Padenga Holdings releases its Audited Condensed Consolidated Financial Results FYE 31 December 2023

By Published On: March 28th, 2024Categories: Corporate announcement, Earnings

The Directors are pleased to present the Audited Condensed Consolidated Financial Results for the year ended 31 December 2023.

Directors’ Responsibility

The Company’s Directors are responsible for the preparation and fair presentation of the Group’s financial statements, of which this publication represents an extract. The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) Accounting Standards as issued by the International Accounting Standards Board (IFRS Accounting Standards). The principal accounting policies of the Group are consistent with those applied in the previous financial year.

Functional Currency

The financial statements are presented in United States Dollar (US$), which is the functional and presentation currency of the Group.

Auditor’s Statement

These condensed consolidated financial results should be read in conjunction with the complete set of consolidated financial statements for the year ended 31 December 2023, which have been audited by KPMG Chartered Accountants (Zimbabwe), who expressed a qualified audit opinion arising from continuing issues from prior years relating to non-compliance with International Financial Reporting Standards IAS 21, The Effects of Changes in Foreign Exchange Rates, non-compliance with IAS 37, Provisions, Contingent Liabilities and Contingent Assets in the prior year due to the lack of audit evidence and inappropriate methodology to support management’s estimation of the environmental restoration provisions and related rehabilitation asset, non-compliance with IFRS 3, Business Combinations in the prior period on determination of the fair values of the acquired net assets and the inappropriate application of IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors.

The external auditor has noted one key audit matter with respect to the existence of mines inventories. The auditor’s independent report on the consolidated financial statements (from which these results were extracted) is available for inspection at the Company’s registered office and is posted on the Company’s website: The engagement partner for this audit opinion is Mr Michael de Beer (PAAB Practicing Number 0369).


The operating environment for the year ending 31 December 2023 remained very challenging. The Group experienced unprecedented cost pressures as prices continued on an upward trend in US$ terms. The cost pressures were initially a result of the global shortages that arose after the Russia-Ukraine conflict, but during the last quarter, the tensions in the Middle East brought in logistical challenges that resulted in a rise in transportation costs across the globe.


Mining Operations

Dallaglio maintained a strong position in the top three gold producers nationally after registering gold sales of 2,120kgs (1,961kgs FY22).

The volume growth of 8% was driven by increased plant throughput at Eureka Mine, complemented by the increased production at Pickstone Peerless following the commissioning of Pickstone Underground Mine in September 2023. Pickstone Peerless continues to access supplementary ore from open pits to complement the underground feed during the ramp up phase.

Nile Crocodile Operations

The Nile crocodile operations recorded a 49% increase in skin harvest volumes during the 2023 financial year, compared to prior period (50,675 vs 34,117). The business witnessed a significant improvement in the quality of skins.

Skin sales for the year at 76,108 skins were 129% above the 33,189 skins sold for the same period last year. The significant increase in sales volume was due to the sale of both the 10,000 premium skins whose harvest was deferred from 2022, and previously reported stock skins from prior years. Resultantly, the old stock skins were reduced from 25,841 skins held at the beginning of the year to 2,470 at the end of the year. The balance of these skins will now be sold during Q2 of 2024. The clearance of the old stock skins will enable the business to improve the average price realised per skin as future sales will predominantly be from newly produced skins of better quality.


Consolidated Results

The Group recorded a turnover of $155,575,305 in the year under review. This was a 22% increase over the $127,894,086 recorded in prior year. The revenue contributions from the Group’s business units were as follows: Dallaglio 81% (82% in FY22), Nile Crocodiles 19% (18% in FY22), The Group revenue performance growth was a result of improved production volumes and average selling prices realised by both operating units.

The Group recorded an EBITDA of $26,691,450 for the year ($32,282,038 in FY22). The decline was mainly due to the impact of the mandatory surrender requirements, old stock skins sold at a discount and increased operating costs.

A biological asset fair valuation gain of $8,274,119 ($2,693,509 in FY22) was realised for the year, mainly due to the high number of premium skins held in stock at the end of the current year. These skins were harvested after the last grading date in December and sold to our premium customer in Q1 of 2024.

A reduction of 15% was recorded on interest expense for the Group at $8,443,366 ($9,956,327 in FY22), as efforts were focused on managing the debt levels throughout the year.

The Group realised profit before tax of $14,284,133 for the year. This was a 3% increase on the $13 892,552 realised in FY22.

Cash generated from operating activities for the year under review amounted to $40,665,423 a 65% increase on the $24,604,823 for prior year. Cash generated increased as a result of improved revenues and efficient working capital managment.

Dallaglio Financials

Dallaglio recorded a significant 20% increase in turnover from the $104,942,223 recorded in prior year to $125,622,975 in FY23. This was achieved on the back of increased volumes sold further buoyed by increased spot prices for gold.

The business realized a profit before tax of $9,383,085 ($12,932,665 in FY22). The decline in profits is a result of increased mining costs arising from the uneconomic last stages of the open cast pits at Pickstone Peerless before the underground mine was commissioned in September.

This business increased its cash generated from operations by 67% from $15,746,416 in FY22 to $26,236,853 in current year.

Nile Crocodile Financials

Revenue for the Zimbabwean crocodile business at $29,952,330 increased by 31% in comparison to prior year, driven by the 101% growth in the skin sales volumes.

The business recorded a 221% increase profit before taxation to $6,216,143 compared to the $1,934,733 recorded in prior year.

