Padenga Holdings’ Third-Quarter Update: Tragedy and Strong Operational Performance
Padenga Holdings Limited, a prominent Zimbabwean company listed on the Victoria Falls Stock Exchange, has reported a mixed performance for the third quarter of 2024, marked by both a tragic fatality at its Pickstone Peerless Mine and strong operational results across its business segments.
The mining operations, which focus on gold extraction, suffered a setback on September 29, 2024, when an employee tragically died due to inhalation of noxious gas in the mine’s underground section. This incident ended the mine’s impressive record of 740,085 fatality-free shifts, a significant safety milestone. In response, the company’s safety protocols have been updated, with stringent adherence to these measures being enforced to prevent further incidents.
Despite the tragedy, Padenga’s mining division showed resilience. The company’s Dallaglio gold sales surged by 22%, reaching 2,025 kilograms. This increase was attributed to higher mill feed grades and recoveries, with average grades improving by 6% to 1.51 grams per tonne. The installation of a new mill at Pickstone Peerless Mine contributed to an uptick in milled tonnage, boosting overall production.
In its agribusiness segment, which focuses on crocodile farming and skin harvesting, Padenga reported a 3% increase in skin harvest volumes, which reached 24,813. However, skin sales were significantly down, dropping 30% year-on-year to 21,418 due to reduced demand in the market. The company noted that the quality of skins remained consistent with set targets, and premium skin sales were in line with expectations.
Looking ahead, Padenga remains optimistic about the future. The company is confident that favorable gold prices will persist into 2025, providing a strong foundation for continued growth. Padenga is also focused on advancing its underground development at Pickstone Peerless Mine ahead of schedule and maintaining strong production at its Eureka Mine.
To optimize its operations, Padenga is working on reducing borrowings and interest costs while also boosting export proceeds. Management is committed to improving ore grades, lowering operating costs, and enhancing recoveries to ensure the company remains competitive in the global market.
Despite the setback, Padenga’s ability to maintain strong performance in both its mining and agribusiness sectors highlights the resilience and adaptability of the company as it navigates the challenges ahead.
