Online Reporter
Business Reporter
KUVIMBA Mining House (KMH) has set aside US$54 million capital expenditure under its gold cluster for the financial year to March 2026 as the group forges ahead with maintaining operational efficiency and production.
The group’s gold cluster is composed of Freda Rebecca Gold Mine, Jena Mines and Shamva Gold Mine.
In the financial year ended March 2025, KMH’s gold cluster set aside capital expenditure of US$18 million largely generated from within its operations.
In an interview after a media briefing on Wednesday, KMH head of the gold cluster Mr Patrick Maseva-Shayawabaya said: “For the year to March 2026, we have budgeted a total Capex of US$54 million and a bit of that is to complete the tailings storage facility (TSF) project.
“We are also going to do a new power line from Trojan to Freda to replace the existing power line, which is unreliable.
“We also have got a number of projects in our plant to replace plant and equipment that are old and unreliable.
“And also to increase the tank capacity in both the plant here at Freda and at Jena. That increase in tankage improves what we call residence time, which is the time that it takes to expose the ore to chemicals so that you improve your recovery.”
In the current financial year, he said, the KMH gold cluster does not expect a major change in terms of production as there is no expansion project and volume increase expected.
“But if we do have a higher grade and if we do have a higher recovery in the plant, it may give us an uptick in production.
“Generally, we expect that production for FY26 will be along the same lines as what we achieved in FY25,” said Mr Maseva-Shayawabaya.
Presenting the gold cluster results for the financial year ended March 2025, he indicated that his organisation posted a stellar performance, producing 3 605 kilogrammes of the yellow metal and generating nearly US$300 million.
This was on the back of successful implementation of hybrid operating model during the period gold prices were firming.
“As the KMH gold cluster, we consider this an excellent performance… we are pleased with the results given the numerous challenges faced.
“This achievement reflects the collective effort of our management teams, workers, and business partners particularly under the hybrid model, where much of the work is carried out by contractors.
Compounding this success, the gold price followed an upward trajectory throughout the financial year, allowing us to maximise revenue.
“Consequently, the cluster’s revenue reached just under US$300 million, up from US$205 million the previous year,” he said.
In the period to March 2025, the group achieved a gross margin of 52 percent compared to 33 percent in the prior year.
Earnings before interest, tax, depreciation, and amortisation stood at US$104 million against US$37 million previously while profit before tax also rose to US$69 million from US$1,4 million.
