Victoria Falls Stock Exchange (VFEX) listed conglomerate, Padenga Holdings returned to profitability after its mining unit, Dallaglio swung to a US$12.7million profit for the six months to June 2022 from a US$ 9.2 million loss in previous comparative period following the opening of Eureka gold mine late last year.
Eureka delivered 641 kg of gold for the period totaling group production of 933kgs against 270kgs in H1 of 2021.
The group used to focus on crocodile production but has since diversified into mining which now makes up 91 percent of revenue.
Revenue grew to US$ 56.9 million from US$ 20 million previous half year period which the group attributed to, “incremental gold volumes from Eureka mine which was not yet productive during the same period prior year, favorable gold prices and the non-repeat of the significant fair value write down on skins experienced in prior year.
Group profit before taxation from continuing operations amounted to US$ 15.7 million from a loss position of US$ 12.2 million.
The Zimbabwean crocodile operation sold 12 321 skins compared to 8298 skins in the comparable period in 2021 at budgeted prices, benefitting from progress made to date in establishing alternative markets for the over-sized, prior year carryover skins that did not meet premium customers’ requirements.
Zimbabwean crocodile operations generated US$ 2.3 million in cash from operating activities for the period under review.
“Working capital requirements continue to be managed effectively and minimal capital expenditure was incurred during the half year,” said the group.
Capital projects were focused on the ongoing rehabilitation of crocodile pens which the group says is now 91 percent complete and will contribute towards improving skin quality.