Dallaglio Reports 22% Surge in Gold Sales for Q3 2024

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Dallaglio Investments, the mining division of Padenga Holdings, has reported a remarkable 22% increase in gold sales for the third quarter of 2024. This strong performance is attributed 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—clearly indicating that the company’s operational improvements are delivering results. This surge in gold sales coincides with favourable global gold prices, enabling the company to capitalize on the current market conditions.

A key driver behind this growth was a 6% improvement in average mill feed grades, which rose from 1.42 grams per ton to 1.51 grams per ton. This improvement is largely credited to the Eureka Mine, where the open-pit resource has developed as expected, allowing for more efficient gold extraction. Essentially, higher grades translate to the processing of more gold-bearing ore, directly boosting production.

Dallaglio also recorded a significant increase in milled tonnage, supported by the addition of a new mill at the Pickstone Peerless Mine and enhancements at the Eureka Mine. These upgrades have positively impacted the company’s overall output. Furthermore, plant recovery rates improved by two percentage points, rising from 89% to 91%.

This improvement is linked to the company’s gradual transition to processing more underground ore at Pickstone Peerless Mine, a shift expected to be fully operational by the end of 2024. The move to underground mining is anticipated to enhance recovery rates and drive long-term profitability.

Optimism for the Future

Dallaglio remains optimistic about its future, buoyed by the continued strength of global gold prices, which are expected to remain robust through 2025. With strong growth in 2024, the company is well-positioned to leverage favourable 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 transition will reduce operating costs, improve gold extraction, and further boost the company’s financial performance.

Additionally, Dallaglio is on track to complete a new Pre-Leach Thickener at Eureka Mine by the end of 2024. Once operational, this infrastructure will enhance gold recovery and play a pivotal role in supporting the company’s long-term production goals.

Overall, Dallaglio’s performance in Q3 2024 has positioned the company for continued success. With expansion at Pickstone Peerless Mine and its focus on increasing production and recovery rates, Dallaglio is on course to meet—and potentially exceed—its targets for the year. Management remains confident that by capitalizing on strong gold prices and improving operational efficiency, the company will continue to deliver value to its shareholders.

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Diversification Strengthens Financial Health

While Dallaglio drives growth in its mining division, Padenga Holdings continues to balance its operations with its traditional crocodile farming business. Since diversifying into gold mining, this strategy has played a crucial role in strengthening the company’s overall financial health.

Gold mining has provided a steady revenue stream, stabilizing earnings during periods of fluctuating demand for crocodile products. This financial cushion has enabled Padenga to weather market challenges while continuing to invest in and enhance its crocodile business.

During 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, with premium skin sales aligning with last year’s results and initial targets. However, total sales volume decreased by 30%, with 21,418 skins sold compared to 30,586 in the same period last year. This decline was primarily due to reduced orders from some customers as the crocodile skin market weakened compared to the previous year.

Despite these challenges, the synergies between Dallaglio’s gold mining operations and Padenga’s crocodile farming have proven invaluable. Gold mining revenue has helped offset fluctuations in the crocodile business, maintaining healthy balance sheets even during challenging times. Additionally, cash flow from gold mining has allowed Padenga to reinvest in its crocodile business, ensuring both sectors thrive within a complementary, long-term growth strategy.

Building Resilience for the Future

In summary, while the crocodile business faces market challenges, diversification into gold mining has provided Padenga with the financial stability to continue expanding and improving both areas of its operations. By leveraging the synergies between these distinct sectors, Padenga is building a more resilient and balanced growth strategy for the future.

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