By Business Reporter – Thursday 6 January 2022
HARARE (Mining Index) – PADENGA Holdings Limited’s performance is expected to be backed by mining operations as well as the higher foreign currency retention from the company’s Victoria Falls Exchange (VFEX) listing.
Following an export incentive introduced by Government in May last year, Padenga’s board made a decision to delist from the Zimbabwe Stock Exchange (ZSE) and list on VFEX, becoming the second listing on the US dollar denominated bourse on July 9, 2021.
Its gold operation, Eureka Mine, and export incentives are expected to boost the group’s revenue performance for the fully year and in future.
In the nine months to September 30, 2021, Dallaglio’s gold sales volumes fell 8 percent to 501 kilogrammes mainly due to a weak first quarter performance at Pickstone Peerless mine due to excessive rainfall.
However, the newly refurbished Eureka Mine started producing gold at the end of July and sales commenced in September last year.
The mine contributed 92 percent of gold output and was expected to ramp up to over 100 kilograms of gold per month by year end.
Mining performance will be mainly driven by the consolidation of Dallaglio.
In August 2019, Padenga diversified into gold mining following the acquisition of a 50,01 percent shareholding in Dallaglio Investments (Private) Limited. ENDS// www.miningindex.co.zw
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