The operating environment was dynamic during the period, with regulatory policy changes ushering in a new currency. On the global front, geopolitical tensions, high interest rates and natural disasters hamstrung growth in most major economies. Notwithstanding, Dallaglio recorded growth in output driven by improved ore grades at Eureka mine in addition to better recovery and higher plant throughput at Pickstone mine. The newly commissioned Pickstone Underground Project Phase 1 contributed 15% of the Group’s gold production in the period under review. Gold sales for the period firmed 25% to 1,351kg versus 1,080kg recorded in 1H23. The business also benefitted from strong gold prices as the metal repeatedly broke price records during the period. Consequently, Dallaglio recorded a 40% increase in turnover, with EBITDA for the unit growing by 98%. On the other hand, Padenga Agribusiness recorded 20% decline in skin harvest volumes at 16,973 skins from 21,280 in the prior period. Consequently, skin sales fell 22% to 14,627 from 18,709. However, the improved skin quality realised at the end of 2023 sustained into the period, driving skin sales revenue up 2% y/y. However, PBT for the unit eased owing to a 66% decrease in biological fair value gain in the period. Overall, the Group recorded revenue of US$99.24mn for the period, a 33.35% increase from the US$74.42mn recorded in the prior comparative period driven by positive performance from the gold mines as well as bullish gold prices. The Dallaglio business unit contributed 88% to total revenue compared to 84% registered in 1H23, with Padenga Agribusiness making up the difference. The Group’s enhanced operational performance resulted in a 110.33% upsurge in EBITDA from US$10.99mn in 1H23 to US$23.11mn in 1H24, with EBITDA margin firming from 14.77% to 23.29%. The Group increased borrowings to finance the development of its Pickstone underground operations and working capital for the crocodile farming operations. Therefore, net interest expense increased to US$5.28mn from US$3.67mn. The Group closed the period under review with a PAT of US$9.25mn, a 73% gain from the US$5.34mn recorded in 1H23. Cash generated from operating activities amounted to US$21.02mn compared to US$12.88mn recorded in the prior year on the back of improved revenues and more stringent working capital management. The Board declared an interim dividend of USc0.40 per share.
