Dallaglio Investments delivered a stellar financial performance in 2024, reporting a 350% increase in pre-tax profit to US$42.18 million, sharply up from US$9.38 million in 2023, as revenue also surged 53% to US$192.53 million in the period.
By Ryan Chigoche
This remarkable financial performance was driven by a historic 27% rise in gold prices—the strongest annual gain in 14 years—combined with Dallaglio’s 29% increase in gold sales volumes.
During the reported period, Dallaglio, which operates both the Pickstone-Peerless and Eureka mines, saw gold sales rise to 2,740 kilograms from 2,120 kilograms. This growth was supported by improved ore grades at both mines and plant optimizations implemented since late 2023.
As a result, cash flow from operations also jumped from US$30 million to US$50.53 million.
Gold prices hit multiple records last year, with the LBMA Gold Price PM peaking at US$2,777.80 per ounce in October amid inflation concerns, geopolitical tensions, and strong central bank buying, particularly from emerging markets. The rally has continued into early 2025, with prices surpassing US$3,200 per ounce, driven by escalating U.S.-China trade tensions and sustained investor demand for safe-haven assets.
A significant operational milestone in 2024 was the transition from open-pit to underground mining at Pickstone-Peerless, with the underground project now fully commissioned and ramped up. Building on these advances and the strong financial results, Dallaglio is intensifying its focus on exploration and expansion to ensure sustainable, long-term growth.
The successful ramp-up at Pickstone-Peerless lays a solid foundation, while upcoming exploration drilling at Eureka is aimed at unlocking additional underground potential. These efforts are part of a broader strategy to maintain steady production levels in the near term and drive future increases through targeted capital investments.
Group Chairman Thembinkosi Sibanda, in the group’s financial report, highlighted the company’s exploration plans at Eureka:
“The Pickstone underground project continues to be developed. Exploration drilling at Eureka will commence in 2025 to confirm long-term underground potential, with a full feasibility study expected by 2027. Gold production in 2025 is forecast to remain in line with 2024 volumes, while current expansion capital expenditure is expected to boost production starting in 2026.”
Parent company Padenga invested US$20 million into mining operations in 2024 and has allocated a further US$28.5 million for 2025 to expand underground operations. These investments align with the company’s goal of reaching 100,000 ounces (3,110 kilograms) of gold production next year.
At Eureka Mine, a key asset in the portfolio, significant upgrades already include the installation of a US$5 million pre-leach thickener in Q1 2025, which improved recovery rates, reduced reagent use by about 8%, and enhanced water efficiency. Additionally, new mining equipment was delivered, boosting throughput and reducing downtime. Management is also considering a gravity circuit upgrade targeted for Q3 2025, potentially improving gold recovery by 5–7%.
Padenga’s 2025 capital expenditure budget totals US$30 million, with US$15 million earmarked for Eureka’s exploration, equipment upgrades, and the installation of a 7-megawatt solar plant designed to mitigate Zimbabwe’s chronic power shortages.
These strategic investments position Dallaglio and Padenga to sustain strong production levels and capitalise on an extended period of elevated gold prices, while enhancing operational resilience amid ongoing global economic and geopolitical uncertainties.
