Victoria Falls Stock Exchange-listed entity Padenga Holdings Limited’s third-quarter performance was marred by tragedy after a fatal incident occurred at its Pickstone Peerless Mine, but the company still managed to deliver a strong operational showing.
Padenga Holdings Limited, which is engaged in the production and rearing of crocodiles and gold mining has released its third-quarter trading update revealing a mixed performance marred by a fatal incident at its Pickstone Peerless Mine.
On September 29, 2024, an employee succumbed to inhalation of noxious gas in the underground operations, ending the mine’s notable 740,085 fatality-free shifts milestone.
“Regrettably, a fatal incident occurred in our underground operations at Pickstone Peerless Mine on 29 September 2024, resulting in the death of an employee, due to inhalation of noxious gas,” said Company Secretary Andrew Lorimer.
“This tragic event significantly impacted the business safety metrics, as prior to this incident, the mine had achieved a notable milestone of 740,085 fatality-free shifts. Safety protocols have been revised and strict adherence will be enforced.”
Despite this tragic event, Padenga’s mining operations showed resilience. Dallaglio gold sales surged 22% to 2,025kgs, driven by increased mill feed grades and recoveries.
Average mill feed grades rose 6% to 1.51g/t, while milled tonnage increased due to the addition of a new mill at Pickstone Peerless Mine.
In agribusiness, skin harvest volumes grew 3% to 24,813, although sales declined 30% to 21,418 skins due to weakened market demand.
Padenga’s mining operations delivered strong results, with a 22% increase in Dallaglio gold sales. The company also saw a 6% rise in average mill feed grades and a 2 percentage point increase in plant recoveries.
The agribusiness segment experienced a 3% growth in skin harvest volumes. However, sales declined 30% due to softened market demand.
“The business recorded a 3% increase in skin harvest volumes for the nine months under review, compared to the prior period (24,813 vs 24,115).
“Skin quality and production volumes continue to be in line with set targets. Skin sales over the period of 21,418 skins were 30% below the 30,586 skins sold over the same period last year.
“Premium skin sales were in line with both prior year and targets set at the beginning of the year. However, total sales volume was negatively impacted by a decrease in uptake by other customers due to a weakening of this segment of the market relative to prior year.
“As previously reported, the annual rehabilitation of crocodile pens to improve skin quality was completed on schedule in the second quarter of the year,” the company said.
Looking ahead, Padenga said it anticipated favourable gold prices to continue into 2025. The company is focused on executing the Pickstone Peerless underground development ahead of plan and leveraging Eureka Mine’s consistent above-target production.
Padenga also aims to reduce borrowings, cut interest costs, and boost export proceeds. The group remains committed to producing high-quality skins and optimizing mining operations.
“Management remains committed to initiatives boosting ore grade, reducing operating costs, and improving recoveries,” said Lorimer.
