Timothy
Business Writer
Padenga Holdings Limited says it is confident of meeting its skin harvest and quality deliverables from Zimbabwe operations.
The group successfully trialed amended operational procedures that are, according to chairman Thembinkosi Sibanda, contributing to significantly improved quality in young stock over achieved in prior years.
Sibanda said these trials should be replicated across board during financial year 2022.
Traditionally a crocodile breeder, skin and meat producer, Padenga also recently diversified into gold mining through a successful acquisition of a 50,01 percent shareholding in Dallaglio Investments (Private) Limited.
“This is consistent with premium market expectations of continued improvement in skin quality in pursuit of totally blemish free skins.
“These trial initiatives will be applied across the board in 2022,” he said in an operational update for the third quarter to September 30, 2021.
While the alligator skin market has remained depressed, Sibanda said positive skin quality improvements were achieved in the harvest offtakes undertaken at the end of the third quarter.
Management, however, made a strategic decision to scale back on operations at the alligator business until the trading environment improved.
Due to the Covid 19 pandemic, there has not been any meat exports although the business anticipated to resume crocodile meat exports to Europe by end of the last quarter of the financial year 2021.
During the third quarter period, the Zimbabwe operation, the Nile crocodile operation recorded a 45 percent increase in skin sales volumes compared to prior period. According to the group, three sales gradings were done in March and September with first grade ratio being consistent with budget.
At Tallow Creek Ranch – the United States operations, skin volumes went down 27 percent compared to same period in the prior year. There were a significant number of carryovers skins from prior year that were sold during FY21.
Market watchers, however, see significant recovery in the diversified firm with full year revenue on an upward trajectory in FY21 and going forward backed by mining operations as well as the higher foreign currency retention from its Victoria Falls Exchange (VFEX) listing.
Following an export incentive introduced by Government in May last year, Padenga board made a decision to delist from the Zimbabwe Stock Exchange (ZSE) and list on VFEX becoming the second listing on the US$ denominated VFEX on the 9th of July last year.
The gold operations at Eureka Mine and export incentives are expected to boost the group’s revenue performance for the fully year and going ahead.
During the nine months to September 30, 2021, Dallaglio’s gold sales volumes fell 8 percent to 501 kilograms mainly due to a weak first quarter performance at Pickstone Peerless mine due to excessive rainfall.
But the newly refurbished Eureka mine started producing gold at the end of July and sales commenced in September. The mine contributed 92 percent of gold output and was expected to ramp up to over 100 kilograms of gold per month by year end.
Bongani Ndlovu