en.Wedoany.com Reported - Dallaglio Investments, the investment platform of Padenga Holdings, has suspended the acquisition of new gold mining assets. The group's chairman warned that speculative frenzy triggered by record gold prices has led to overvalued mining rights, making acquisitions difficult to execute. The group will instead focus on organic growth of its existing operations.
Group Chairman Thembinkosi Sibanda stated at the annual general meeting held in the capital that unrealistic valuations proposed by sellers have forced the group to prioritize endogenous development. The chairman noted that although there are currently no specific targets under negotiation, market participants generally believe that strong gold prices have led to a clear risk of overpricing. "They expect gold mining assets to be overvalued. We have determined that now is not a good time to enter the market and attempt to purchase mining rights, as we would be asked to pay prices exceeding their value."
In early 2026, gold prices climbed above $5,000 per ounce, extending the rally from 2025 (which closed at $4,332.59 per ounce, a significant increase from $2,690.13 in 2024). This trend has attracted speculative capital into Zimbabwe's mining sector, driving up the value of mining rights and exploration assets.
Rather than pursuing overvalued targets, Padenga has shifted its focus to existing operations. Through Dallaglio Investments, it operates the Eureka and Pickstone Peerless gold mines. The chairman explained that management's strategy is to develop, strengthen, and expand existing assets. "We already understand the resource situation there; we just need more capital to continue development."
Padenga completed the full acquisition of Dallaglio in the first quarter of 2025, having initially acquired a 50.1% stake in 2019, followed by the purchase of the remaining 49.9% shares. Currently, mining operations account for 94% of the group's turnover, up from 86% in 2024, marking a complete transformation from its crocodile farming business. Financial data shows that for the year ended December 31, 2025, group revenue increased by 26% to $265.82 million, while after-tax profit nearly doubled year-on-year, rising 93.5% to $70.7 million. Padenga has allocated $17 million for its 2026 mining exploration budget, focusing on expanding existing mining rights rather than external acquisitions.
The decision to suspend acquisitions does not signal the group's exit from the gold sector. At the Pickstone Peerless mine, a $15 million investment is expected to increase production by 26%; a pit renovation project at the Eureka mine is projected to add 15 tonnes of gold and extend the mine's life to 2039. The group currently has a market capitalization of $1.04 billion, making it the second-largest listed company in Zimbabwe by market value.
Padenga stated that it may reconsider external acquisitions if market conditions normalize. Chief Financial Officer Oliver Kamundimu noted last month that the company is actively seeking "reasonably priced gold mining assets" in Zimbabwe. For now, however, financial discipline takes precedence over expansion strategy. Dallaglio Investments' gold portfolio includes the producing Pickstone Peerless mine near Chegutu, the Eureka gold mine in Guruve, and the Giant Gold Claims area with additional exploration and resource growth potential. Among these, Pickstone is the flagship operating mine, while Eureka has successfully resumed production after years of maintenance, positioning the company as one of Zimbabwe's leading large-scale gold producers.
Benefiting from improved asset performance, the group's gold production in the first quarter of 2026 increased by 13% year-on-year to 697 kilograms, compared to 618.9 kilograms in the same period last year, with both production and price factors driving strong performance.
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