• Padenga produced 751 kilograms of gold 39% up in Q12024  
• This production volume surpassed Caledonia's output of 495.9 kgs or 17,476 ounces
• Padenga's gold production in Q1 nearly matched RioZim's total production for the entire fiscal year 2023

Harare- As gold continues to consolidate its significance not only due to its safe haven status amidst geo-economic global fragmentation but also its heightened relevance as Zimbabwe embraces ZiG, a gold-backed currency, Padenga Holdings Limited, as the second-largest gold producer, has further solidified its production status by emerging as the foremost gold producer among formal listed companies on quarter-on-quarter basis during the Q1FY2024.

In the initial quarter of the entire year 2024, Padenga achieved gold production of 751 kgs, exhibiting a growth of 39% compared to the previous year's sales of 541.4 kgs.

 Padenga's gold production of 751 kgs not only exceeded Caledonia's output by a substantial margin of 52% (which equated to 495.9 kgs or 17,476 ounces), but it also came close to matching RioZim's total production of 940 kgs for the entire 2023 year.

With a consistent track record of setting new production records quarter after quarter and year after year, Padenga has now set an ambitious target of producing 100,000 ounces of gold annually. This target corresponds to over 2,500 kilograms of gold.

To kickstart this goal, Padenga aims to achieve a production range of 80,000 to 85,000 ounces this year compared to Caledonia’s projection of between 74,000 and 78,000 ounces during the same period.

This will position Padenga as the biggest producer of gold in the country.

Commenting on the latest production, the group said, “This was achieved on the back of an increase in tonnes milled and mill feed grade.”

The tonnes milled increased by 7% to 457 440 metric tonnes from 427 702 metric tonnes recorded for the same period last year courtesy of increased throughput  at Eureka Mine as well as the addition of a new millat Pickstone Peerless Mine.

Mill feed grade also registered a 2% increase 1.47g/mt vs 1.44g/mt.

The group commissioned the initial phase of Pickstone Peerless on the 10^th of April 2024 while ore hoisting from PUG continued parallel to Phase 2 of the underground development.

Padenga made a remarkable revival in 2021 by reactivating the Eureka mine, which had been dormant for nearly two decades. In addition to this significant achievement, the company invested a substantial amount of US$46 million in developing an underground mine at Chegutu's Peerless Pickstone, and an additional US$14 million was allocated for plant upgrades.

For the current year, Padenga projects to allocate approximately US$28 million for further development, with a specific focus on advancing the two mines.

The transition of Pickstone from an open-pit mine to underground operations is receiving significant investment to support the company's new gold production target.

Although these endeavors have resulted in a debt of up to US$70 million, they have proven to be worthwhile, solidifying Padenga's position as a leading gold producer.

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