Gold business

JUST IN: The VFEX list to boost Padenga gold activity

The Chronicle

Business journalist

A DIVERSIFIED company, Padenga Holdings’ pivot to gold will be boosted by its listing on the Victoria Falls Stock Exchange (VFEX), particularly with respect to the higher incentive to retain exports, analysts said.

The emerging challenges and the weakness of its crocodile skin activities forced Padenga to strategically pivot towards gold and this development turned out to be positive, with the contribution of the gold subsidiary to the sales of the financial year 2020 becoming of more and more important.

According to Padenga’s results for fiscal 2020, Dallaglio (the group’s gold subsidiary) has accounted for more than half of total revenue since its full consolidation into the group last year. In the past year, Dallaglio’s revenue was $ 40.3 million, or 57% of total revenue at $ 71.3 million.

The higher export retention expected due to its switch to VFEX will further boost revenue, analysts at IH Securities say.

“The company’s overall revenues are expected to remain on a strong upward trend driven by the expansion of gold mining operations as well as higher forex retention once the migration to VFEX is complete.

“The proposed transaction to migrate the listing to the VFEX is mainly motivated by the need to benefit from the incentives articulated by the Ministry of Finance (and Economic Development) according to which companies listed on the VFEX will be entitled to higher retention rates of their additional exports.

“In addition, listing on VFEX enables Padenga to raise foreign currency capital from a larger investor base to pursue viable acquisitions in related export sectors.”

Padenga resumed trading on the VFEX on Monday and as expected, trading was on the rise.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *