Padenga’s gold mining arm powers 38% revenue surge
STAFF WRITER
Padenga Holdings Limited, the Victoria Falls Stock Exchange-listed diversified group, has delivered a robust set of results for the six months ended June 30, 2025, buoyed by the strong performance of its gold mining operations under Dallaglio. Revenue from continuing operations surged 38% to US$130.68 million, up from US$94.88 million last year, largely on the back of increased production and firmer international gold prices.
Chairman Thembinkosi Nkosana Sibanda said gold operations were the clear growth engine, realising an average gold spot price of US$3 106/oz compared to US$2 198/oz in the prior year. Production volumes at Eureka Gold Mine climbed 22% to 391kg, while gold sales rose 17% to 411kg. “The Group is scaling down on the size of its operation from 3 farms to 2 farms that will produce 25 000 skins down from 45 000 skins,” Sibanda said, noting that restructuring in the crocodile unit was designed to restore profitability in a softer luxury market.
The mining arm’s contribution to group revenues grew to 94%, up from 88% in the prior comparative period. Dallaglio recorded a half-year profit before tax of US$41.31 million, up 204% year-on-year, after turnover increased 41% to US$123.4 million. Earnings before interest, tax, depreciation, and amortisation (EBITDA) more than doubled, leaping 129% to US$48.1 million, highlighting strong margins and efficiency gains.
The crocodile operations, however, faced headwinds, with sales volumes of skins declining 6% and revenue slipping 1% as demand for smaller skins fell in the luxury goods market. Sibanda said Padenga Agribusiness embarked on a “business right-sizing exercise” to realign operations with market realities, confident that the reduced scale would bring costs down to sustain profitability levels.
Padenga’s balance sheet remained strong, with current assets of US$93.28 million against liabilities of US$42.41 million, ensuring comfortable liquidity. Net cash generated from operations more than doubled to US$39.89 million from US$18.9 million, reflecting high-quality earnings and enabling reinvestment. Net cash used in investing activities totalled US$12.4 million, underscoring management’s focus on capital projects, especially mining expansion.
The group is advancing the Pickstone Peerless Mine expansion, which is expected to further lift production and revenues in the second half of the year. Sibanda said the crocodile unit, though under pressure, would continue to focus on optimising production and increasing high-end alligator skin sales. “After the right-sizing, the crocodile business will enjoy the same level of profitability as before the reduction in operating expenses,” he said.
Looking ahead, Padenga sees its outlook anchored on gold mining strength, favourable prices, and disciplined cost control. While risks remain from volatile commodity prices and a challenging luxury market, the group’s diversification strategy and robust cash flows place it in a strong position to sustain growth.
