MINER and crocodile farmer, Padenga Holdings Limited, expects its 2025 gold production to be in line with last year, albeit with stronger returns owing to better global prices for the yellow metal.
Over the one year to the first quarter of 2025, the price of gold per ounce has surged 40% to over US$3 300, on geopolitical tensions around the Russia/Ukraine war, the Palestine and Israel conflict and this year’s trade war between the United States and China.
In 2024, Padenga’s mining business was driven by a 12% increase in gold produced at its Eureka Mine to 1 811 kilogrammes (kgs), and a 29% rise in production to 827kgs from its Pickstone Mine, all from 2023.
The mines are under Dallaglio Investments (Private) Limited, fully acquired by Padenga during the first quarter of this year.
The performance of its mining business spurred on the group's revenue, which rose 43% to US$222,95 million from the prior year. The mining business contributed 86% of the revenue. The remainder came from the crocodile business.
“Phase 3 of the underground project at Pickstone is progressing well, with the planned date to establish hoisting from Level 10,5 targeted for December 2025,” Padenga said in its trading update for the first quarter ended March 31, 2025.
“At Eureka Mine, the main focus is on the first phase of exploration and evaluation drilling, which will inform feasibility of an underground operation.”
Padenga revealed that its management was currently evaluating the prospects of upgrading the gravity circuit at Eureka Mine for implementation by the end of the third quarter.
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“Dallaglio forecasts 2025 full-year production that is in line with the prior year. Gold price is expected to remain strong through 2025, with new record highs having been reached in the year so far,” Pandenga said.
Gold production during the quarter improved by 1,6% to 620kgs against 610kgs recorded over the first quarter of last year. Production metrics such as grade and recovery registered moderate improvements relative to last year’s first quarter.
“Gold sales in the three months to 31 March 2025 totalled 620kgs and were 18% lower than the same period last year. The volume reduction was due to a high gold inventory from 2023 production sold in Q1 2024,” Padenga said.
“Gold price remained on an upward trajectory, averaging US$2 860 per ounce compared to US$2 663 per ounce for Q4 2024. Year-on-year spot price is up 41% at the end of the quarter.”
Padenga said the pre-leach thickener installed at Eureka Mine was delivering positive results in terms of reduced reagent usage, water efficiency and gains in plant recovery.
“New mining equipment delivered to the site during the quarter will lead to more efficient mining going forward,” Padenga said.
“Eureka Mine recorded its strongest safety performance to date during the quarter under review, celebrating 764 lost-time-injury free days as at 26 March 2025.”
At the Pickstone underground mine, the grade attained for the quarter under review was in line with the forecast, which is positive and encouraging.
“Exploration diamond drilling progressed well at Pickstone, with 7 016 metres drilled against a forecast 3 979 metres. The results, which are now being assessed, will increase confidence in the resource and add to the life of mine,” Padenga added.
Regarding its crocodile business, its Nile crocodile operation recorded a 254% increase in skin harvest volumes against the prior comparative period of 32 732 vs 9 248, respectively.
“Sales of 6 495 skins in the first quarter were 13% below the 7 480 skins sold in the comparative period prior year,” Padenga said.
This was attributed to the annual rehabilitation of crocodile pen floors as part of measures to improve skin quality.
