- Padenga Holdings Limited allocates US$30 million for 2025 to enhance gold production and streamline operation
- Most funds (US$29 million) directed to Dallaglio Investments, its mining subsidiary, which operates the Eureka and Pickstone mines
- US$1.5 million allocated for upgrading facilities in Padenga’s crocodile business, enhancing supply of high-value skins
Harare-Padenga Holdings Limited, Zimbabwe’s second largest gold producer has allocated a US$30 million investment plan for 2025 to ramp up gold production and streamline operations according to the latest circular by the group.
This capital injection, primarily aimed at its mining subsidiary, Dallaglio Investments, signals Padenga’s determination to solidify its position as a leading gold producer while enhancing its crocodile business, a unique cornerstone of its diverse portfolio.
The company’s mining arm, Dallaglio Investments, which operates the Eureka and Pickstone mines, will receive the lion’s share of the funds US$29 million.
The remaining US$1.5 million will go toward upgrading facilities in Padenga’s crocodile business, which supplies high-value skins to the global luxury market.
This investment comes on the heels of a stellar 2024, when Padenga’s gold output surged by 17% to 2,638 kilograms, overtaking Caledonia Mining Corporation to become Zimbabwe’s second largest gold producer.
The 2025 plan aims to push production even higher, targeting an ambitious 85,000 to 90,000 ounces of gold.
Padenga’s journey to this point has been marked by consistent investment and innovation.
Over the past five years, the company has poured US$107 million into modernising its mines, upgrading infrastructure, and boosting efficiency.
These efforts have paid off, with improvements like the pre-leach thickener at Eureka Mine enhancing gold recovery rates and the ongoing transition at Pickstone Mine from open-pit to underground mining unlocking access to richer, deeper ore deposits.
The 2025 investment builds on this foundation, with a major focus on constructing an underground shaft at Pickstone to sustain long-term production.
Also, the funds will support performance upgrades at Eureka, ensuring the mine operates at peak capacity.
Exploration is another key pillar of Padenga’s strategy. The company plans to drill extensively 19,335 meters at Pickstone and 15,105 meters at Eureka to identify new gold deposits and extend the lifespan of both mines.
By investing in exploration, the company aims to secure a steady supply of resources to meet its ambitious production goals while mitigating the risks of depleting existing reserves.
Zimbabwe’s gold industry provides a fertile backdrop for Padenga’s plans ,in 2024 the country achieved a record breaking 36.48 tonnes of gold production, surpassing the government’s target of 35 tonnes.
For 2025 Zimbabwe Chamber of Mines is forecasting a 7% increase driven by strong global demand and rising gold prices.
As a major player, Padenga is well positioned to capitalize on this momentum. Its modernized mines and strategic investments give it a competitive edge in a sector that is increasingly vital to Zimbabwe’s economy.
However, challenges remain. Rising energy costs, now averaging USc14.21 per kilowatt-hour, pose a threat to profitability, as mining is an energy-intensive process.
The company have to explore ways to reduce its energy footprint, potentially through more efficient technologies or alternative power sources.
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