Padenga focuses on reducing borrowings

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PADENGA Holdings (Padenga) says it is on a drive to reduce borrowings and the associated interest charges to sustainable levels and improve profitability.
The Victoria Falls Stock Exchange-listed firm’s chairman, Themba Sibanda, said the group witnessed a 15 percent reduction in net interest expenses for the group at US$3,6 million during the half year ended June 30, 2023 compared to US$4,3 million in the same period last year owing to the restructuring of borrowings.
“The group is on a drive to reduce borrowings and the associated interest charges to sustainable levels and to improve profitability,” Sibanda said in a statement accompanying financial results for the half year.

“We expect to record meaningful profit growth for the group for the full year to December 2023 compared to what was achieved in the prior year.”
During the period under review, the group recorded revenue of US$74,4 million, a 31 percent increase from the US$56,8 million recorded last year.
Dallaglio contributed 84 percent to the overall revenue performance during the half year while Nile crocodiles contributed 16 percent.
“The revenue performance of the group was largely due to the significant contributions from Eureka Gold mine, coupled with the carry forward of skin sales from 2022,” Sibanda said.
Meanwhile, the group recorded reduced earnings before interest, taxes, depreciation and amortisation of US$10,99 million for the six months, impacted by an increase in operating costs.
Operating costs for the period rose by nearly 39 percent to US$63,78 million from US$46 million recorded in the comparative period owing to an increase in expenditure.
The rise in operating expenses was due to Padenga undergoing major capital projects at its mine and crocodile pens.
Resultantly, profit after tax fell by nearly 53 percent to US$5,33 million at the end of June compared to US$11,27 million in the comparative 2022 period. The group generated US$12,88 million from operating activities for the half year.
“The increase in cash generated was mainly due to improved revenues and efficiencies,” Sibanda said.
During the period under review, the group’s mining subsidiary, Dallaglio Investment Limited, refurbished the underground mine at Pickstone Peerless Mine in Chegutu, phase one of the project having been completed in August 2023.
The mining subsidiary registered gold sales of 1 080 kilogrammes (kg) during the period under review, up from 933kg in the comparative 2022 period.
Concerning its crocodile skins, strategies to improve skin quality and an annual rehabilitation of crocodile pens saw a 90 percent increase in skin harvest volumes during the first half of 2023.