The group is targeting total attributable gold production of between 90 000 and 95 000 ounces,” Sibanda said.
The mining division has budgeted US$18m for exploration activities focused on increasing both the size and confidence levels of its mineral resource inventory.
“Dallaglio has expanded its geology skills and will drill significantly more in 2026. With investment to date of US$59m and an additional US$18m budgeted for 2026, the underground mine at Pickstone will increase volumes in 2026. The Cordillera Joint Venture is expected to continue contributing positively to the group,” Sibanda said.
He said the planned drilling campaign would increase resources and reserves, improving production from owned claims while also opening up new prospects.
“At Pickstone, drilling will be in areas not previously mined and also in the Peerless ore body,” he said.
Sibanda added that planning and development for mining below the 10th level at Pickstone was already under way, while investigations at Eureka Mine were progressing on the feasibility of underground operations beneath the current open pit, which is expected to remain operational until 2039.
“We continue to investigate and explore other gold mining opportunities for the group to grow. Eureka Mine maintains robust production levels. After initial contracting and logistical delays, the 4.9MW solar project at Pickstone Peerless Mine is at an advanced stage, with first power planned for Q1 2026. At Eureka Mine, the gravity circuit upgrade work progressed during the year and commissioning is expected in Q2 2026,” Sibanda said.
The gravity circuit upgrade is expected to improve overall plant recovery efficiencies at Eureka.
During the period under review, the group said its mines maintained steady production through disciplined operations, infrastructure investment, enhanced workforce capability and improved equipment reliability.
Padenga also intensified its environmental, social and governance initiatives during the year.
“We strengthened environmental management through initiatives such as the expansion of the Eureka Tailings Storage Facility, alignment with global tailings standards, and improved water efficiency via a pre-leach thickener. Energy and climate action remained priorities, with solar projects at Eureka and Pickstone Peerless advancing into construction, alongside ongoing efforts to enhance energy efficiency and better understanding of climate-related risks and opportunities,” Sibanda said.
“In addition, Dallaglio’s investment in community development initiatives amounted to US$2.10m across both production and non-production areas during the year under review.”
In a recent trading update, the group said gold production from its mining subsidiary, Dallaglio Investments, rose 13% to 696.7kg in the quarter ended March 31, compared to 618.9kg recorded in the same period last year.
The increase was largely driven by improved average mill feed grades at both Eureka and Pickstone operations.
The production growth comes at a time when global bullion prices remain near historic highs, buoyed by geopolitical tensions, central bank purchases and rising investor demand for safe-haven assets.
Padenga said the average gold spot price during the quarter surged to US$4 875 per ounce, compared to US$2 887 in the comparable period last year.
For Zimbabwe’s mining sector, where producers are benefiting from elevated bullion prices despite rising royalties and tighter policy measures, the performance further underlines gold’s growing importance in corporate earnings and export generation.
However, the group also flagged the impact of changes to Zimbabwe’s royalty framework following the introduction of a sliding-scale royalty system under which gold sold above US$5 000 per ounce attracts a 10% royalty, replacing the previous flat 5% structure.
Despite the higher royalty burden, Padenga said it remained optimistic about the outlook for the remainder of the year.
“A robust financial performance is expected through to year-end for Dallaglio, supported by stable and consistent production at Eureka Mine, improving ore hoisting performance at Pickstone Mine, and a favourable gold price outlook that remains at elevated levels,” the company said.
Padenga is simultaneously accelerating capital expenditure programmes aimed at improving processing efficiencies and expanding production capacity.
While mining dominated the quarter, the group’s agribusiness division also recorded a sharp rise in sales volumes, although profitability pressures persist due to subdued global luxury leather demand.
The company sold 17 667 crocodile skins during the quarter, representing a 172% increase from 6 495 skins sold in the comparable period last year.
The increase, however, was largely driven by discounted clearance sales of excess inventory accumulated from previous harvests following a rightsizing exercise.
Padenga’s crocodile business, once the group’s flagship operation before its strategic pivot into mining, continues to battle difficult international market conditions.
Gold mining is increasingly emerging as the engine powering Padenga’s growth trajectory, with agribusiness steadily becoming a secondary contributor to the group’s overall earnings profile. – (Business Times)
