- Total revenue was US$22,5 million
- Mining operations contributed 61% of total revenue
- Crocodile farming operations contributed 39%
Leading crocodile skins and meat supplier and new miner, Padenga Holdings Limited has recorded a massive 295% boost in revenue for the half year ended 30 June 2020 owing to an improved performance from their new mining ventures.
The company operates three crocodile breeding and production farms in Zimbabwe; Kariba Crocodile Farm, Ume Crocodile Farm and Nyanya Crocodile Farm.
Furthermore, it owns a Nile Crocodile breeding farm in Texas, USA producing crocodile skin and meat products for consumption by the local market and for export to European and Asian markets.
Padenga ventured into mining in the third quarter of 2019 following the acquisition of a 50.1% shareholding in Dallaglio Investments which owns Pickstone Peerless Mine in Chegutu and is now reaping rewards from the venture as highlighted through the top line performance.
Total revenue for the period under review came in at US$22,5 million up by almost US$17 million from the US$5,7 million posted in the comparative period in 2019.
The mining business contributed 61% of the total revenue following a contribution of US$13,8 million from the group’s Pickstone Peerless Mine which produced 344kgs of gold, representing a 43% increase on the volumes recorded in the comparative period.
Commenting on the excellent revenue performance from the mining business, group board chairman, Thembinkosi Sibanda said “This improvement was driven by both improved production volumes and an increase in gold price.”
The crocodile operations in Zimbabwe contributed a total of 29% to revenue, US$6,4 million in monetary terms compared to US$3,6 million in the first half year of 2019 whilst the Texas operations contributed 10% of total revenue, amounting to US$2,3 million against US$2,1 in the comparative period.
From the Nile Crocodile operations revenue increased from US$3,6 million in HY1 2019 to US$6,4 million in the period under review, however profitability was affected by an adjustment in fair valuation, seeing profit before tax coming in at US$4,6 million compared to US$8,9 million in 2019.
Meanwhile the alligator operations recorded a loss of US$2,3 million compared to a profit before tax of US$601 thousand recorded in the comparative period.
“This loss was attributable to the sale of low-grade skins at reduced prices to clear stock in a depressed market,” the chairman said.
“The market for the both small sized and low-grade alligator skins remains very challenging due to an oversupply of skins in these categories,” he added.
The group is currently involved in the rehabilitation of mining and processing work at Eureka mine which is expected to commence operations in July 2021.
Equity Axis News.