Padenga shelves new old asset acquisitions cites prohibitive market

Padenga Holdings, the parent company of Dallaglio Investments, has suspended its search for new gold assets, citing overheated valuations driven by a global surge in bullion prices.

Group chairman Thembinkosi Sibanda said sellers are now demanding unrealistic prices for mining claims, making acquisitions unattractive and forcing the company to focus on expanding existing operations instead.

"Although we haven't got one we can speak of today, there's always overpricing in this game at this point in time because everybody thinks gold is doing so well," Sibanda said. "It's not a good time to be in the market trying to purchase claims or anything like that because you're going to be asked to pay more than they're worth."

Gold prices have climbed sharply, surpassing US$5,000 per ounce in early 2026 after closing 2025 at US$4,332.59, compared to US$2,690.13 in 2024. The sustained rally has triggered a wave of speculative interest in Zimbabwe's mining sector, inflating the value of exploration assets and claims.

Padenga, which operates through Dallaglio Investments, owns the Eureka and Pickstone Peerless mines and has shifted its strategy toward strengthening these existing operations rather than pursuing external deals.

"So the strategy the CEO has outlined is to develop, further grow, and expand our existing operations," Sibanda said, adding that further capital investment would be directed at known resource bases.

The company fully acquired Dallaglio in 2025, completing a transformation from its original crocodile farming business into a major mining-focused group. Mining now contributes 94% of total turnover, up from 86% in 2024.

For the year ended December 2025, Padenga recorded a 26% rise in revenue to US$265.82 million and a 93.5% increase in profit after tax to US$70.7 million. The group has budgeted US$17 million for exploration in 2026, focusing on resource expansion within its current portfolio.

Despite pausing acquisitions, the company continues to invest heavily in its operations, including a US$15 million upgrade at Pickstone Peerless expected to boost output by 26%, and a pit redesign at Eureka projected to extend the mine's life to 2039 and add 15 tonnes of gold.

Chief Finance Officer Oliver Kamundimu previously said the company is still scouting for "correctly priced gold assets," indicating that future acquisitions remain possible if market conditions stabilise.

Padenga's gold portfolio now includes the producing Pickstone Peerless Mine near Chegutu, the Eureka Gold Mine in Guruve, and the Giant Gold Claims, which support ongoing exploration and expansion efforts. Gold production for the first quarter of 2026 rose 13% year-on-year to 697kg, reflecting stronger operational performance across its assets.