Mutapa Gold declares US$35m maiden dividend after strong profit

Mutapa Gold declares US$35m maiden dividend after strong profit

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State-owned miner Mutapa Gold Resources has declared its first-ever dividend, paying shareholders US$35 million after posting a US$70 million profit after tax for the nine months to 31 December 2025, supported by higher gold prices and tighter cost controls.

The dividend, equal to half of the reported after-tax profit, was announced and paid on Thursday in Harare. Mutapa Gold was carved out of the restructured Kuvimba Mining House in December last year and is the gold arm of the Mutapa Investment Fund, Zimbabwe’s sovereign wealth fund.

Chief executive Patrick Maseva-Shayawabaya said the payout signalled progress in the company’s turnaround plans. “What the board did was declare a dividend of US$35 million — half of the US$70 million we made as profit after tax — and that dividend has been paid,” he told stakeholders. “I am absolutely delighted that we have been able to declare a dividend. It is my hope that this is the first of many times.”

He attributed the performance to favourable market conditions and disciplined spending. “The gold price was high, so cash generation was very, very good, while our costs were kept under control,” Mr Maseva-Shayawabaya said.

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Mutapa Investment Fund chief executive Dr John Mangudya described the dividend as a milestone for the reorganised business and credited the restructuring of the former Kuvimba group. “Declaring a dividend of US$35 million in total is very commendable, so we are very happy with the board and management,” Dr Mangudya said. “These are some of the fruits being realised after the restructuring of the former Kuvimba Group of Companies. We are focusing on efficiency, profitability and obviously shareholder value, which is reflected through the dividend.”

The Mutapa Investment Fund, as the company’s largest shareholder, will receive US$22.5 million. Other beneficiaries include Datavest Nominees (US$4.375 million), the National Venture Capital Company of Zimbabwe (US$2.625 million), the Public Service Pension Fund (US$2.45 million), and the Insurance and Pension Commission and the Deposit Protection Corporation (US$1.75 million each).

In its nine-month trading update, Mutapa Gold reported revenue of US$271 million and earnings before interest, tax, depreciation and amortisation of US$126 million, on production of 2,354 kilogrammes of gold. The company also recorded a further US$144 million in revenue in the quarter to March, with realised prices averaging US$4,817 an ounce as bullion continued to rally during that period.

For communities in Mashonaland Central, the company’s footprint includes Freda Rebecca and Shamva mines. Mutapa Gold said it operates five mining locations nationally — Freda Rebecca and Shamva in Mashonaland Central, Jena in the Midlands, Elvington in Mashonaland West, and a cluster of Kwekwe assets under care and maintenance — and employs about 4,100 people directly and indirectly.

Looking ahead, Mr Maseva-Shayawabaya said the miner is targeting production of 3,400 kilogrammes (about 110,000 ounces) in the current year, with revenue forecast at around US$500 million and profit before tax of about US$200 million at prevailing prices. He warned, however, that a recent weakening in gold prices could affect those projections. “The bearish gold market of late is a key downside risk to our revenue and margins,” he said, adding that the company would focus on controllable factors such as costs, mining practices and plant efficiency.

A major plank of the growth plan is a US$152 million expansion at Shamva, expected to start in August. The project is intended to enable the mine to process its own ore and to roughly triple output by 2028. The company said a first tranche of US$75 million has been secured from a syndicate of four local banks, with additional financing still under negotiation.

Mr Maseva-Shayawabaya suggested that if prices remain supportive and expansion plans are achieved, shareholders could see larger returns in future. “The dividend we paid today,” he said, “will fall into insignificance compared to what we pay in 2029.”

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