“These are some of the fruits being realised after the restructuring of the former Kuvimba Group of Companies.”

Mutapa Gold Resources has declared its first-ever dividend of US$35 million after posting a US$70 million profit for the nine months ended December 31, 2025, while simultaneously advancing plans to expand production through a US$152 million mining project financed partly by US$90 million raised from local banks.

The dividend, which represents 50% of after-tax earnings, marks the first shareholder payout since the restructuring of the former Kuvimba Mining House under the Mutapa Investment Fund (MIF).

Under the dividend distribution, MIF will receive US$22.05 million, representing 63% of the total payout. Other beneficiaries include CBZ Bank (US$4.38 million), the National Venture Capital Company of Zimbabwe (US$2.63 million), the Public Service Pension Fund (US$2.45 million), the Insurance and Pensions Commission (US$1.75 million) and the Deposit Protection Corporation (US$1.75 million).

Mutapa Gold generated revenue of US$271 million during the nine-month period and maintained a gross profit margin of 60%. For the 12 months to March 2026, the company produced 3,266 kilograms of gold, equivalent to 104,626 ounces.

Mutapa Investment Fund chief executive officer John Mangudya described the dividend declaration as evidence that the restructuring of the mining group is beginning to deliver results.

“Declaring a dividend of US$35 million in total is very commendable, so we are very happy with the board and management. These are some of the fruits being realised after the restructuring of the former Kuvimba Group of Companies,” he said.

Mangudya said the creation of specialised entities focusing on gold, base metals and energy resources was intended to improve efficiency, profitability and shareholder value.

Mutapa Gold chief executive officer Patrick Shayawabaya attributed the strong financial performance to robust cash generation, higher gold prices and cost discipline.

“This dividend is actually in respect of the nine months to December. Cash generation was very strong,” he said.

“The gold price was high, so cash generation was very, very good while our costs were kept under control.”

At the same time, the company is pursuing an ambitious expansion programme aimed at sustaining and increasing production as some of its mature assets approach the end of their mine lives.

Mutapa Gold, whose key assets include Freda Rebecca, Shamva and Jena mines, has secured approximately US$90 million from local banks to fund expansion projects. The funding will support the development of the US$152 million Shamva Hill open-pit project, which is expected to commence in August.

The project is designed to increase gold output at Shamva Mine from 66 kilograms to 200 kilograms per month and forms part of a broader strategy to replace declining reserves at Freda Rebecca, Zimbabwe’s largest gold producer.

Shayawabaya said the US$90 million raised locally would only cover part of the project's financing requirements, with the company continuing to explore offshore funding options.

“At the last count, we will be around US$90 million from local banks. The balance we will source elsewhere,” he said, while noting concerns over the high cost of local borrowing.

Buoyed by strong gold prices and anticipated production growth, Mutapa Gold expects output to rise to 110,000 ounces in the current financial year. The company projects revenue of US$500 million and pre-tax profit of US$200 million.