HARARE — Padenga Holdings Limited increased group revenue by 47% in the nine months to September 30, 2026, benefiting from higher international gold prices and stronger production at its mining operations, while restructuring helped reduce costs in its crocodile-skin business.
Gold sales rose 14% to 2,184 kilogrammes, equivalent to 70,220 ounces, from 1,909kg in the comparable period last year. The increase reflected higher plant throughput and improved mill-feed grades at Eureka Mine, alongside operational improvements at Pickstone Peerless Mine.
The performance was supported by a substantial increase in international bullion prices. Gold averaged US$4,503 an ounce during the nine-month period, 39% above the prior-year average of US$3,239.
Prices remained volatile during the third quarter, averaging US$4,664 an ounce in August before easing to US$4,176 at the end of September following an increase in US Federal Reserve interest rates.
Padenga said stronger profitability and cash generation enabled the group to finance its capital expenditure programme internally. It remained in a net cash position after paying an interim dividend of US$25.67 million in October 2026.
Mining operations drive growth
Eureka Mine recorded quarterly plant throughput of 376,500 tonnes, its highest quarterly level, as the company increased waste stripping and deployed additional haul trucks to expose further sections of the open pit.
Exploration drilling covering 12,232 metres had returned encouraging preliminary results, supporting the assessment of potential underground mining beneath the existing open pit.
At Pickstone Peerless Mine, third-quarter hoisting was constrained by rehabilitation work on the Southwell Shaft and upgrades to the Burnett Shaft winder. The company said completion of the works had improved hoisting capacity going into the fourth quarter.
Exploration drilling of 33,476 metres at Pickstone supported resource expansion, including the Peerless Underground project. The mine’s 4.9MW solar plant now supplies approximately 20% of site electricity requirements.
Padenga expects full-year 2026 gold production to exceed the 2025 level, supported by Eureka Mine and improved hoisting capacity at Pickstone Peerless.
Further investment is planned at both operations. Eureka’s Gravity Circuit Upgrade was completed in October, while the Cyclone Cluster Upgrade was scheduled for commissioning in November. At Pickstone, Phase 3 of the underground project was completed in October, improving shaft reliability and hoisting capacity. Phase 4, which will establish a new loading station at 12.5 Level, is expected to be commissioned in the second half of 2027.
Crocodile business faces softer demand
The group’s agribusiness operations delivered a mixed performance. Crocodile-skin sales increased 62% to 30,088 from 18,597 in the corresponding period, driven by sales of lower-value skins following the culling of livestock at Ume Crocodile Farm in 2025.
The higher sales volume came at the expense of average prices, as a smaller proportion of skins were sold to premium customers. Padenga ended the period with 19,448 skins in stock.
The company said luxury exotic-skin markets remained subdued amid global uncertainty, excess supply of alligator skins and a shift by tanneries towards smaller, more frequent orders.
However, operating costs in the agribusiness division fell 23% following restructuring. Padenga plans to operate strictly to a 25,000-skin model in 2027, with the reduced supply intended to support demand and prices as market conditions recover.
Investment and cost pressures remain key risks
Padenga identified gold-price volatility, rising input costs and electricity-supply reliability as key risks to its mining operations. It said investment in cost discipline, production growth and renewable energy would remain central to managing these pressures.
The Zimbabwe Mail business desk’s assessment is that Padenga’s latest performance illustrates the earnings potential of its mining portfolio during a period of elevated international gold prices. The 47% revenue increase, however, should be viewed alongside the 39% rise in average gold prices: sustaining growth will increasingly depend on operational efficiency, production expansion and disciplined capital allocation if bullion prices moderate.
The group’s mining projects provide opportunities to increase output and extend the life of existing assets, while its decision to reduce crocodile-skin production towards a defined operating model reflects an effort to protect margins in a difficult international luxury market.
Padenga’s results underline the growing importance of mining to the group’s financial performance, while demonstrating the need to manage its exposure to commodity cycles, energy costs and changing demand in its agribusiness operations.
