Mutapa Gold Resources’ profit after tax tripled to US$156 million in the nine months to September 2026, as higher gold prices and increased production lifted earnings at the state-owned mining group, Mining Zimbabwe can report.
By Rudairo Mapuranga
According to Mutapa Gold CEO Patrick Maseva-Shayawabaya, the group’s third-quarter performance update shows that profit after tax rose from US$52 million in the same period last year, while quarterly revenue increased 39% to US$127 million.
“Our nine-month performance reflects the benefit of stronger gold production and improved realised prices, while our investment in operational efficiency and expansion projects is intended to strengthen the group’s production capacity over the longer term,” CEO Patrick Maseva-Shayawabaya said.
Gold production for the nine months rose 16% to 89,639 ounces, compared with 77,415 ounces a year earlier. Production in the quarter increased 14% to 30,116 ounces despite a 6% decline in ore milled.
The improvement came as the average realised gold price climbed 22% to US$4,211 an ounce in the quarter, from US$3,440 a year earlier.
Quarterly earnings before interest, tax, depreciation and amortisation (EBITDA) increased 58% to US$67 million, while profit after tax rose 57% to US$45 million.
The production increase was supported by an improvement in head grade to 1.50 grammes per tonne from 1.32 g/t and a rise in recovery to 86% from 83%.
Mutapa said milling volumes were affected by a 29-day breakdown at Freda Rebecca Gold Mine’s Mill Number Two. Recovery improvements followed the commissioning of three leach tanks at Freda Rebecca and Jena Mines.
The group’s nine-month results come as it advances expansion plans aimed at increasing output from its gold operations.
Implementation of the Shamva Hill project began on October 1, with completion expected by December 2028. The project involves developing a 14-million-tonne open-pit mine at a projected cost of US$240 million and is expected to increase annual gold production from 25,000 ounces to about 80,000 ounces.
Eleven local banks have signed up for a syndicated loan facility that has been increased to US$60 million from an initial US$50 million. Mutapa said discussions were continuing on the external loan component of the project’s financing.
The group is also preparing to advance the Jena Mines Phase One expansion, which is expected to begin in the second quarter of 2027. The project aims to increase annual production from 15,000 ounces to approximately 40,000 ounces.
Exploration is continuing across the group, with about 88,000 metres of diamond drilling completed by the end of September. An updated resource estimate for Freda Rebecca is expected by January 2027.
Despite the stronger operating performance, costs increased. All-in sustaining costs rose 13% to US$2,337 an ounce, primarily reflecting higher sustaining capital expenditure and royalties, while cash costs remained broadly stable at US$1,569 an ounce.
Mutapa expects gold production for the 12 months ending December 2026 to exceed its previous forecast of 110,000 ounces. However, the company cautioned that financial performance could be affected by a lower gold price.
The board will consider a final dividend after the year-end.
