Dallaglio Reports 22% Surge in Gold Sales for Q3 2024
Dallaglio, the mining division of Padenga Holdings, has announced a remarkable 22% increase in gold sales for the third quarter of 2024. The company’s strong performance is largely due to higher mill feed grades and improved recovery rates.
By Ryan Chigoche
During the period, Dallaglio sold 2,025 kilograms of gold, up from 1,665 kilograms in the same quarter last year, a clear sign that the company’s operational improvements are paying off. This surge in gold sales comes at a time when global gold prices are favorable, helping the company capitalize on the current market conditions.
One of the key drivers behind this growth is a 6% improvement in average mill feed grades, which increased from 1.42 grams per ton to 1.51 grams per ton. This boost in grade is largely attributed to the Eureka Mine, where the open-pit resource has evolved as expected, allowing for more efficient gold extraction. Essentially, the better the grade, the more gold-bearing ore Dallaglio can process, which directly translates to higher production.
Dallaglio also saw a notable increase in milled tonnage, thanks to the addition of a new mill at the Pickstone Peerless Mine and improvements at Eureka Mine. These upgrades have had a direct impact on the company’s overall output, ensuring that Dallaglio continues to produce more gold. Additionally, plant recovery rates rose by 2 percentage points from 89% to 91%.
This improvement is linked to the company’s transition towards processing more underground ore at Pickstone Peerless Mine, a shift that will be fully operational by the end of 2024. The move to underground mining is expected to increase recovery rates and improve long-term profitability.
Looking ahead, Dallaglio is feeling optimistic about its future. The company is riding high on the continued strength of global gold prices, which are expected to remain firm through 2025. With strong growth this year, Dallaglio is well-positioned to take advantage of favorable market conditions.
A major focus in the coming months will be the ongoing underground development at Pickstone Peerless Mine, which is ahead of schedule. This shift to underground mining will not only help reduce operating costs but also improve gold extraction, further boosting the company’s financial performance.
In addition to its operational upgrades, Dallaglio is committed to continuous improvement. The company is on track to complete a new Pre-Leach Thickener at Eureka Mine by the end of 2024. Once operational, this new infrastructure will enhance gold recovery and play a crucial role in supporting Dallaglio’s long-term production goals.
Overall, Dallaglio’s performance in Q3 2024 has positioned the company for continued success. With its expansion at Pickstone Peerless Mine and its focus on increasing production and improving recovery rates, Dallaglio is on track to meet, and perhaps exceed, its targets for the year. Management is confident that, by capitalizing on strong gold prices and improving operational efficiency, Dallaglio will continue to deliver value to its shareholders.
While Dallaglio is driving growth in its mining division, the company’s broader strategy also involves balancing its operations with the more traditional business of crocodile farming. Since Padenga Holdings diversified into gold mining, this diversification has been instrumental in strengthening the overall financial health of the company.
Gold mining has provided a steady revenue stream, helping to stabilize earnings during times when demand for crocodile products fluctuates. This financial cushion has allowed Padenga to weather market challenges while continuing to invest in and improve its crocodile business.
For the nine months under review, the crocodile business saw a 3% increase in skin harvest volumes, rising from 24,115 to 24,813. Skin quality and customer demand remained stable, and premium skin sales were in line with both last year’s results and the targets set at the beginning of the year. However, total sales volume was down by 30%, with 21,418 skins sold compared to 30,586 in the same period last year. This drop was mainly due to some customers scaling back on orders, as the market for crocodile skins weakened relative to the previous year.
Despite these challenges, the synergies between Dallaglio’s gold mining operations and Padenga’s crocodile farming have proven invaluable. The stability provided by gold mining revenue has helped offset fluctuations in the crocodile business. This allows Padenga to keep its balance sheets healthy, even in more difficult times for the crocodile industry. Moreover, the cash flow from gold mining enables Padenga to reinvest in its crocodile business, ensuring that both sectors can thrive in a complementary, long-term growth strategy.
In essence, while the crocodile business faces challenges, the diversification into gold mining has given Padenga a financial cushion that allows it to continue expanding and improving both areas of the business. By leveraging the synergies between these two distinct sectors, Padenga is building a more resilient and balanced growth strategy for the future.