Padenga revenue growth up 68%
DIVERSIFIED concern Padenga Holdings Limited has recorded 68% revenue growth to US$128 million for the year ended 31 December 2022 due to the positive performance of the Dallaglio mining operations unit.
Commenting on the financial statements for the year, group chairperson Thembinkosi Sibanda said Dallaglio contributed 82% to the group’s revenue growth on the back of a production increase at Eureka Mine in Guruve.
The unit sold 1 961 kilogrammes of gold compared to the 976 kg registered in the prior year. This was 101% higher than volumes for full-year 2021, making Dallaglio one of the top three national gold producers.
“This was attributable to the increased contribution from Eureka Mine, which had not yet been fully operational during the same period last year coupled with improved gold prices,” said Sibanda.
Eureka Mine was commissioned in October 2021 and became operational in 2022, hence its notable contributions to the group revenue for the period under review.
Increase in revenue improved the group’s earnings before interest, tax depreciation and amortisation (Ebitda) to US$32 282 038 in the period under review, up from US$14 168 711 in the preceding year.
The group also registered before-tax profit of US$13 892 552 from a loss before tax of US$7 263 278 in full-year 2021. The group generated cash amounting to US$24 604 823 in full-year 2022 compared to US$15 502 776 recorded in the previous year.
“The increase in cash generated was mainly due to improved revenues and efficiencies,” added Sibanda. However, the Zimbabwean crocodile unit had a negative performance, contributing only 18% to the revenue in the period under review. This was due to the reduction in both unit volumes and revenue.
“Revenue or the Zimbabwean crocodile business reduced by 7% in comparison to the prior year, as a result of the 27% decrease in the skin volumes partially offset by an improvement in the average realisation per skin,” he said.
The unit harvested 34 117 skins in the period under review compared to 55 136 skins harvested in 2021, because of a shift in the harvest season providing additional time to allow for remedial actions implemented to impact skin quality.
Consequently, the unit sold 33 189 skins compared to 39 936 skins in full’-year 2021. In 2022, the group discontinued its United States-based alligator business unit through the sale of the operating assets of the unit to an offshore equity group.
“Consequent upon the continued oversupply in the alligator skins market coupled with the quality issues that took a number of years to resolve, the business unit accumulated losses over several years,” Sibanda said.
Going forward, the group said it was focused on operationalising the underground mine at Pickstone Peerless Mine, whose development is at an advanced stage.
The group spent US$13 498 837 on capital expenditure in 2022, with the refurbishment of the underground mine at Pickstone Peerless Mine in Chegutu being the major project. Phase one of the project was scheduled to be completed in August 2023.
“Completion of the project is expected in August 2023, after which commercial production will commence. This is poised to contribute significantly to the group’s revenue and profit,” the group anticipated.