Gold outgrows farming as Padenga main anchor

While the crocodile business remains a part of Padenga’s operations, its contribution to the group’s overall revenue has been declining (File Picture).

Business Reporter

Padenga Holdings Limited, a diversified group with interests in agriculture and mining, is undergoing a strategic transformation, with its mining operations emerging as the primary growth engine.

The company’s recently released financial results for the half-year ended 30June 2024 underscore this shift.

“Overall, the revenue composition highlights Padenga’s increasing reliance on its mining operations as the key revenue and growth driver,” according to a research report by Stockbroking firm FincentCapital, a member of the Zimbabwe Stock Exchange.

According to Fincent Capital (Fincent), a significant contributor to this transformation is Dallaglio, Padenga’s mining arm.

In the first half of 2024, the mining division accounted for a substantial 88 percent of total revenue, a marked increase from 66 percent in financial year 2021.

This surge highlights the growing importance of gold mining to Padenga’s overall business.

While the crocodile business remains a part of Padenga’s operations, its contribution to the group’s overall revenue has been declining.

“The crocodile business, despite being a smaller contributor, showed a modest 2percent growth in revenue compared to the same period in the prior year,” the FincentCapital report noted.

This growth was primarily driven by higher average prices realised per skin, which offset a significant decline in volumes.

A Bright outlook for mining

Looking ahead, Padenga’s mining operations are poised for continued growth.With gold prices expected to remain strong, the company is well-positioned to capitalise on favorable market conditions.

“With gold prices expected to reach$2 679,92/t oz by year-end and $2 775,81 in 12 months, Padenga is poised forcontinued growth,” the report stated.

Significant investments in mining projects, such as the revival of Eureka Mine and the development of an underground mine at Pickstone, further solidify Padenga’s commitment to its mining business. These investments are expected to drive future growth and enhance the company’s profitability. As Padenga continues to evolve, its strategic shift towards mining is evident. While the crocodile business remains a part of its operations, the mining division has emerged as the dominant force, shaping the company’s future trajectory.

Gold outgrows farming as Padenga main anchor

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