During the period under review, Padenga’s mining business line, Dallaglio, became one of the top three gold producers nationally after registering gold sales of 1,961kgs. The exceptional growth of 101% from the 976kgs registered in FY22 was largely driven by the impact of the first full year of operations at Eureka gold mine. Resultantly, Dallaglio posted a strong performance, recording a profit before tax of US$12.93mn in the period under review, compared to a loss of US$4.34mn in the prior comparable period. Cash generated from operations amounted to US$15.75mn (US$10.11mn FY21) mainly due to the increased gold sales. Under Nile Crocodile Operations, a total of 34,117 skins were harvested in FY22, compared to 55,136 skins harvested prior year. The reduction in harvested skins was due to a necessary shift in the harvest season by providing additional time to allow for remedial actions implemented to positively impact skin quality. Consequently, total skin sales volumes were down 17% to 33,189 skins compared to 39,936 skins sold in prior year. Resultantly, revenue for the Zimbabwean crocodile business reduced by 7% in comparison to prior year. Global and domestic inflationary pressures impacted negatively on operating costs. Consequently, a 20% reduction in EBITDA to US$4.53mn was recorded compared to US$5.69 in prior year. The business recorded a biological asset fair valuation gain of US$2.69mn (loss of US$3.65mn in FY21) benefiting from higher average skin prices forecast in FY23 and an increased quantity of livestock on hand. Resultantly, a profit before taxation of US$1,94mn was achieved, improving from a loss before taxation incurred in prior year. Consequently, the Group recorded turnover of US$127.89mn in the period under review. This was 68% increase over the US$76.10mn recorded in prior year. The revenue contributions from the Group’s business units were as follows; Dallaglio 82% (66% in FY21), Zimbabwe crocodiles 18% (31% in FY21). The Group recorded an improved EBITDA of US$32.28mn for the year compared to US$14.17mn recorded in FY21. The Group realised a biological asset fair valuation gain of US$2.69mn mainly emanating from higher average skin prices forecast in FY23 and an increased quantity of livestock on hand at the end of the current year. A marginal reduction of 3% was recorded on interest expense for the Group at US$9.96mn largely attributable to restructuring of borrowings by the mining business. As a result of the revenue growth, cost containment measures and the swing from a loss to a gain in biological asset fair value, the Group realised a profit before taxation from continuing operations of US$13.89mn for the year compared to a loss before taxation of recorded in FY21. The Board therefore elected to exit its alligator operations in the United States. In July 2022, the Group concluded an Asset Purchase Agreement with an offshore equity group for the sale of the operating assets of the Alligator business. Padenga declared a full year dividend of US0.28cents per share payable to all ordinary shares of the Company.
