Padenga Holdings releases its Reviewed Interim Condensed Consolidated Financial Results for HYE 30 June 2023

By Published On: September 22nd, 2023Categories: Corporate announcement, Earnings
Padenga Holdings Limited 2023 Interim Results For The Half Year

Padenga Holdings Limited (PHL.vx) HY2023 Interim Report

The Directors are pleased to present the Reviewed Interim Condensed Consolidated Financial Results for the six months ended 30 June 2023

Directors’ Responsibility

The Company’s Directors are responsible for the preparation and fair presentation of the Group’s financial statements. The financial statements have been prepared in accordance with International Accounting Standard (IAS) 34 Interim Financial Reporting. The principal accounting policies of the Group are consistent with those applied in the previous financial year and in the manner required by the Securities and Exchange (Victoria Falls Stock Exchange Listing Requirements) Rules.

Functional Currency

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

Reviewer’s Statement

These condensed consolidated interim financial results of Padenga Holdings Limited and its subsidiaries, for the six months ended 30 June 2023, have been reviewed by Messrs KPMG Chartered Accountants (Zimbabwe) (KPMG). KPMG expressed a qualified review conclusion, arising from continuing issues from prior year 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, non-compliance with IFRS 3, Business Combinations and the inappropriate application of IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors. A copy of the reviewer’s conclusion is available for inspection at Padenga Holdings Limited’s registered office. The engagement partner for this review is Michael de Beer (PAAB Practicing Certificate Number 0369).


During the six months ended 30 June 2023, the Group continued to be impacted by several market and regulatory changes that required agile management. While global inflation rates slowed down as central banks increased interest rates to fight inflation, on the domestic market, the Zimbabwean dollar continued to depreciate against major currencies resulting in increased inflation particularly in June 2023. Tight monetary policy measures instituted by the monetary and fiscal authorities curtailed the rate of local currency devaluation post the reporting period.


Mining Operations

Dallaglio maintained its spot as one of the top three gold producers in the country after registering gold sales of 1,080kgs (933kgs-H1 2022). The volume growth of 16% was largely driven by increased plant throughput at Eureka mine.

The major capital project for the period under review was the refurbishment of the underground mine at Pickstone Peerless Mine in Chegutu. Phase one of the project was completed in August 2023.

Nile Crocodile Operations

The Nile crocodile operations recorded a 90% increase in skin harvest volumes during the first half of 2023, compared to prior period (21,280 vs 11,217) benefiting from a harvest of 10,000 premium skins carried over from 2022. This is an indication that strategies to improve skin quality over the past two years are starting to bear fruit. Skin sales in the six months at 18,709 skins were 52% above the 12,321 skins sold for the same period last year. We have extended the production season to the end of February annually to incorporate the full summer period and this will contribute towards finishing skins to the increased quality standards demanded by the market. The sale of stock skins from prior years is continuing with the expectation that these will be fully disposed of by the end of the current financial year. Capital projects during the first half of the year 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.

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 October 2023.


Consolidated Results

The Group recorded revenue of US$74,420,384 for the six months under review. This was a 31% increase over the US$56,865,837 recorded in prior period.

Revenue contributions from the Group’s business units were as follows: Dallaglio 84% (91% in H1 2022), and Nile crocodiles 16% (9% in H1 2022).

The revenue performance for the Group was largely due to the significant contributions from Eureka Gold mine, coupled with the carry forward of skin sales from 2022.

The Group recorded a reduced EBITDA of US$10,988,257 for the six months (US$17,243,052 in H1 2022), impacted by an increase in operating costs.

A reduction of 15% was recognised on net interest expense for the Group at US$3,668,641 (US$4,328,396 in H1 2022), owing to restructuring of borrowings.

Profit before tax for the Group was recorded at US$7,532,200 for the six months compared to US$15,653,096 recorded in H1 2022.

The Group generated cash amounting to US$12,878,727 (US$3,737,742 in H1 2022) from operating activities for the year. The increase in cash generated was mainly due to improved revenues and efficiencies.

Dallaglio Financials

Dallaglio recorded a profit before tax of US$5,247,015 down from a prior year profit of US$12,902,577 of the same period in 2022.

