Padenga Holdings Limited recorded higher gold production and improved revenues in the first quarter of the 2026 financial year, driven by stronger international bullion prices and improved ore grades at its mining operations.

In a trading update for the quarter ended March 31, 2026, the group reported that gold production from its mining subsidiary, Dallaglio Mining rose 13 percent to 696.7 kilogrammes, compared to 618.9 kilogrammes produced during the same period last year.

The company attributed the growth mainly to higher average mill feed grades at its Eureka and Pickstone operations, which enhanced processing efficiency and output volumes.

Padenga said the average gold spot price during the quarter climbed sharply to US$4,875 per ounce, up from US$2,887 per ounce in the comparable prior-year period. The surge in prices significantly supported revenue performance, with the company citing strong investor demand amid global economic uncertainty and sustained gold purchases by central banks as key drivers.

During the period under review, the group also noted changes to Zimbabwe’s gold royalty framework following the introduction of a sliding royalty scale. Under the revised structure, a 10 percent royalty applies to gold sold above US$5,000 per ounce, replacing the previous flat royalty rate of 5 percent.

At Eureka Mine, Padenga said its Gravity Upgrade Project remains on schedule for commissioning in the second quarter of 2026 and within budget. The project is expected to improve gold recovery rates while reducing operational costs.

The board has additionally approved an upgrade of cyclone clusters at Eureka Mine aimed at increasing milling circuit capacity. Procurement processes are underway, with installation and commissioning targeted for the fourth quarter of the year.

The company further reported progress on energy sustainability initiatives after the Eureka solar power project achieved first power in April 2026 following completion of transmission infrastructure works. Ramp-up toward the plant’s full 5MW capacity is expected before the end of the second quarter.

At Pickstone Peerless Mine, exploration and mine development programmes remain focused on expanding reserves and sustaining ore hoisting performance. Diamond drilling activities are targeting confirmation of mineralisation at Concession Hill while also assessing depth continuity below the Peerless open pit.

Meanwhile, Padenga’s agribusiness division recorded skin sales of 17,667 units during the quarter, representing a 172 percent increase from 6,495 skins sold in the same period last year. The company said the increase largely resulted from disposal of excess inventory accumulated from previous harvests following a restructuring exercise, with skins sold at discounted prices to reduce stock volumes.

Despite continued weakness in the global crocodile skin market, the group said efforts are ongoing to maximise returns under depressed trading conditions and expressed confidence that the agribusiness unit will return to profitability in the short to medium term.

 Padenga expects solid financial performance for the remainder of the year, supported by stable production levels, operational improvements at Pickstone Mine and sustained strength in gold prices.