en.Wedoany.com Reported - Mutapa Gold Resources Ltd (Mutapa) has announced a $35 million dividend payment, its first distribution to shareholders since the company's restructuring in January, with the majority of the proceeds going to its parent company, Mutapa Investment Fund.
The dividend amount corresponds to half of the $70 million after-tax profit for the nine months ending December 2025, and was paid after receiving board approval last week. The company has changed its fiscal year-end to December to align with the sovereign fund.
Chief Executive Officer Patrick Maseva-Shayawabaya stated at the company's inaugural briefing that shareholders invest to generate returns, and delivery ultimately comes down to return on investment, adding that the company is pleased this is the first of many dividends.
The $35 million dividend was distributed proportionally, with Mutapa Investment Fund receiving $22.05 million, CBZ Bank receiving $4.375 million, the National Venture Capital Company of Zimbabwe receiving $2.625 million, the Public Service Pension Fund receiving $2.45 million, and the Insurance and Pensions Commission and Deposit Protection Corporation each receiving $1.75 million.
The dividend was paid despite operational headwinds. In the 12 months ending March 2026, Mutapa produced a total of 3,266 kilograms (104,626 ounces) of gold from its three operating mines—Freda Rebecca, Shamva, and Jena—down from 3,600 kilograms in the same period last year, due to declining ore grades at the Freda and Shamva mines.
Revenue for the nine months ending December reached $271 million, with a gross margin of 60%. Revenue for the single quarter ending March 2026 was $144 million, but the margin narrowed to 34% in that quarter.
In terms of expansion, the company is advancing the Shamva Hill project, with an investment of $152 million, aimed at building a new open-pit mine and processing plant to increase Shamva's output from 66 kilograms per month to 200 kilograms. Local banks have committed up to $90 million in financing. At the Jena mine, following a $2 million intervention, monthly production has increased from 30 kilograms to 40 kilograms, and management believes monthly output could reach 100 kilograms. Freda Rebecca, currently producing 200 kilograms per month, has a remaining mine life of only four years, below the company's set threshold of 10 years. The company has completed 46,000 meters of drilling over the past year and plans to complete an additional 81,000 meters to extend reserves. Once Shamva stops shipping ore to Freda's plant, the freed-up capacity could increase Freda's monthly production to 270 kilograms.
For the 2026 calendar year, Mutapa forecasts production of 3,400 kilograms (110,000 ounces). At the current gold price of approximately $4,100 per ounce, revenue would be around $500 million, with pre-tax profit of about $200 million.
Maseva-Shayawabaya indicated that if the company reaches a monthly production of 570 kilograms within three years, today's $35 million dividend would pale in comparison to the dividend paid in 2028.
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