Mutapa Gold posts 57% profit growth on strong gold prices
HARARE - Mutapa Gold Resources recorded a 57 percent increase in profit after tax during the third quarter of 2026, driven by higher gold prices, improved ore grades and stronger processing recoveries.
The Zimbabwe Stock Exchange-listed gold producer reported profit after tax of US$45 million for the quarter ended September 30, 2026, up from the comparable period last year.
Gold production and sales increased 14 percent to 30,116 ounces, compared to 26,405 ounces recorded during the same period in 2025.
The growth was achieved despite a six percent decline in ore milled to 713,000 tonnes after Mill No. 1 at Freda Rebecca Mine was temporarily taken offline for 23 days in August for a planned shell replacement.
Management attributed the production increase to improved head grades and stronger metallurgical performance.
Head grade improved by 14 percent to 1.50 grams per tonne from 1.32 grams per tonne, while recovery rates rose to 86 percent following the commissioning of additional leach tanks at Freda Rebecca and Jena mines.
The company reported one Lost Time Injury during the period and said it remains committed to its Zero Harm safety objective.
A buoyant international gold market also contributed significantly to the strong financial performance.
The average realised gold price increased by 22 percent to US$4,211 per ounce, compared to US$3,440 per ounce in the same period last year.
As a result, revenue rose 39 percent to US$127 million from US$91 million.
Gross profit climbed 55 percent to US$84 million, while EBITDA surged 58 percent to US$67 million.
Profit before tax increased by 80 percent to US$61 million despite a substantial rise in tax expenses linked to higher earnings.
Mutapa Gold said operational cost control remained strong during the quarter.
C1 cash costs remained stable at US$1,569 per ounce, while All-in Sustaining Costs increased by 13 percent to US$2,337 per ounce due mainly to increased sustaining capital expenditure.
The company said cash generation remained robust, supported by strong production and favourable bullion prices.
Year-to-date performance was even stronger.
For the nine months to September 2026, gold production increased 16 percent to 89,639 ounces, while revenue rose 63 percent to US$402 million.
EBITDA grew 133 percent to US$231 million, and profit after tax surged 200 percent to US$156 million.
The company also paid an interim dividend of US$35 million during the period.
Meanwhile, Mutapa Gold has commenced development of the US$49 million Shamva Hill Project, which is expected to increase annual group production from approximately 72,000 ounces to around 80,000 ounces by 2028.
The project, launched on October 1, 2026, is scheduled for completion by December 2028 and includes the development of a 2.4 million-tonne open-pit mine and processing plant.
Funding has been secured through an expanded local banking syndicate facility, which increased from US$48 million to US$86 million.
The company is also undertaking an expansion programme at Jena Mine aimed at increasing annual production from approximately 12,000 ounces to between 13,000 and 14,000 ounces from the second quarter of 2027.
Exploration activity has also accelerated, with approximately 88,000 metres of diamond drilling completed by the end of September against a target of 190,000 metres.
A resource upgrade at Freda Rebecca Mine is expected by January 2027.
Mutapa Gold maintained its production guidance of 119,000 ounces for the year ending December 2026.
Management expects full-year performance to remain broadly in line with previous guidance, although it cautioned that softer gold prices in the fourth quarter could partially offset gains from increased production.
The board said it will consider a final dividend declaration after year-end.
