Published: 08 May 2025

Kuvimba Mining House (KMH) has announced a substantial US$54 million capital expenditure (Capex) for its gold cluster in the financial year to March 2026, as part of its ongoing efforts to enhance operational efficiency and maintain production levels across its gold mining operations. The group's gold cluster encompasses Freda Rebecca Gold Mine, Jena Mines, and Shamva Gold Mine.

This new investment follows a successful 2024-2025 financial year, in which KMH allocated US$18 million in Capex, largely generated from its operations. The company's gold cluster has demonstrated resilience, with a notable performance in production and revenue growth, despite facing operational challenges.

In a media briefing on Wednesday, KMH's Head of the Gold Cluster, Mr. Patrick Maseva-Shayawabaya, highlighted key areas of focus for the upcoming financial year. "For the year to March 2026, we have budgeted a total Capex of US$54 million, which includes the completion of the tailings storage facility (TSF) project, and the replacement of the existing, unreliable power line from Trojan to Freda," said Maseva-Shayawabaya.

He also pointed to plans to upgrade plant and equipment at the mines, aiming to replace outdated and unreliable machinery. Additionally, improvements in tank capacity at Freda Rebecca and Jena are expected to enhance recovery rates by increasing the residence time of the ore exposed to chemicals, thus boosting overall production efficiency.

While no major expansion projects are anticipated for the current financial year, Maseva-Shayawabaya suggested that improved ore grades and higher recovery rates could result in a slight uptick in production. However, the overall production forecast for the 2025-2026 financial year is expected to remain in line with the previous year's performance.

Looking back at the financial year ended March 2025, KMH's gold cluster posted a stellar performance, producing 3,605 kilograms of gold and generating nearly US$300 million in revenue. This achievement was largely attributed to the successful implementation of a hybrid operating model, which allowed for increased flexibility and efficiency as gold prices remained firm throughout the year.

"This was an excellent performance for the KMH gold cluster," said Maseva-Shayawabaya. "We are pleased with the results, especially considering the numerous challenges we faced. The success reflects the collective effort of our management teams, workers, and business partners, particularly under the hybrid model, where much of the work is carried out by contractors."

The surge in gold prices also helped the cluster to maximize revenue, with total earnings reaching just under US$300 million, up from US$205 million the previous year. Gross margins improved significantly, rising to 52% from 33% in the prior year, while earnings before interest, tax, depreciation, and amortization (EBITDA) climbed to US$104 million, compared to US$37 million in the previous year. Profit before tax also saw a substantial increase, reaching US$69 million, up from just US$1.4 million in the previous year.

With a robust plan for 2025-2026 and a focus on operational improvements, Kuvimba Mining House is poised to continue playing a key role in Zimbabwe's gold sector, contributing significantly to the country's economic growth.
- the herald

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