Padenga Holdings, the parent company of Dallaglio Investments, has put its search for new gold assets on hold. The group’s chairman has warned that a speculative frenzy, fuelled by record bullion prices, has made claims prohibitively expensive, Mining Zimbabwe can report.
By Ryan Chigoche
Speaking at the company’s annual general meeting in the capital recently, chairman Thembinkosi Sibanda said sellers are demanding unrealistic valuations, forcing the group to prioritise organic growth over external deals.
“Although we haven’t got one we can speak of today, there’s always overpricing in this game at this point in time because everybody thinks gold is doing so well,” the chairman said.
“And so they expect gold assets to be overpriced. We’ve said it’s not a good time to be in the market trying to purchase claims or anything like that because you’re going to be asked to pay more than they’re worth.”
Gold surged past US$5,000 per ounce in early 2026, extending a rally that saw prices close 2025 at US$4,332.59, up sharply from US$2,690.13 in 2024. The rally has attracted speculative capital into Zimbabwe’s mining sector, inflating the value of mineral claims and exploration properties.
Rather than chase overvalued targets, Padenga is shifting its focus to its existing operations. The group runs its mining business through Dallaglio Investments, which operates the Eureka and Pickstone Peerless mines.
“So the strategy the CEO has outlined is to develop, further grow, and expand our existing operations,” the chairman said. “We already know what resources are there. It just requires more capital to continue development.”
Padenga completed the full acquisition of Dallaglio in the first quarter of 2025, having taken an initial 50.1% stake in 2019 before acquiring the remaining 49.9%. The mining unit now accounts for 94% of group turnover, up from 86% in 2024, underscoring the company’s complete transformation from its origins as a crocodile farming business.
The group’s financial performance has been robust. For the year ended 31 December 2025, revenue rose 26% to US$265.82 million, while profit after tax nearly doubled, increasing 93.5% to US$70.7 million. Padenga has budgeted US$17 million for mining exploration in 2026, targeting resource expansion at its existing claims rather than external acquisitions.
The decision to pause acquisitions does not signal a retreat from gold. At Pickstone Peerless, a US$15 million investment is expected to boost output by 26%, while a pit redesign at Eureka is projected to add 15 tonnes of gold and extend the mine’s life to 2039. The group’s market capitalisation now stands at US$1.04 billion, making it Zimbabwe’s second most valuable listed company.
If market conditions normalise, Padenga may revisit external acquisitions. Chief Finance Officer Oliver Kamundimu said last month that the company is actively scouting for “correctly priced gold assets” across Zimbabwe. For now, however, discipline has prevailed over expansion.
That restraint is underpinned by a solid foundation. Dallaglio Investments’ gold portfolio comprises the producing Pickstone Peerless Mine near Chegutu and the Eureka Gold Mine in Guruve, alongside the Giant Gold Claims, which provide additional exploration and resource growth potential. Pickstone serves as the company’s flagship operation, while Eureka was successfully revived after years on care and maintenance, adding a second producing asset to the portfolio.
Together with the Giant Claims and associated exploration ground, these assets have established Dallaglio as one of Zimbabwe’s leading large-scale gold producers, with a strategy centred on both operational growth and resource expansion.
Thanks to improved performance at these assets, the company reported a strong production- and price-driven performance for the first quarter of 2026, with gold output rising 13% to 697kg from 618.9kg in the comparable prior-year period.
