Despite a nightmare year in which the group’s sales took a significant downturn due to the Covid-19 pandemic, crocodile skin producer says it is positive on the outlook demand for its products.

Management expects demand for premium products to show an upward trajectory in the medium term.

“The demand for top quality defect-free skins remains steady and prices for these will hold.

“Luxury brands have bounced back after the early 2020 depression in retail sales and have increased their on-line sales to maintain market access,” said chairman Thembinkosi Sibanda in a Q1, 2021 trading update.

“The crocodile business is confident of moving the stock of skins that it has on hand as the mid/upper tier market returns.

“The good husbandry and sustainability standards achieved by the Farms will be meaningful in ensuring that skins produced continue to be sold into the premium markets and will confer a significant competitive advantage.

“The Nile Crocodile business will therefore continue to deliver good operating profits.”

With regards to the Zimbabwe Crocodile Operation, management reported that skin sales volumes were
down 29 percent compared to prior period (5,904 skins vs 8,286 skins).

“A single sales grading was conducted in March with the first-grade ratio being consistent with
budget,” said the chairman.

A total of 13,006 skins were harvested during Q1, and management is happy with the quality achieved

“The size and quality of the harvestable crop remaining in the pens at the end of the quarter was consistent with expectations to achieve the budgeted skin numbers by year-end,” added Sibanda.

Demand for crocodile meat in Europe remained subdued under the continued impact of the Covid-19 pandemic.

Resultantly, no export sales were achieved and 42 tons of export meat
was in freezers at the end of the period.

Padenga said local market sales implemented resulted in a volume 142 tons being sold during Q1 (16 tons FY20) leaving only the export
cuts in stock at the 31 March 2021.

At the United States Operation – Tallow Creek Ranch – skin volumes were down 72% compared to the prior period (3,614 vs.12,725).

“A majority of the skins sold during the period were carryover skins
from FY20.

These have all been sold now. The 2021 harvest in the quarter was 5,938 skins with a full year offtake of 12,752 skins anticipated.

The group’s gold mining subsidiary, Dallaglio Mining’s gold sales volumes for the first quarter ended 31 March 2021 decreased by 24% to 138 kgs from 183 kgs achieved same period last year, which was largely expected due to the just ended rainfall season.

Numbers-wise, Padenga’s revenue slid 31% below prior period.

“The first half of the financial year for the farming operations is largely a cost accumulation period with the greater portion of harvesting and turnover following during H2,” explained Sibanda.

Ore volumes were down 24 percent at Pickstone Peerless mine “as unusually heavy rains negatively impacted the mining activities.”

Total expenses for the period to March 2021 were 2% below prior year.