MINER and crocodile farming group Padenga Holdings Limited expects a “robust financial performance” from its mining subsidiary, Dallaglio Investments (Private) Limited, through year-end, supported by elevated global gold prices.
Dallaglio’s revenue rose 30% to US$251,06 million last year, driven by output from its Eureka and Pickstone Peerless mines, as global gold prices surged 61%.
As a result, the mining unit’s contribution to group revenue increased to 94%, up from 86,33% in 2024.
Padenga’s market capitalisation surged to US$1,04 billion on April 2, making it Zimbabwe’s second-most valuable listed company on the Victoria Falls Stock Exchange. However, investor sentiment has since softened, with valuation easing to US$767,33 million as of Wednesday, though it remains the second-largest listed firm.
Padenga’s performance continues to be driven by strong gold prices and rising production volumes at its Dallaglio mining unit. Operational upgrades, improved ore grades, and renewable energy investments are expected to support output and efficiency, even as volatility in global bullion markets presents
ongoing risk.
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“A robust financial performance is expected through to year-end for Dallaglio, supported by stable and consistent production at the Eureka Mine, improving ore hoisting performance at Pickstone Mine, and a favourable gold price outlook that remains at elevated levels,” Padenga said in its first quarter trading update for the period ended March 31, 2026.
Dallaglio produced 696,7kg of gold during the quarter, a 13% increase from 618,9kg in the comparable period, driven by higher average mill feed grades across both Eureka and Pickstone operations.
“The gold spot price rose markedly, averaging US$4 875 per ounce during the period, compared to US$2 887 in the prior year, underpinning strong revenue growth,” Padenga said.
It added that rising prices were supported by strong investor demand amid global economic uncertainty and sustained central bank purchases.
Padenga said the Gravity Upgrade Project at Eureka Mine remains on track for commissioning in the second quarter of 2026, expected to improve plant recovery and reduce operating costs.
Dallaglio’s board has also approved an upgrade of Eureka’s cyclone clusters to boost milling capacity, with commissioning targeted for the fourth quarter of 2026.
Meanwhile, the Eureka solar power project achieved first power last month, with ramp-up to full 5MW capacity underway and expected before the end of the current quarter.
At Pickstone Peerless Mine, the focus remains on diamond drilling and mine development to expand reserves, maintain consistent ore hoisting, and guide future capital investment decisions.
Exploration drilling will prioritise confirming the orebody at Concession Hill and establishing the depth continuity of the reef below the Peerless
open pit.
However, Padenga cautioned that international gold price volatility remains a key risk.
According to the World Gold Council’s April 2026 commentary, gold closed the month at US$4 611, easing from a January peak of US$5 405 per ounce.
FBC Securities noted that easing market volatility, perceptions of reduced geopolitical risk, and technical trading pressures have weighed on gold, with the metal now vulnerable below its 55-day moving average and potentially testing the 200-day average near US$4 075/oz.
The weaker gold price trend last month triggered selling pressure on Padenga on the Victoria Falls Stock Exchange.
