Online Reporter
Tapiwanashe Mangwiro
Gold miner and crocodile farmer Padenga Holdings reported a sharp rise in first-quarter output, positioning bullion as the dominant earnings driver for the group amid soaring global gold prices.
This comes as investors continue to pile funds into haven assets amid rising global geopolitical uncertainty, massive central bank purchases, sustained, persistent sovereign debt and systemic inflation fears.
In a trading update released on Wednesday, company secretary Andrew Lorimer said gold production from the group’s mining arm, Dallaglio, rose 13 percent to 696.7kg in the quarter ended March 31, up from 618.9kg in the comparable period last year.
“The increase was primarily driven by higher average mill feed grades across both Eureka and Pickstone operations,” Mr Lorimer said.
The production growth comes as international bullion prices remain near record highs, buoyed by geopolitical tensions, central bank buying and investor demand for safe-haven assets.
Padenga said the average gold spot price during the quarter surged to US$4,875 per ounce, compared with US$2 887 in the same period last year.
For Zimbabwe’s mining sector, where producers are benefiting from a strong gold rally despite higher royalties and policy tightening, the performance reinforces the growing importance of the yellow metal in corporate earnings and export generation.
Padenga noted that the operating environment during the quarter remained stable, supported by tight monetary policy and improved fiscal discipline.
However, the company also highlighted the impact of changes to Zimbabwe’s royalty framework after authorities introduced a sliding scale system under which a 10 percent royalty applies to gold sold above US$5 000 per ounce, replacing the previous flat 5 percent structure.
Despite the higher royalty burden, Padenga projected a strong financial performance for the rest of the year.
