Pickstone mine expansion project on track, says Padenga

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the herald

business journalist

Padenga Holdings, which is listed on the Victoria Falls Stock Exchange (VFEX), says work on the capital project for underground mining operations at the Pickstone mine is underway and expected to be completed by the first quarter of 2023.

The group recently said it would spend more than US$21 million on expanding operations, with the bulk of the funding going to underground mining hardiness at the Pickstone mine.

“In mining, capital works at the Pickstone mine are currently underway to restart underground mine operations as the open pit nears the end of its life.

“The project is currently underway and is expected to be completed by the end of the first quarter of 2023,” Thembinkosi Sibanda, group chairman, said in a statement accompanying the financial results for the half-year to June 2022.

As part of the diversification of its traditional crocodile farming business, Padenga acquired a 50.1% stake in Dallaglio Investments (Pvt) Ltd, a company that owns gold mining businesses whose assets include Pickstone Peerless Mine, Eureka Gold Mine, Giant Gold Mining Claims and Blue Rock Claims.

During the six months, Dallagio delivered a strong performance, posting a pre-tax profit of US$12.7 million compared to a loss of US$9.2 million in the prior comparable period.

The volumes achieved of 933 kg compared to 270 kg in the first half of 2021 were only 4% lower than the volumes for the whole of 2021.

Mr Sibanda said this was due to the increased contribution from the Eureka mine, which was not yet fully operational during the same period last year, coupled with improving gold prices.

“As a result, cash generated from operations was $4.5 million versus $0.8 million in 2021, primarily due to increased gold sales,” he said. declared.

Group revenue of $56.9 million was up 181% from $20 million in the comparable period a year earlier.

Mining activity contributed 91% of the total revenue amounting to US$51.7 million from the sale of 933 kg of gold.

The Zimbabwean operation contributed 9% of revenue to $5.1 million.

Padenga’s pre-tax profit from continuing operations was $15.7m and Mr Sibanda said it was a remarkable turnaround from the $12m loss it posted last year. previous year at the same time.

“The return to profitability for the half-year was largely due to additional gold volumes of 641.4 kg from the Eureka mine which was not yet productive during the same period of the previous year, to a favorable gold and the non-repetition of the significant fair value depreciation on skins experienced in the previous year,” he said.

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