A turnover of US$62,659,854 was achieved (US$51,718,639 H1 2022), which is a 21% increase. The incremental revenue was achieved on the strength of increased output and the effect of firmer gold price during the first half of 2023.

The Mines recorded an EBITDA of US$11,657,228 for the period under review (US$19,931,125 H1 2022). The decrease was mainly because of higher operating costs driven by inflationary pressures and higher stripping activity particularly at Pickstone Peerless.

A reduction of 27% was recorded on net interest expense for the unit at US$1,844,012 (US$2,526,351 H1 2022), largely attributable to restructuring of borrowings in H1 of 2023.

Cash generated from operations of US$ 10,337,533 (US$ 983,013 H1 2022) was recorded. The significant improvement was attributable to efficiencies achieved in working capital management in the first half of the year compared to the same period in 2022.

Nile Crocodile Financials

Revenue for the crocodile business for the six months to 30 June 2023 increased by 128% in comparison to same period in prior year, as a result of 10,000 skins sold from harvests carried over from prior year and a 16% improvement in average realisation per skin. Global and domestic inflationary pressures continued to impact negatively, resulting in an 11% increase in operating costs compared to prior year.

The significant devaluation of the Zimbabwean dollar during the second quarter of the year resulted in the operating unit incurring half year exchange losses of US$985,425 compared to exchange gains of US$1,839,995 in prior year when the operating unit benefited from significant Zimbabwean dollar denominated loans.

Consequently, a 77% improvement in EBITDA was recorded to a loss of US$627,644 in the current year from a loss of US$2,695,413 in the prior year.

A reduced biological asset valuation gain of US$5,810,141 (fair value gain of US$8,442,934 in H1 2022), was recorded due to the write down in value of prior years’ stock skins being sold at discounted prices. Resultantly, a profit before taxation of US$2,792,352 was achieved, compared to US$2,917,924 recorded same period last year.

The crocodile operation generated US$2,489,629 in cash from operating activities for the six months period under review (US$2,219,437 generated H1 2022), benefiting from the improved revenues.

Sustainability and Good Husbandry Practices

Good corporate governance remains key for the Group to achieve and maintain world class standards. In addition, the Group ensures strict adherence to requisite international animal welfare norms as well as compliance with environmental, mining and sustainability obligations.

The three crocodile farms remain compliant with the International Crocodilian Farmers Association (ICFA) standards adopted by the ICFA (1001:2002). The mines hold valid Environmental Impact Assessment (EIA) Certificates.

Surrounding community sustainability activities are of paramount importance to the Group, as envisaged by the various programs undertaken during the six months under review. These activities are ongoing, covering a wide spectrum for all the communities concerned.


An area of key focus is operationalising Pickstone Peerless underground mining. The first phase of the project was completed in August 2023, and commercial production has started. This is poised to contribute significantly to the Group’s revenue and profits, going forward.

For the second year running, Eureka mine continues to deliver robust performance, contributing significantly to volume growth and profitability. Various operations and cost optimisation initiatives are in progress to further consolidate this growth.

The crocodile operation continues with its initiatives to produce high quality skins that are consistent with premium market expectations, The business has successfully concluded new contract negotiations with customers that ensure the future viability of the business. The exotic skins luxury market remains extremely resilient in the current global economic environment, and the operation is well positioned to remain a significant player in this value chain.

The Group is on a drive to reduce borrowings and the associated interest charges to sustainable levels and to improve profitability.

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.


The Board has pleasure in declaring an interim dividend of 0.19 US cents per share payable in respect of all ordinary shares of the Company. The dividend will be paid to all the shareholders of the Company registered at the close of business on the 20th of October 2023.

The payment of the dividend will take place on or around the 3rd of November 2023. The shares of the Company will be traded cum-dividend on the Victoria Falls Stock Exchange up to the market day of the 17th of October 2023 and an ex-dividend from the 18th of October 2023.


I thank my fellow Board members, Management and staff for their hard work, dedication and commitment towards a successful year thus far. The Group will continue to achieve positive milestones as the year draws to a close.

My profound gratitude is further extended to our suppliers, customers and other various stakeholders for their continued support and confidence in the Group.

TN Sibanda
20 September, 2023

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Padenga Holdings Limited (PHL.vx)

Share price: 18.11 US cents (0.11 | 0.61% – 12/04/24)

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