Gold glitters for Zimbabwean luxury crocodile skins supplier, Padenga

GOLD is glittering for Zimbabwean crocodile skin supplier, Padenga Holdings, as luxury markets reels from global economic uncertainty and a growing shift to bullion as a store of value.

- TAWANDA KAROMBO

WHILE the Zimbabwean company, Padenga Holdings, is sinking capital investment into its gold mining assets, it is slowing down investment in its crocodile farming business as demand losses pace.

(Supplied)

Padenga diversified into gold mining in 2019 through the acquisition of Zimbabwe gold mining operations. Analysts said at the time that the diversification represented an “unusual pairing” but is “value accretive” through enhancement of forex earnings potential.

Now, the company is reaping the benefits of that diversification, with gold prices spiking to highest levels. Spot gold prices traded above $3 700 (about R63 900) an ounce in early trade yesterday.

For the half year to end June, ‘old Prices closed $3 264 an ounce ‘or Padenga compared to $2 402 an ounce at the beginning of the year. This represents 36% increase over the period, with the upturn in the gold prices also complementing “sterling financial performance” at the company’s gold mining division, Dallaglio.

Padengas gold mining unit contributed 94% of the group's revenues of $130.68 million which was 38% stronger compared to same period last year.