The operating environment remained challenging characterized by a depreciating local currency and increasing inflation despite global inflation slowing down. Regardless, Dallaglio remained one of the top three gold producers in the country. Gold sales in HY23 closed the period at 1,080kgs versus 933kgs recorded in HY22. The volume growth of 16% was largely driven by increased plant throughput at Eureka mine. Consequently, a turnover of US$62.66mn was achieved under the mining business compared to US$51.72mn recorded in HY22, translating to an uptick of 21%. The positive performance was on the back of increased output aided by firmer gold prices. EBITDA for the mining business closed the period under review at US$11.66mn compared to US$19.93mn registered in HY22. The decrease was mainly due to higher operating costs driven by inflationary pressures and higher stripping activity particularly at Pickstone Peerless. The business line generated cash amount of US$10.34mn, a significant improvement compared to HY22 value of US$0.98mn. This was attributed to efficiencies achieved in working capital management. The Nile crocodile operations recorded skin harvest volumes of 21,280 during the first half of 2023, a 90% increase from the 11,217 recorded in HY22. Supporting this growth was a harvest of 10,000 premium skins carried over from 2022. Skin sales in HY23 at 18,709 were 52% above the 12,321 skins sold for the same period last year. The production season was extended to the end of February annually to incorporate the full summer period, and this is expected to contribute towards finishing skins to the increased quality standards demanded by the market. Resultantly, the business line registered a revenue uptick of 128% y/y. The increase in turnover was also supported by a 16% improvement in average realization per skin. Global and domestic inflationary pressures continued to impact negatively resulting in an 11% increase in operating costs in HY23 compared to same comparable period prior year. The operating unit also suffered exchange losses of US$0.98mn emanating from the significant devaluation of the ZWL during the second quarter of the year. Regardless, a 77% improvement in EBITDA was recorded to a loss of US$0.63mn in HY23 from a loss of US$2.70mn in the prior year. The crocodile operation generated US$2.49mn in cash from operating activities in the period under review. In aggregate, the Group recorded revenue of US$74.42mn for the six months under review. This was a 31% increase over the US$56.87mn recorded in the prior period. The Dallaglio business unit contributed 84% to total revenue compared to 91% registered in the previous comparable period, while the Nile Crocodiles business unit contributed 16% against 9% recorded same period prior year. EBITDA for the Group reduced from US$17.24mn in HY22 to US$10.99mn in HY23 weighed down by an increase in operation costs. Resultantly, EBITDA margins tapered off from 30.32% in HY22 to 14.77% in HY23. A reduction of 15% was recognized on the net interest expense for the Group at US$3.67mn owing to restructuring of borrowings. PBT came in at US$7.53mn for the six months compared to US$15.65mn recorded in HY22. Padenga closed the period under review with a PAT of US$5.34mn. Cash generated from operating activities amounted to US$12.88mn compared to US$3.74mn recorded comparable period prior year. Padenga declared a dividend of USc0.19.
