daniel chigunwe
Oliver Kazunga
Business Writer
Listed diversified group, Padenga Holdings, recorded a 34 percent dip in Nile crocodile skin harvest volumes in the quarter ended March 31, 2024 compared to the same period last year.
In a trading update for the period under review, the group which also has interests in gold mining sector, indicated that it has harvested 9 248 crocodile skins against 14 096 in the corresponding period last year.
“The first quarter of 2023 benefited from the harvest of some 10 000 skins carried over from December 2022. Skin sales in the first quarter at 7 480 skins were 213 percent above 2 392 skins sold for the comparative period.
“Sales in the quarter ensured timely completion of the 2023/24 skin contract with the main customer and included an early contribution towards the 2024/25 skin contract ending 28 February 2025.
“The significant improvement in skin quality realised at the end of 2023 continued into the first quarter of 2024,” said Padenga.
Following an improvement in skin quality at optimal production levels in financial year 2023, the entity hopes that the business is on course to fulfil its 2024/25 skin contract volumes to its primary customer within financial year 2024 ahead of the contract end date.
Trading terms for the succeeding season are set to be negotiated in the third and fourth quarter, thus ensuring viability of the enterprise in the short to medium term.
The exotic skins luxury market continues to withstand the turbulent global economic environment and thus Padenga said it maintains its position as a significant player in the crocodile value chain, thereby also expanding its customer base.
“Meat exports are set to resume during the latter part of the current financial year,” said Padenga, adding that focus continues on reducing borrowings and related interest costs to sustainable levels and to improve profitability, thus generating shareholder value growth.
The group, this year began the annual rehabilitation of crocodile pens is set for completion in the current quarter to improve skin quality.
Padenga said the commissioning of the Phase 3 solar array at the northern farms to bring the solar plant operating capacity to a total of 1,2MW was also scheduled for completion this quarter.
Capital expenditure during the 2024 financial year will be headlined by the construction of the waste treatment plant which has begun and is set to be completed by the end of the year.
On its mining operations, Padenga said gold sales in the three-months period to March 31, 2024, gold sales surpassed the prior year comparative period by 39 percent to 751,6 kilogrammes against 514,4kg.
“This was achieved on the back of an increase in tonnes milled and mill feed grade. The tonnes milled increased by 7 percent to 457,440 tonnes, up from 427,702 tonnes recorded for the same period last year.
“The increase was due to optimised plant throughput at Eureka Mine, as well as the addition of a new mill at Pickstone Peerless Mine.
“Mill feed grade also registered a two percent increase (1,47 grammes per tonne versus 1,44g/tonne).”
The initial phase of the Pickstone Peerless Mine underground project was officially commissioned by President Mnangagwa in April this year.
Bongani Ndlovu