Padenga buoyant

SAMANTHA MADE

Padenga Holdings Limited, a publicly traded diversified group, is charting a firm course toward long-term success, buoyed by the stellar performance of its mining division and a decisive restructuring of its agribusiness operations.

Group chairman Thembinkosi Nkosana Sibanda said the company’s solid financial results and operational reforms underscored a “resilient business model” and “disciplined execution,” which have positioned Padenga for sustainable growth.

“The group remains on a strong profitability growth trajectory, underpinned by a resilient business model and disciplined execution,” Sibanda said. “Borrowings have significantly reduced, and our focus remains on efficient cost optimization.”

The group is pushing ahead with several high-impact projects to strengthen its mining arm, including underground development and gravity circuit upgrades at Pickstone and Eureka mines, as well as major solar power installations to support sustainable operations.

At Eureka Mine, the Mining and Geology teams are advancing evaluation and blasting trials to improve slope angles in the open pit — a move expected to extend the mine’s productive life.

“Steeper slope angles present an opportunity to mine deeper into the resource, thereby extending the life of the open pit mine,” Sibanda explained. “The extent of the additional pit life gained in this manner will be confirmed in Q3.”

Meanwhile, at Pickstone Mine, early results from the latest drilling campaign show a 30% increase in contained ounces compared to previous estimates.

“An external, independent review of the updated block model is scheduled for Q3 to confirm these results and inform the 2026 mining plan,” Sibanda added.

In the agribusiness division, Padenga has completed a major right-sizing exercise, discontinuing operations at the Ume Crocodile Farm by June 30, 2025. The restructuring, Sibanda noted, allows the group to channel resources toward its more profitable gold mining operations.

Financially, the results have been striking. Revenue surged 38% to US$130.68 million for the six months ended June 30, 2025, up from US$94.88 million in the same period last year — largely driven by higher gold prices and increased production.

“The group recorded revenue of $130.68 million for the six months under review, a 38% increase over the $94.88 million recorded in the prior period,” Sibanda said. “This positive performance was largely attributable to the mining division, which benefited from firmer gold spot prices and production volumes that surpassed targets and the prior year.”

Profit before tax jumped a remarkable 306% to US$41.10 million, compared to US$10.12 million a year earlier, while basic earnings per share climbed to 3.24 cents, up from 0.75 cents.

Sibanda said management remained upbeat about the company’s outlook, confident that its strategy of disciplined capital allocation and operational agility would continue to deliver value for shareholders.

“The group’s growth trajectory remains strong, and management is confident in delivering long-term value for shareholders while navigating the evolving business landscape with agility,” he said.