Padenga Holdings says it expects its gold mining arm, Dallaglio Investments, to deliver a stronger performance for the rest of 2026, supported by firm gold prices and operational improvements at its Eureka and Pickstone mines.
Although overall gold output across the group has remained relatively steady, the company believes favourable market conditions will continue to support earnings.
Gold prices have been climbing amid rising investor appetite for safe-haven assets, ongoing global economic uncertainty, and sustained buying by central banks.
In its trading update for the quarter ending 31 March 2026, company secretary Andrew Lorimer said Dallaglio was positioned for solid results through year-end, helped by stable production and operational gains.
He noted that Eureka Mine has maintained consistent output, while Pickstone Mine has improved its ore hoisting performance.
Combined with the current strength in gold prices, these factors are expected to underpin a strong financial showing.
The company benefited significantly from the sharp rise in bullion prices during the quarter, with the average gold spot price reaching US$4,875 per ounce, compared with US$2,887 in the same period last year.
To enhance future production efficiency, Dallaglio is advancing several infrastructure upgrades.
At Eureka Mine, the Gravity Upgrade Project is expected to be commissioned in the second quarter of 2026.
Management says the project should improve recovery rates at the processing plant while lowering costs within the Carbon-In-Leach operations.
Padenga has also earmarked nearly US$17 million this year for exploration at Dallaglio as part of efforts to unlock and commercialise undeveloped mineral resources.
Additional improvements have been approved at Eureka, including upgrades to cyclone clusters aimed at increasing milling throughput and improving plant efficiency.
Gold production for Q1 2026 rose 13 percent to 696.7 kg, up from 618.9 kg in the corresponding period last year.
According to the company, the increase was largely due to improved mill feed grades at both mining operations.
It also reported progress on its renewable energy plans.
The Eureka solar project began generating power in April 2026 after completion of transmission line and connection work, with full 5MW output expected before the end of the second quarter.
At Pickstone Peerless Mine, exploration and development work will focus on growing reserves and informing future capital investment decisions. Planned drilling will target the Concession Hill ore body while also assessing mineral continuity beneath the existing Peerless open pit.
Outside mining, Padenga’s agricultural business is also expected to improve in the near to medium term, despite weaker market conditions.
Crocodile sales surged during the quarter, rising 172 percent to 17,667 units from 6,495 in the same period last year.
The increase was mainly driven by the sale of excess inventory carried over from the previous harvest following the company’s restructuring exercise.