Eureka helps Padenga lift revenue 31pc

Padenga Holdings has posted a 31 percent increase in revenue to US$74,4 million in six months ended June 30, 2023 compared with the same period last year, buoyed by “significant” contributions from Eureka Gold Mine.

In an interim financial statement for the period under review, Padenga, which is into gold mining through Dallaglio Investments, Eureka Gold Mine and Pickstone Peerless Mine, said the positive revenue performance was coupled with the carry forward of crocodile skin sales from last year.

“The revenue performance for the group was largely due to the significant contributions from Eureka Gold Mine, coupled with the carry forward of skin sales from 2022,” said the group.

In the period under review, Dallaglio’s contribution to revenue was 84 percent compared to 91 percent during the same period last year.

A reduction of 15 percent was recognised on net interest expense for the group at US$3,7 million compared to US$4,3 million in the corresponding period last year owing to restructuring of borrowings.

Profit before tax was US$7,5 million for the six months compared to US$15,7 million posted in the first half last year.

“The group generated cash amounting to US$12,9 million against US$3,7 million in the same period last year from operating activities for the year.

“The increase in cash generated was mainly due to improved revenues and efficiencies,” said Padenga.

On Dallaglio, Padenga said the mining subsidiary maintained its spot as one of Zimbabwe’s top three gold producers after delivering 1 080 kilogrammes of the yellow metal in the six months to June 2023.

During the same period last year, Dallaglio produced 933 kg.

Its profit before tax amounted to US$5,4 million in the period under review compared to US$12,9 million in the corresponding period last year.

“Dallaglio Investments maintained its spot as one of the top three gold producers in the country after registering gold sales of 1 080kg.

“The volume growth of 16 percent was largely driven by increased plant throughput at Eureka Mine,” it said.

The major capital project for the period under review was the refurbishment of the underground mine at Pickstone Peerless Mine in Chegutu with phase 1 of the project having been completed last month.

 “The first phase of the project was completed in August 2023, and commercial production has started. 

“This is poised to contribute significantly to the group’s revenue and profits, going forward,” said Padenga.

Production levels at Pickstone are expected to reach close to 140kg by next year.

For the second year-running, Eureka Mine continues to deliver robust performance, contributing significantly to volume growth and profitability.

“Various operations and cost optimisation initiatives are in progress to further consolidate this growth,” said Padenga.

Revenue from the crocodile increased by 128 percent compared to the same period in prior year.


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