With miner and crocodile farmer Padenga Holdings Limited (Padenga) planning to produce between 90 000 and 95 000 ounces of gold this year, the group has increased its capex by US$18 million.
Back in March, the group had budgeted a total of US$18 million.
American banker J.P. Morgan recently lowered its 2026 average gold price forecast to US$5.708, citing softer near-term investor demand, but this is still higher than last year.
The bank expects prices to recover toward US$6 000 by year-end, with demand re-accelerating in the second half of 2026 on continued central bank reserve diversification and improving exchange-traded fund flows.
“The group is targeting total attributable gold production of 90,000 – 95,000oz. Eureka mine maintains robust production levels,” Padenga said in its 2025 annual report.
“With investment to date of US$18 million budgeted for 2026, the underground mine at Pickstone will increase volumes in 2026.”
At these prices, this translates to potential revenue of between US$498.09 million based on projected production of 90 000 to 95 000 ounces and J.P. Morgan’s average 2026 gold price forecast of US$5,243 per ounce.
“The board has performed a thorough assessment and confirms that the group has adequate resources to continue in business and into the foreseeable future,” Padenga said.
- State withdraws charges against crocodile farmers
- Padenga halts croc meat exports as EU tightens screws
- Eureka boosts Padenga
- ‘Zim inflation to hit 400% by Q1 2023’
Keep Reading
“This is supported by both current performance and financial forecasts as well as regular upgrade of property, plant and equipment. Accordingly, the consolidated financial statements have been prepared on the basis that the group is a going concern.”
Last year, the group’s mining subsidiary, Dallaglio Investments Private Limited (Dallaglio), produced a total of 78 030 ounces from the subsidiary’s Eureka and Pickstone Peerless mines. Consequently, Dallaglio’s revenue rose 30% to US$251.06 million, as global gold prices rose 61%.
As a result of this performance, the group generated an economic value of US$193.4 million.
The group nearly doubled its tax contribution during the year to US$15.83 million in the prior period.
“All tax obligations—including corporate income tax, value added tax (VAT), payroll taxes, and employee-related withholdings—are calculated accurately and settled in full within prescribed deadlines,” Padenga said. As previously reported, Dallaglio’s mining revenue contribution to the group’s overall earnings rose 7.64 percentage points to 94%.
The mining subsidiary’s performance led Dallaglio to generate US$16.37 million in cash and cash equivalents, comprising cash and short-term bank deposits with an original maturity of three months or less. Investors are closely watching Padenga, which this year became Zimbabwe’s second most valuable firm, with a valuation of nearly US$800 million as of last Thursday.
“The flat performance of international gold prices during April 2026 triggered notable selling pressure on Padenga Holdings, one of the VFEX’s (Victoria Falls Stock Exchange) most heavily weighted counters,” FBC Securities said.
“With gold closing the month at US$5 405 in January, investors who had accumulated Padenga shares during the gold rally shifted to profit-taking. This selling activity added substantially to the month’s turnover, as buyers and sellers transacted around the changing outlook for gold.”
