Padenga Holdings Q1 2023: Gold Production Volumes Increase by 19%, Crocodile Skin Harvest Volumes Surge by 45%
- What impact did the depreciation of the local currency have on the gold production results?
- The exchange rate as determined by the official Auction was 687.28 to one USD at the beginning of the quarter and had moved to 929.86 to the US unit by the end of the quarter. Despite the decline in inflation rates during the quarter, the depreciating exchange rate likely had some impact on the gold production results.
Padenga Holdings Limited Trading Update
- Eureka Mine achieved a 10% increase in throughput compared to Q1 2022.
- The sale of stock skins from prior years is continuing.
- The international gold spot price has continued to be firm and is projected to remain so for the remainder of 2023.
- The quarter under review was characterized by tight monetary measures.
- The local currency continued depreciating against the greenback.
- Gold sales volumes for the three months increased by 19% to 541kgs.
- The Nile crocodile operations recorded a 45% increase in skin harvest volumes.
- The business has successfully concluded new contract negotiations with customers.
- Commercial production from the Pickstone underground project is expected to commence in late Q3 2023.
- Gold production volumes are forecast to increase from Q2 onwards.
Key Takeaway
Padenga Holdings Limited is pleased to announce strong results for their first quarter of the 2023 fiscal year. Gold production increased significantly and Nile crocodile operations also saw a 45% increase in skin harvest volumes. Market outlook remains optimistic in spite of the complex and challenging economic environment, with the Group’s Management focusing on generating value growth for shareholders.
Useful links
- Padenga Holdings Limited (PHL.vx) Q12023 Interim Report
- Padenga Holdings Limited on AfricanFinancials
- Corporate Website
About Padenga Holdings Limited (PHL.vx)
Padenga Holdings Limited is the leading supplier of crocodile skins and meat in Zimbabwe, accounting for nearly 85% of the global supply of Nile crocodile skins used for high-end luxury fashion brands. The company operates three crocodile breeding and production farms in Zimbabwe; Kariba Crocodile Farm, Ume Crocodile Farm and Nyanya Crocodile Farm. Each farm has the capacity to breed close to 15 000 hatchlings per year. Nile alligators are bred at Lone Star Alligator Farm in Texas, USA. Padenga Holdings Limited produces crocodile skin and meat products for consumption by the local market and for export to European and Asian markets. Padenga Holdings Limited is listed on the Victoria Falls Stock Exchange
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