The business recorded a biological asset fair valuation gain of $8,274,119 (gain of $2,693,509 in FY22) benefiting from higher average skin prices forecast in FY24 and an increased quantity of premium quality skins on hand at end of FY23.

The Zimbabwean crocodile operations increased cash generated from operating activities by 31% to $6,491,538 from the $4,936,958 generated in FY22. This was a result of improved sales revenue receipts and close working capital management.

Key Capital and Expansion Projects

Phase one refurbishment of the underground mine at Pickstone Peerless Mine in Chegutu was commissioned in September 2023. The Group is now engaged in further capital expansion at Pickstone for Phase two of the underground project. This is expected to be completed at the end of 2024 and open production from 7-level.

At Eureka Mine, a Pre-Leach Thickener and Solar Project will be undertaken in 2024. The Thickener project involves introducing a thickener, which is a standard gold processing plant installation placed after the milling circuit, resulting in an improvement in the plant recovery. The Solar project is expected to reduce the cost of powering the mine whilst improving its environmental impact. Both projects are expected to come online by the end of 2024.

Capital projects at the Farms during the year under review were mainly focused on the annual rehabilitation of crocodile pens which is central to improvement of skin quality. The 2023 rehabilitation program was completed on schedule. Other projects included the solar energy expansion, feed manufacturing machinery and initial costs towards the planned construction of a waste water treatment plant. The installation of the phase 3 solar array at the northern farms to bring the solar plant operating capacity to a total of 1.2MW has been concluded with commissioning works underway for completion by the end of June 2024.

Sustainability and Good Husbandry Practices

The Group continuously strives to achieve and maintain world class standards through good corporate governance practices.

The three crocodile farms successfully underwent the annual audits for certification by the International Crocodilian Farmers Association (ICFA). The Wastewater project to fully conform with the ICFA standards is currently in progress and review processes are also underway.

The mines hold valid Environmental Impact Assessment (EIA) Certificates.

Our community and society that we operate in remains pivotal in the Group’s operations. Various programs were undertaken during the year under review and most of these initiatives are ongoing to ensure the livelihood and sustainability of numerous stakeholders.


The Padenga Crocodile business, which has sat in Padenga Holdings Limited since the incorporation of this company in 2010, has been transferred on “a going concern basis” into a separate wholly owned subsidiary of Padenga Holdings Limited, with effect from the 1st of January, 2024. This subsidiary company, called Padenga Agribusiness (Private) Limited, was incorporated on the 29th August 2023. With effect from 1st January 2024, the Padenga Nile Crocodile business and its associated staff was transferred from Padenga Holdings Limited to Padenga Agribusiness.

From that date the Padenga Crocodile business is now being managed on a day to day basis by Padenga Agribusiness under a new Board being established to supervise and guide that business.

The Padenga mining business is already managed on a day to day basis by Dallaglio, which has its own Board to supervise and guide the mining business.

With effect from 1st January 2024, Padenga Holdings Limited is now a holding company with a head office structure and Board of Directors, supervising Padenga’s interests in Dallaglio and in Padenga Agribusiness, driving the strategy to be adopted by these operating units in pursuit of Padenga’s vision and objectives, agreeing annual budgets with the operating units, monitoring the performance of these operating units, bringing management of the operating units to account, seeking growth opportunities and reporting Padenga’s performance to all stakeholders.

Purchase of the 49.9% Minority Interest in Dallaglio

The acquisition of the 49.9% shareholding in Dallaglio currently held by the minority shareholders is yet to be concluded. One condition precedent is still to be met.


After successful completion of Phase 1 of the Pickstone Peerless underground mining, commercial production commenced in September 2023 and Phase 2 of the project is ongoing, following which the Group’s revenue and profits are envisaged to register further growth.

Eureka mine continues to contribute significantly to volume growth and profitability and expansion projects have also been embarked on to further enhance growth and efficiencies.

The Nile Crocodile farming division experienced a turnaround, having undergone numerous challenges mainly relating to changing customer requirements as well as adverse market conditions over the past three years. The business has returned to optimal skins volume production at improved quality, and is now well positioned to maximize skin sales realizations. Efforts to re-enter the crocodile meat export market are progressing and are expected to generate improved returns for the business in the latter part of the year.

Having returned to profitability, the Group will continue to focus on volume growth and profitability, with a strong emphasis on shareholder value preservation. Engagements with relevant regulatory authorities will also remain a key focus area.


The Board has pleasure in declaring a final dividend of US0.26 cents per share payable in respect of all ordinary shares of the Company. This final dividend will be payable to all the shareholders of the Company registered at the close of business on the 12th of April 2024. This brings the total dividend for the year to US0,45c per share.

The payment of this final dividend will take place on or around the 25th of April 2024. The shares of the Company will be traded cum-dividend on the Victoria Falls Stock Exchange up to the market day of 9th of April 2024 and an ex-dividend from the 10th of April 2024.


The Group continues to grow amidst the operating challenges due to the level of dedication and leadership demonstrated by the Group’s management and staff. On behalf of the Board of Directors, I am grateful and commend the teams for the diligence and hard work.

I also extend my profound gratitude to the Group’s valued customers, suppliers and various stakeholders for their unwavering support and confidence in us.

TN Sibanda
26 March, 2024

Related Downloads

Padenga Holdings Limited FY2023 Abridged Results.pdf

Padenga Holdings Limited FY2023 Analysts Briefing.pdf

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Padenga Holdings Limited (PHL.vx)

Share price: 17.00 US cents (-0.12 | -0.70% – 17/05/24)