daniel chigunwe
Oliver Kazunga
DALLAGLIO Investments, a mining division of Padenga Holdings Limited (PHL), has posted a whopping 159 percent increase to US$13,60 million in profit before tax in the first half ended June 30, 2024.
This was largely driven by improved revenue during the period under review.
In a statement accompanying the group’s financial results for the period under review, Dallaglio achieved a turnover amounting to US$87,68 million up from US$62,66 million in the corresponding period last year.
“Dallaglio recorded a profit before taxation of US$13,60 million which is a 159 percent increase from the US$5,25 million recorded in the same period in 2023, largely due to increased revenue,” it said.
The increase in the mining division’s turnover was mainly a result of record high gold prices that prevailed through the first half of 2024, combined with the improvement in gold production and sales compared to the corresponding period last year.
Despite the prevailing depression in the global commodities market, the price of gold on the international market has continued to firm from US$1 800 per ounce since September 2023 to over US$2 500 currently.
The price of the yellow metal on the world market is on the increase as the global village turns to gold as a safe haven asset to protect from economic and geopolitical issues.
As at June 30, 2024, Dallaglio’s EBITDA
grew 98 percent to US$23,09 million against US$11,66 million achieved in the same period last year.
This growth was driven by the increase in turnover, partly offset by an increase in costs.
Cash generated from Dallaglio’s gold operations — Eureka Mine and Pickstone Mine during the period under review amounted to US$13,49 million compared to US$10,34 million in the first half of last year.
The mining business sold 1 351 kilogrammes of gold in the first half of this year compared to 1 080 kg in the same period in 2023.
“This 25 percent growth was spurred by a combination of better ore grade at Eureka Mine, better recovery and higher plant throughput at Pickstone Mine.
“The Pickstone Underground Project Phase 1, which was completed in August 2023 and officially opened by President Mnangagwa in April this year contributed 15 percent of the group’s gold production in the period under review.
“This proportion will grow as open pit mining is wound down at Pickstone Mine in the second half of 2024.”
With Phase 1 of the Pickstone Mine underground project now in production, work on Phase 2 is underway which involves re-equipping and developing the mine below Level 5, allowing access to higher grade ore by the second quarter next year.
In addition, at the same mine — a diamond drilling campaign has commenced, in bid to probe deeper levels and improve planning accuracy.
PHL said the Thickener project at Eureka Mine is progressing and scheduled for completion by December 31 this year.
It is hoped that this project will result in an improvement in plant recovery and cost efficiencies in the Eureka Mine processing plant as from 2025.
The mining industry is one of Zimbabwe’s major economic mainstays contributing over 75 percent of the national export earnings with gold being the largest single export followed by platinum and diamond.
Despite a dip in global commodity prices, Mines and Mining Development Minister Winston Chitando is on record saying Zimbabwe’s mining sector has remained resilient to the global shocks.
The resilience, he said, is spurred by mining companies’ optimisation and expansion programmes.
Bongani Ndlovu