Mutapa Gold Resources, a state-owned mining company, has launched a $75 million local debt issuance to finance an aggressive expansion aimed at doubling gold production by 2028, at a time when rising gold prices have boosted profits to $138 million.
The debt issuance, which is being coordinated through local financial institutions, is part of a broader $250 million capital-raising strategy aimed at expanding mines, exploration, and processing projects across the group.
During a visit by Parliament’s Public Accounts Committee to the Freda Rebecca gold mine in Bindura on Monday (11), the deputy director of investments at the Mutapa Investment Fund, Ernest Denhere, stated that the company is acting urgently to secure financing for its ambitious production goals.
“Mutapa Gold Resources needs about $250 million to extend the life of the mines, and we are currently working on a $75 million local debt issuance as a start,” Denhere said.
The financing plan comes as the mining group seeks to increase production from the current average of about 300 kilograms per month to 570 kilograms (kg) per month by 2028.
“We plan to produce 570 kg starting in 2028 through mine expansion initiatives. Within Mutapa Gold Resources, Freda Rebecca accounts for about 70% of this total production,” he noted.
The expansion program follows a marked improvement in the company’s financial performance, driven primarily by rising global gold prices and increased production efficiency.
CEO Patrick Museva Shayawabaya also told Parliament that annual revenue rose from $138 million in the fiscal year ending March 2024 to $415 million in the fiscal year ending March 2026, while pre-tax profit climbed to $157 million. Net income after taxes increased to $138 million over the same period.
“The financial performance was driven by the rise in the price of gold,” Shayawabaya said.
Officials said the investment program will prioritize extending the life of the mines, increasing geological exploration, and modernizing processing infrastructure to improve efficiency and create value.
“For 2026, a capital budget of over $12 million has been allocated for exploration across all Mutapa Gold Resources entities, with the goal of achieving a 10-year mine life for each operation,” said Denhere.
“The mining company is committed to moving up the value chain by strengthening local processing, refining, and downstream linkages,” said Denhere.
The group’s main assets include the Freda Rebecca, Jena, Shamva, and Elvington mines.
Source: ZimLive
