By: IOL

Gold is glittering for Zimbabwean crocodile skin supplier, Padenga Holdings, as luxury markets reel from global economic uncertainty and a growing shift to bullion as a store of value. 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 their highest levels. For the half year to the end of June, gold prices for Padenga closed at $3,264 per ounce compared to $2,402 per ounce at the beginning of the year. This represents a 36% increase over the period.

Padenga’s gold mining unit, Dallaglio, contributed 94% of the group’s revenues of $130.68 million, which was 38% stronger compared to the same period last year. This was after Dallaglio produced 1,292 kgs of gold in the first half of the year, a 7% increase attributable to stronger grades and higher plant recoveries. Half-year profits before tax for 2025 amounted to $41.31 million, up 204% compared to the prior period.

Padenga is additionally investing in capital projects to further ramp up bullion production. Phase 3 of the underground project at its Pickstone mine is progressing, and the company will embark on adding a pre-oxidation facility in the second half of the year to enhance overall plant recovery.

In contrast, the company is slowing down investment in its core crocodile farming business as demand slows down. Padenga, which supplies crocodile skins to international luxury brands, has reduced costs by scaling back its farms from three to two. Sales of crocodile skins slipped by 5% to 13,919 skins in the first half, and the company has discontinued operations at its Ume Crocodile Farm due to challenging market conditions. The slowdown is attributed to a significant downturn in the luxury industry, which is facing reduced consumer demand.