Padenga commits US$30 Million to expand gold opera...

Padenga commits US$30 Million to expand gold operations as trade wars boost value

Pickstone Peerless mine, Eureka mine and the Cordillera project for ...

ZimNow Reporter

Padenga Holdings Limited has announced a US$30 million capital investment plan for 2025, with a strategic focus on boosting gold production through its mining subsidiary, Dallaglio Investments.

“We are capitalizing on previous investments and the favorable global environment to expand production and improve cost efficiency,” a company spokesperson said.

“The shift to underground mining at Pickstone is a long-term play for stability and sustained returns.”

The bulk of the funds—94.9%—will support operations at Eureka and Pickstone mines, with only US$1.5 million going towards upgrading the company’s crocodile farming business.

This latest investment signals Padenga’s confidence in Zimbabwe’s gold sector, which continues to benefit from elevated global prices driven by trade tensions between major economies.

As investors turn to safe-haven assets amid geopolitical uncertainty, gold has maintained upward momentum, making it a profitable focus for resource-rich markets like Zimbabwe.

Capital Allocation Breakdown:

• US$13 million will fund the construction of an underground shaft at Pickstone Mine, a key step in transitioning from open-pit operations.

• US$6 million is earmarked for further performance enhancements at Eureka Mine, building on prior infrastructure improvements like the pre-leach thickener.

• US$3.8 million will support an aggressive exploration drilling campaign—19,335 meters at Pickstone and 15,105 meters at Eureka.

The company aims to raise output to 85,000–90,000 ounces of gold in 2025, solidifying its position as the country’s second-largest gold producer.

In 2024, Padenga outpaced Caledonia Mining Corporation with a 17% increase in gold output to 2,638 kg.

This push comes on the back of US$107 million already invested by Padenga over the past five years in mining infrastructure and upgrades.

Zimbabwe’s gold industry hit a record 36.48 tonnes in 2024, exceeding the government’s 35-tonne target.

Projections suggest another 7% increase in 2025 but rising energy costs—now averaging USc14.21 per kWh—pose a significant challenge to operating margins.

Still, with global gold prices buoyed by persistent trade tensions and inflation concerns, Padenga’s aggressive capital program positions it well to ride the next wave of demand.