By Nigel Pfunde
HARARE – Mutapa Investment Fund chief executive Dr John Mangudya has commended and praised Mutapa Gold Resources for its sterling performance after the gold mining division declared its maiden dividend of US$35 million to shareholders, with its chief executive Patrick Maseva-Shayawabaya further projecting increased production, reports Express Mail Zim.
Dr Mangudya expressed strong confidence in the company’s prospects, describing the payout as a gateway to robust operational results.
“We are very pleased by the performance of Mutapa Gold Resources, achieving a profit of US$70 million and declaring a dividend of US$35 million in total. It’s very commendable, so we are very happy,” Mangudya said.
The dividend, representing half of the company’s US$70 million after-tax profit recorded for the nine months ending December 31, 2025, was distributed on Thursday following board approval.
The bulk of the payout flowed to its parent entity, the Mutapa Investment Fund (MIF), which received US$22,050,000. Other beneficiaries included CBZ Bank, the National Venture Capital Company of Zimbabwe, the Public Service Pension Fund, the Insurance and Pension Commission, and the Deposit Protection Corporation.
The strong financial performance was driven by robust operational results and favourable international gold prices, which were however bearish.
Dr Mangudya said the performance precursor of greater returns to come.
“Shareholders invest money to make money. Delivery is ultimately about return on investment,” Maseva-Shayawabaya stated.
“I am absolutely delighted that we have been able to declare a dividend to shareholders. It is my hope that this is the first of many times when we will be declaring dividends,” he added.
The announcement comes as Mutapa Gold Resources embarks on an ambitious expansion drive, targeting a monthly gold output of 570 kilograms within the next three years, up from current production levels of approximately 300 kilograms per month. The company achieved a record monthly production of 340 kilograms in March 2026, signaling early gains from ongoing efficiency and development initiatives.
“Through certain mine expansion initiatives, we are projecting to produce 570kg from 2028,” said Ernest Denhere, Mutapa’s deputy chief investment officer, during a presentation outlining the company’s medium-term strategy.
The growth outlook will be anchored on asset optimisation and increased output from key operations, particularly the Freda Rebecca Mine, which contributes about 70% of Mutapa’s total production and produced 2.2 tonnes of gold in 2025.
The company is advancing a US$152 million project at Shamva Hill to develop a new open-pit mine and processing plant, which is expected to lift Shamva’s monthly output from 66 kilograms to 200 kilograms. Local banks have pledged up to US$90 million toward the project. At Jena Mine, described by Maseva-Shayawabaya as a “rough diamond,” output has risen from 30 to 40 kilograms per month following a US$2 million intervention, with management seeing a clear path to 100 kilograms per month.
The company is also pursuing an aggressive exploration campaign, having allocated more than US$12 million for drilling programs in 2026 across its gold assets, with 46,000 metres of drilling completed in the past year and 81,000 metres planned. The goal is to extend the operating life of its mines by approximately 10 years.
Mutapa Gold Resources was established in early 2026 following the unbundling of Kuvimba Mining House into five specialised commodity-focused entities: Mutapa Gold Resources, Mutapa Base Metals, Mutapa Energy Minerals, Mutapa Platinum aGroup, and Mutapa Frontier. The restructuring was designed to sharpen operational focus, improve governance, and unlock value across Zimbabwe’s mineral resources.
The company produced 3,266 kilograms of gold over the 12 months to March 2026, down from 3,600 kilograms a year earlier, due to lower grades at Freda Rebecca and Shamva mines. The average head grade across operations fell from 1.62 grams per tonne in 2024 to 1.36 grams per tonne by March 2026.
Freda Rebecca, currently the group’s flagship operation, has only four years of remaining mine life below the company’s ten-year threshold giving need to the urgency of the exploration and expansion programmes. However, Maseva-Shayawabaya remained optimistic about the company’s trajectory, saying that once the Shamva plant is operational, freed-up capacity at Freda could lift its production to 270 kilograms per month.
Looking ahead, the company forecasts gold production of 3,400 kilograms in the calendar year 2026, supported by higher grades, improved recoveries and increased milling throughput. At current gold prices of around US$4,100 per ounce, revenue is projected to reach approximately US$500 million, with profit before tax of about US$200 million.
“If we hit 570 kilograms per month within three years, today’s US$35 million dividend will pale in significance compared to what we pay in 2028,” Maseva-Shayawabaya told shareholders.
Express Mail Zim