- Padenga Holdings Limited’s profit after tax tripled to US$26.4m in H1 2025, up from US$9.2m in H1 2024
- Performance driven by record gold prices averaging US$3,106/oz, up 41% from US$2,198/oz last year
- Global gold price surge supported by geopolitical tensions, inflation, currency volatility, U.S. policy uncertainty, and strong central bank demand
Harare - Padenga Holdings Limited, Zimbabwe’s largest listed gold producer, has more than tripled its profit after tax (PAT) for the half year to 30 June 2025, closing at US$26.4 million compared to US$9.2 million in the prior period according to the latest financial result.
The surge was underpinned by record bullion prices averaging US$3,106 per ounce, up 41% from US$2,198 in the same period last year, and a strong operational performance by the group’s mining arm, Dallaglio.
Revenue for the half-year climbed 38% to US$130.7 million, with Dallaglio contributing a commanding 94% of group turnover, further consolidating Padenga’s evolution from a diversified agribusiness into a mining-focused enterprise.
The division’s production of 1,292kg of gold represented a 7% increase from the previous year, achieved through higher mill feed grades, stronger recoveries, and operational efficiencies at both Eureka and Pickstone mines.
The stronger gold price environment reflected global macroeconomic tailwinds. Investors have flocked to gold as a hedge against persistent geopolitical tensions, inflationary pressures, and volatility in major currency markets, particularly following uncertainty in U.S. monetary policy and weaker global growth forecasts.
On the other, hand Fidelity Printers and Refineries have been paying over US$100 per gram with timely payments for the first time incentivising producers to deliver more.
Central bank demand has also remained elevated, with several emerging markets diversifying reserves into bullion. Together, these dynamics have driven the metal to historic highs, creating a windfall for well-positioned producers such as Padenga.
This price boom translated into a sharp lift in profitability metrics. The group recorded a profit before tax of US$41.3 million, up 204% year-on-year.
Cash generation was equally robust, with US$39.9 million realised from operating activities against US$19 million in the comparative period, supporting both debt reduction and continued reinvestment in growth projects.
Cash generated from operations trebled to US$38.1 million, cementing the miner’s role as the growth engine of the group.
Expansion works remain on track, with Phase 3 of Pickstone’s underground project progressing toward commissioning of the new hoisting infrastructure by December 2025.
Parallel investments include a 4.9MW solar plant at Pickstone and a 5MW solar facility at Eureka, both scheduled for completion within the next year, alongside circuit upgrades to improve recoveries.
The agribusiness division, once Padenga’s flagship crocodile operation, continued its restructuring trajectory. While continuing operations swung to a modest US$1.1 million profit from a loss last year, discontinued operations recorded a US$6 million loss following biological asset write-downs and retrenchment costs tied to the closure of the Ume farm.
The segment now plays a secondary role as Padenga consolidates around mining as its principal growth driver.
Looking ahead, the company expects steady gold production in 2025, with growth forecast in 2026 once new projects and upgrades come online.
Preliminary drilling results at Pickstone suggest a 30% increase in contained ounces, pending external review, while studies at Eureka could extend pit life through steeper slope designs.
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