Padenga Holdings Limited has reported a robust performance for the half-year ended 30 June 2026, with sharp growth in revenue, profitability and balance sheet strength, underpinned by higher gold prices and improved output from its Zimbabwe mining operations.
The group’s key performance indicators showed significant momentum during the period. Profit after tax rose to US$82.7 million from US$29.4 million in the first half of 2025. Basic earnings per share increased by 217 percent to 10.28 cents from 3.24 cents, a performance reflected in the 212 percent growth highlighted in the salient features. The interim dividend per share was up 177 percent to 3.19 cents from 1.15 cents. The market share price strengthened to 112.00 cents from 24.49 cents, lifting market capitalisation to US$961.7 million as at 30 June 2026 from US$193.2 million at the end of December 2025.
Net assets grew to US$231.6 million from US$169.7 million. Cash generated from operating activities more than doubled to US$99.2 million from US$39.4 million, while free cash flow improved to US$103 million from US$21.5 million, underscoring the group’s ability to convert earnings into cash. Cash and cash equivalents closed the half at US$62.9 million, substantially higher than the US$8.2 million held at 31 December 2025.
Revenue grew by 44 percent to approximately US$187.7 million from US$130.6 million in the prior comparable period, driven by higher gold prices and increased sales volumes, with Zimbabwe mining operations contributing 97 percent of turnover.
The balance sheet was strengthened during the period, with total assets increasing to US$310.4 million from US$259.4 million at 31 December 2025, supported by higher inventories, receivables and cash holdings, while total equity improved to US$231.6 million from US$169.9 million. Borrowings declined to US$22.3 million from US$35.9 million, comprising US$11.6 million current and US$10.6 million non-current, secured against property and equipment at interest rates of between 10 and 13 percent. Cash generated from operations was US$99.2 million, while net cash inflow from investing activities was US$2.9 million and net outflow from financing activities was US$18.9 million.
The company noted that the global economy faced headwinds in the first half from geopolitical tensions and trade disruptions that weighed on economic activity and growth expectations, although gold prices provided support and rose above US$3,000 per ounce during the period. Locally, the operating environment showed improved stability in the first half of the year, supported by lower inflation, exchange rate stability and improved confidence, which allowed for better planning and cost management, while the foreign currency retention framework remained in place and the group continued to manage currency exposures prudently.
Mining operations delivered higher output, with gold production at Eureka Mine improving by 4 percent to 1,041 kgs in the first half of 2026. Operational performance was supported by ongoing investment in mine development, drilling and operational optimisation, while Pickstone mine also made solid progress against operational development targets, with initiatives to maintain production while containing previous mining bottlenecks. A total of 13,381 metres were drilled from surface and underground exploration during the half-year, targeting resource extension, mine life extension and the identification of additional opportunities.
The crocodile business sustained a significant number of skins in stock and delivered firm grading, with the 2026 harvesting programme underway and showing improved quality. The division’s farms remain compliant with the International Crocodile Farmers Association standards as certified under EPA 1001:2022. Crocodile biological assets were valued at US$429,000 for breeding stock and US$20.8 million for harvest stock, with the group continuing to apply fair value accounting.
Capital expenditure for the period amounted to US$10.2 million, up from US$4.9 million, with authorised and contracted capital commitments of US$20.5 million. Key projects include the Eureka Mine upgrade project, which is expected to come on stream in September 2026 following delays in equipment arrival to unlock recovery and realise benefits of recent investments; the Oylstone Cluster Upgrade Project at Eureka Mine to optimise throughput and increase processing capacity; the Eureka 12MW solar project, which achieved first power at 2.6MW capacity in 2025 with a target to reach full 12MW generation capacity through 2026 to 2027 aimed at reducing operating costs and supporting sustainability objectives; and underground development at Pickstone and Prestwood, where Phase 1 of the Pickstone Underground project continues to deliver against production targets, Phase 3 of shaft sinking is in progress with completion expected in the first quarter of 2026, and Phase 4 is focused on maintaining production continuity beyond current mining areas with completion in the second quarter of 2027.
The group continued to embed sustainability into its business, with commercial production of solar power at 5.4MW at Eureka generating approximately 3.6 GWh of electricity in the period, and at full capacity the solar plants are expected to generate approximately 18 GWh per year, translating to between 1.1 GWh and 1.75 GWh per month.
The board declared an interim dividend of 3.19 US cents per share, up from 1.15 cents, payable to shareholders on the register as at close of business on 9 October 2026, with payment on or around 16 October 2026. Shares will trade cum-dividend up to 7 October 2026 and ex-dividend from 8 October 2026 on the Victoria Falls Stock Exchange.
The company’s strong performance was a testament to the dedication of management and employees, and it remains well-positioned for the second half, anchored by its diversified portfolio, ongoing investment in mining and energy, and focus on operational discipline, community development and shareholder value.
