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Business Reporter
Padenga Holdings, which is listed on the Victoria Falls Stock Exchange (VFEX), says the capital project works for underground mine operations at Pickstone Mine are on course and expected to be complete by the first quarter 2023.
The group recently said it would spend in excess of US$21 million on expansion of operations with the bulk of the funding going towards rusticating underground mining at Pickstone mine.
“In the mining operation, capital project work at Pickstone Mine is currently underway to resuscitate underground mine operations as the open pit mine approaches its end of life.
“The project is currently on course and is expected to be completed at the end of first quarter 2023,” Thembinkosi Sibanda, the group’s chairman said in a statement accompanying financial results for the half year to June 2022.
As part of diversifying from its traditional crocodile farming business, Padenga acquired a 50,1 percent stake into Dallaglio Investments (Pvt)Ltd, a company that owns gold mining enterprises whose assets comprise Pickstone Peerless Mine, Eureka Gold Mine, Giant Gold Mining Claims and Blue Rock Claims.
During the half year period, Dallagio posted a strong performance, recording profit before tax of US$12,7 million compared to a loss of US$9,2 million in the prior comparable period.
Volumes achieved of 933kgs compared to 270 kgs in the first half of 2021 were only 4 percent lower than volumes for the full year in 2021.
Mr Sibanda said this was attributable to the increased contribution from Eureka mine, which had not yet been fully operational during the same period last year coupled with improved gold prices.
“Consequently, cash generated from operations amounted to US$4,5 million compared to US$0,8 million in 2021 mainly due to the increased gold sales,” he said.
The group’s revenue of US$56,9 million was 181 percent up from US$20 million recorded in the comparable period in prior year.
The mining business contributed 91 percent of the total revenue amounting to US$51,7 million from the sale of 933 kgs of gold.
The Zimbabwean operation contributed 9 percent of revenue at US$5,1 million.
Padenga’s profit before tax from continuing operations amounted to US$15,7 million and Mr Sibanda said this was a remarkable turnaround from the loss of US$12 million recorded in the prior year same period.
“The half year return to profitability was largely driven by incremental gold volumes of 641,4kg from Eureka mine which was not yet productive during the same period in prior year, favourable gold and the non-repeat of the significant fair value write down on skins experienced in prior year,” he said.
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