Zimbabwean mining and agribusiness group Padenga says it is banking on the strong rally in gold prices to eliminate its debt before the year closes, while also being on the lookout for new opportunities to expand its mining business.
By Ryan Chigoche
This was revealed by Group Chief Executive Michael Fowler, who acknowledged that surging bullion prices have enabled the company to reduce its debt—a key focus as the group looks to invest further in Zimbabwe’s mining sector.
According to the group’s financials for the period ending December 2024, Padenga managed to cut US$13.6 million off its debt, thanks to sustained high bullion prices throughout the year, which helped the mining unit record significant profits.
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.
With Padenga’s group debt currently standing at US$55.92 million and gold prices on an upward trend, Group CEO Michael Fowler said they plan to eliminate all borrowings by year-end.
“The gold prices have been very fortuitous. I’m happy the gold prices helped us a lot, and it’s enabled us to reduce debt, do the capex we want. But we remain focused on costs and making sure we’re an official producer. We would like to eliminate all our borrowings by year-end.”
While debt reduction remains the company’s top priority, Fowler added that they are still actively scouting for new investment opportunities in the mining sector.
“However, if we can find other opportunities, we may invest into other opportunities which will maintain the borrowings. So we’re keeping our eyes open at the moment. In Zimbabwe, there are lots of opportunities in gold. Our geology team and our management are constantly looking at where there are opportunities,” Fowler added.
Historically, Padenga was known for breeding crocodiles for the leather industry, a sector that once defined its core business. However, recognizing Zimbabwe’s immense mineral potential, the company gradually shifted its focus to gold mining.
Over the past decade, it has invested a staggering US$107 million in developing the Eureka and Pickstone-Peerless mines, resulting in a dramatic transformation of its revenue streams.
Padenga’s transition from crocodile farming to gold mining began in 2019 when it acquired a controlling stake in Dallaglio Investments through a US$19.9 million capital injection. This marked a pivotal shift, allowing the company to capitalize on Zimbabwe’s thriving gold sector and unlock substantial financial gains.
Since then, mining has proven to be a game-changer for the VFEX-listed company. In 2024, the group recorded a turnover of US$223 million, a 43% increase from the US$155.58 million recorded the previous year.
This growth was largely driven by increased gold production volumes as well as firm gold spot prices, as revenue contributions from the group’s business units were as follows: Dallaglio 86% (up from 81% in FY23), and Padenga Agribusiness 14% (down from 19% in FY23).
In 2024, crocodile farming accounted for just 14% of Padenga’s total revenue, a stark contrast to its previous business model. This rapid ascent in gold production has placed Padenga in direct competition with Zimbabwe’s mining heavyweights.
