Padenga seals acquisition of the remaining 49% of Dallaglio stake

ROBIN PHIRI

Padenga Holdings, a publicly traded diversified group, has successfully completed the acquisition of the remaining 49% stake in Dallaglio Investments, solidifying its full ownership of the mining company.

This move marks a significant milestone in Padenga’s strategic expansion, reinforcing its position in Zimbabwe’s extractive industry and diversifying its revenue streams beyond its traditional crocodile skin business.

Dallaglio Investments operates key mining assets in Zimbabwe, including the Pickstone-Peerless Mine near Chegutu and the Eureka Gold Mine near Guruve,  among others.

By integrating Dallaglio fully into its operations, Padenga aims to enhance efficiency, unlock new growth opportunities, and mitigate risks associated with the fluctuating global luxury skin market.

The latest development was confirmed by Padenga’s Chief Financial Officer, Oliver Kamundimu, who emphasised the significance of the transaction.

“We have successfully concluded the purchase of the remaining 49% minority stake in Dallaglio, securing full control of the company. This acquisition aligns with our long-term strategy to expand our operational footprint and enhance our overall value proposition,” Kamundimu stated.

He highlighted that the acquisition comes at a crucial time when the global crocodile skin market is experiencing volatility due to shifting consumer preferences and post-pandemic economic adjustments.

By expanding its mining operations, Padenga is positioning itself to counterbalance these uncertainties and drive sustainable growth.

“This transaction strengthens our production capacity, diversifies our revenue streams, and allows us to explore new markets while driving operational efficiencies,” Kamundimu added.

Padenga’s CEO, Michael Fowler, underscored the strategic benefits of integrating Dallaglio’s operations under Padenga’s full ownership.

“The capital development of the Pickstone underground mine remains a priority in 2025, with an additional $13m earmarked for underground shafts and haulage equipment,” Fowler stated.

Since 2022, total investment in Pickstone’s underground expansion has reached $44m.

These developments are expected to significantly enhance production volumes and operational efficiencies from the 2026 financial year onwards, enabling the company to tap into previously untouched gold reserves.

“We continue to assess and pursue mining opportunities, both within and beyond our current portfolio. Zimbabwe holds vast potential in gold mining, and we are committed to exploring these opportunities to drive long-term growth,” Fowler said.

Padenga Holdings has reported impressive financial results, with revenue increasing by 43% and profit before tax surging by 242%. These robust figures highlight the effectiveness of the company’s strategic investments, particularly the acquisition of Dallaglio, in driving profitability and delivering value to shareholders.

Kamundimu also pointed to the company’s improved financial position, noting a substantial reduction in its gearing ratio from 71% to 37%.

This indicates a stronger balance sheet and enhanced financial stability, providing a solid foundation for future expansion.

“With a healthier capital structure and improved cash flow, we are well-positioned to execute our long-term growth strategy while maintaining financial resilience,” Kamundimu remarked.

As Padenga embarks on this new phase with Dallaglio, stakeholders can expect a focused approach toward innovation, market expansion, and sustainable business practices.

The acquisition reflects Padenga’s commitment to diversifying its operations and strengthening its competitive advantage in both the agribusiness and mining sectors.

By fully integrating Dallaglio, Padenga aims to maximise operational efficiencies, unlock new revenue streams, and solidify its standing as a major player in Zimbabwe’s mining industry. With strategic investments driving growth, the company is poised to deliver sustained value, resilience, and long-term returns for shareholders and stakeholders alike.