• Full Acquisition of Dallaglio: Padenga has completed the acquisition of Dallaglio Investments, its gold mining subsidiary, through a 253-million-share swap
  • Ambitious Production Targets: The company aims to produce 80,000 ounces of gold in FY2024, which would establish it as Zimbabwe’s largest gold producer
  • Strategic Shift and Market Dynamics: Transition to gold mining is bolstered by favorable market conditions, including record gold prices and a growing investor..

Harare- Padenga Holdings Ltd. has solidified its transformation from crocodile skin producer to mining contender by acquiring full ownership of Dallaglio Investments, its gold mining subsidiary, through a 253-million-share swap on the Victoria Falls Stock Exchange (VFEX) last week.

                       

The move capitalizes on gold’s record-breaking rally, with prices surging 18% in 2024 to over $2,450 per ounce, as the company pivots decisively from luxury agriculture to harness booming mineral demand. 

Gold prices hit new highs in 2025 and during the month of February to date, prices have been supported by a weaker US dollar, extending its y-t-d gains to 9%. Gold continued its uptrend from January 2025 to February, hitting multiple new highs before pulling back to end the month at US$2,835/oz  up 0.8% m/m. This performance was echoed across major currencies, all of which also registered new record highs.

In FY2024, the company has targeted 80,000 ounces of gold production and if achieved, this output would cement its position as Zimbabwe’s largest gold producer, marking a dramatic evolution from its origins in niche agriculture to a heavyweight in the mining sector.

For Padenga, this rally translates to enhanced revenue potential and improved margins, positioning its gold operations as the primary engine of profitability. The company’s shift into mining now appears prescient, offering insulation from the volatility that once plagued its crocodile skin business amid fluctuating luxury demand and ethical scrutiny. 

Padenga’s transformation began in 2019 with its initial 50.1% stake in Dallaglio, a gold mining entity. Over five years, strategic investments in Dallaglio’s infrastructure and operational capacity boosted gold output from 12,000 ounces annually to over 60,000 ounces by 2023.

The full acquisition of Dallaglio in late 2023, funded through a 253 million share issuance on the VFEX, eliminated joint-venture complexities and unified control over mining assets.

This consolidation has enabled Padenga to streamline decision-making, optimize resource allocation, and scale production toward its 80,000-ounce target. 

The company’s expertise in managing large-scale, regulated operations honed through crocodile farming has proven transferable to mining.

Padenga’s focus on efficiency, compliance, and sustainability in its prior business has facilitated a smoother transition into gold extraction.

Padenga’s FY2024 target hinges on maximizing the synergies between its upgraded mining assets and favourable market dynamics. At current gold prices, each additional ounce mined contributes disproportionately to revenue, given the metal’s 30% price surge since 2023 and 18% surge in 2024 alone.

Assuming Padenga achieves a gold production output of 80,000 ounces, with the 2024 average gold price benchmarked at $2386.2 per ounce, the company's revenue projections are substantial. Specifically, if 90% of its gold output is at least sold as polished gold at the prevailing spot price, Padenga can expect to generate revenues of approximately $171.8 million. Conversely, if the company opts to sell its entire gold production as pure gold at the spot price, revenue accruals could potentially surge to $190.89 million.

This reflects the imperative for policymakers to reassess the tax regime governing the mining sector with a view to incentivising investment in value-added activities.

Also, reconsidering Zimbabwe's participation in the London Bullion Market would likely enhance the country's gold marketing framework, ultimately benefiting miners like Padenga.

The company’s transition has also reshaped its risk profile. While crocodile skin revenues were tied to luxury fashion cycles and export regulations, gold’s universal demand offers more stability.

Padenga’s pivot has attracted a new cohort of investors, including commodity-focused funds, drawn to its exposure to a globally traded asset. This broadening investor base has improved liquidity for its VFEX-listed shares, which have gained 22% year-to-date as gold prices climbed. 

However, gold mining is capital-intensive, requiring continuous investment in exploration, equipment, and labour. The company must also navigate Zimbabwe’s regulatory landscape, including stringent environmental standards and foreign currency retention policies.

Also, infrastructure constraints such as unreliable power supply and limited refining capacity could bottleneck production if unaddressed. 

Padenga’s ascent in gold mining aligns with Zimbabwe’s national economic priorities. The government has identified gold as a key driver of export earnings, aiming to boost annual production to 100 tonnes by 2030. Padenga’s projected 80,000 ounces (2.27 tonnes) for 2024 and over 80k oz going forward contributes meaningfully to this goal, while its operations generate employment and stimulate ancillary industries like equipment supply and transportation.

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