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In a half-year performance that shows the potent combination of strategic execution and favourable market winds, Dallaglio Holdings Limited, the gold-mining subsidiary of Padenga Holdings, has announced a staggering 204 per cent surge in profit before tax, catapulting it to US$41.31 million for the period ending June 30, 2025, Mining Zimbabwe can report.
By Rudairo Mapuranga
The dramatic upswing from the US$13.60 million recorded in the same period last year is largely attributed to a record-breaking bullion price and a robust operational showing from its key assets, Eureka and Pickstone mines.
According to the results released to the market this week, the group turnover surged by 41 per cent to US$123.37 million, up from US$87.68 million in the first half of 2024, providing the revenue foundation for the explosive bottom-line growth.
The narrative of Dallaglio’s success in H1 2025 is a classic tale of two powerful drivers aligning perfectly. Firstly, the global gold market provided a formidable tailwind. The average spot price for an ounce of gold during the period was US$3,106, a remarkable 41 per cent increase from the US$2,198 per ounce average in H1 2024. This bull run, driven by global macroeconomic uncertainty, inflationary pressures, and central bank buying, meant that every gram of gold produced was significantly more valuable.
However, Dallaglio did not simply rely on market luck. The second driver was a 7 per cent increase in production, with output rising to 1,292 kilogrammes from 1,209 kilogrammes in the prior year. This was not achieved by chance but through improved operational efficiencies. The company reported higher mill feed grades and superior plant recoveries, particularly at its flagship Eureka Mine in Guruve, which consistently surpassed its production targets. This ability to increase both volume and value simultaneously created a multiplier effect on revenue.
EBITDA and Cash Flow: The Engines of Growth
A closer look at the financial metrics reveals the true strength of the mining operation’s performance. Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) for the mining unit skyrocketed by 114 per cent to US$49.14 million. This figure is critical as it strips out non-operational factors to show the core profitability of the mining activities. The leap indicates that the company is not just selling more gold at a higher price, but is doing so with improved margin control, likely through diligent cost management despite industry-wide inflationary pressures.
Perhaps the most significant indicator of financial health is the cash generated from operations, which saw explosive growth of 183 per cent to US$38.12 million, up from US$13.49 million. This robust cash flow is the lifeblood of any capital-intensive business like mining. The company explicitly noted that this liquidity “supported continued investment in strategic growth and debt reduction.” This strategic allocation of capital is a clear signal to investors of a disciplined management approach. Reducing debt strengthens the balance sheet, lowers interest expenses, and improves resilience against future market downturns, while simultaneous investment in growth projects secures long-term value.
Padenga Agribusiness: A Tale of Two Divisions
In contrast to the mining division’s unmitigated success, the story at the Padenga Agribusiness division is one of both resurgence and restructuring. The continuing operations, primarily focused on high-value crocodile skin sales, staged a commendable comeback. Driven by a 10 per cent improvement in the average price realised per skin and the success of cost-reduction measures implemented by management, the division reported a profit before taxation of US$1.13 million. This is a sharp reversal from the loss of US$1.83 million recorded for the same period last year, demonstrating that the core business model remains viable when market conditions and internal efficiencies align.
However, this operational profit was overshadowed by the costs associated with a major strategic shift. The division recorded an overall loss of US$6.04 million for the period, stemming from a US$5.25 million loss from discontinued operations. This charge is directly linked to the company’s decision to discontinue operations at the Urungu Crocodile Farm by June 30, 2025. The loss includes a write-down of the fair value of biological assets—essentially the crocodiles that were harvested out—as well as retrenchment and other restructuring costs. While painful in the short term, this “right-sizing” exercise is viewed by analysts as a necessary step to streamline the agribusiness unit, shed unprofitable operations, and position it for a more focused and sustainable future.
Looking ahead, management has struck a tone of confident optimism. The company’s statement emphasised a “resilient business model and disciplined execution” as the bedrock of its strong profitability growth trajectory. With borrowings significantly reduced, the focus remains on “efficient cost optimisation,” a prudent strategy in an unpredictable global economy.
For the full 2025 year, Dallaglio forecasts gold production to be in line with the prior year. The real excitement, however, is reserved for 2026. This anticipation is tied directly to the ongoing development and exploration successes highlighted in the report. At Pickstone Mine, preliminary drilling results show a potential 30 per cent increase in contained ounces, with an independent review of the updated block model scheduled for the third quarter.
Simultaneously, work at Eureka to achieve steeper open-pit slope angles could extend the mine’s life. The benefits of these geological advancements are expected to fully materialise in the 2026 production cycle, setting the stage for the next phase of growth.
