Dallaglio, the mining arm of VFEX-listed Padenga, more than doubled gold output in 2022, the first full year of production for its new mine, Eureka.
The company, which also runs Pickstone Mine near Chegutu, went from 976kg in 2021 to 1961kg as Eureka’s production added to the output. This makes Dallaglio one of the three largest gold producers in the country.
Riding on strong gold prices last year, Dallaglio swung from a loss of US$4.3 million in 2021 to a profit of US$12.9 million last year.
“This was attributable to the increased contribution from Eureka mine which had not yet been fully operational during the same period last year coupled with improved gold prices,” the company says.
Gold prices were strong throughout the year and closed the year at US$ 1,823 per ounce, supporting Dallaglio’s profits.
Padenga spent US$13.5 million on capital expenditure last year, with the mining unit getting 92% of that spending. The company is currently upgrading the underground at Pickstone Mine and the project will be completed by August this year.
Eureka’s performance underlines the success of Padenga’s strategy to go into gold, offsetting the decline of its traditional crocodile skins business. Mining now accounts for 82% of Padenga’s revenue. Eureka Mine, in Guruve, had been shut down for two decades when Dallaglio took over, resuming production after investing over US$50 million to get it back up.
Now, Dallaglio is one of the largest gold producers.
By comparison, Caledonia produced 2,300kg in 2022 from its Blanket mine last year, and expects to increase production this year. Kuvimba Mining House last year said it produces about 3,000kg per year from its gold mines, which include Freda Rebecca Mine. RioZim, once one of the country’s biggest gold miners, produced just 926kg last year. RioZim has suffered from low grades, which forced it to suspend operations at Dalny Mine last year.