Africa-Press – Zimbabwe. Padenga Holdings Limited has projected a “robust financial performance”, supported by consistent production at its Eureka Mine and a favourable gold price outlook.
The gold price has surged by about 54% to US$4 041,90 per ounce since the end of December 2024.
Padenga posted a 187% profit surge to US$26,29 million in its half-year ended June 30, 2025, driven by a 38% revenue jump on stronger gold prices.
With the current gold rally, which could go even higher by year-end, Padenga is expected to make significant returns.
“Gold produced in the nine months to 30 September 2025, at 1 909kgs, was 1 % higher than in the prior comparative period (1 882kgs). This marginal increase was largely driven by an improvement in the average mill feed grades at the mines,” Padenga said in a trading update for its third quarter ended September 30, 2025.
“Gold spot price strengthened significantly, averaging US$3 239 per ounce, year-to-date, compared to US$2 303 last year, which supported strong revenue growth.”
Padenga said this bullish trend was sustained by increased investor demand for gold in the face of heightened global economic uncertainty as well as by strong central bank buying.
“A robust financial performance through to year-end is expected from Dallaglio [Dallaglio Investments Private Limited], supported by consistent production at Eureka Mine and a favourable gold price outlook,” Padenga said.
The group noted that its financial performance continued to benefit from rising gold prices.
Padenga operates its mining operations through its Dallaglio subsidiary, which runs the Eureka and Pickstone Peerless mines.
“Following a geotechnical drilling campaign in 2023, blasting trials and update of economic inputs into the Eureka Mine block model, management is currently finalising reviews of a life-of-mine extension of the unit’s open pit to 2039 (previously 2030). This will safeguard consistent performance and long-term value for stakeholders,” Padenga said.
“The Gravity Circuit Upgrade project at Eureka Mine has entered the execution phase, with completion targeted for the first half of 2026. Once finalised, the initiative will drive overall processing plant recovery and deliver improved cost efficiencies in the carbon-in-leach section of the plant.”
At Pickstone Peerless Mine, the group said the third phase of the underground project would be commissioned this quarter, which would progressively restore ore hoisting to optimal levels.
“The strategic focus remains on diamond drilling and mine development to expand reserves, sustain consistent ore hoisting and guide future capital investment decisions,” Padenga said.
“A review of the business model for Pickstone Peerless mine is currently underway. Margins at the mine remain impacted by high fixed costs and suboptimal plant utilisation. The ongoing review is focused on addressing these challenges over the short to medium term.”
The group’s mining business contributed 94,4% to the total revenue of US$130,68 million during its half year. The balance was generated by its agribusiness arm.
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