State-owned producer Mutapa Gold Resources has posted a rise in profitability, delivering a net profit after tax of $45 million for the third quarter ending 30 September 2026, a 57% jump compared to the $29 million reported in the same period last year.
The strong earnings performance was underpinned by a rally in global bullion prices alongside higher extraction volumes. Revenues for the three-month period expanded by 39% to reach $127 million, up from $91 million in Q3 FY2025.
Addressing stakeholders during the operational update, Chief Executive Officer Patrick Maseva-Shayawabaya attributed the financial surge directly to top-line volume growth and favorable spot market dynamics.
“Revenue amounted to US$127 million, 39% higher than for the same period last year due to the higher gold production and gold price realised,” Maseva-Shayawabaya stated.
The group’s performance over the first nine months of the financial year reflects a similar growth trajectory.
Cumulative profit after tax tripled to $156 million compared to $52 million during the corresponding nine months in FY2025, while total year-to-date revenues broke past $402 million.
Operating earnings followed suit, with third-quarter EBITDA climbing 58% to $67 million.
“EBITDA was US$67 million, 58% higher than in Q3 FY2025,” Maseva-Shayawabaya said, highlighting the miner’s operational leverage during the quarter.
Total gold produced and sold reached 30,116 ounces in the three months to September, up 14% from 26,405 ounces recorded a year earlier.
The production gain was achieved despite operational disruptions at the miner’s flagship Freda Rebecca Gold Mine, where Mill Number 1 was taken off-line for 23 days in August to complete a long-planned shell replacement.
Higher head grades of 1.50 g/t and improved processing recoveries of 86% supported by newly commissioned leach tanks at both Freda Rebecca and Jena Mines helped offset the 6% drop in overall ore tonnage milled.
At the same time, Mutapa Gold capitalised on historic precious metal prices, realizing an average sales price of $4,211 per ounce during the quarter, a 22% increase year-on-year.
Operating cash costs remained contained below $1,600 per ounce, though All-In Sustaining Costs (AISC) expanded 13% to $2,337 per ounce due to essential stay-in-business capital expenditure.
“Cash costs remained broadly stable below US$1,600 per oz indicating that operating costs were well controlled despite prevailing cost pressures,” Maseva-Shayawabaya noted.
“Cash generation during the quarter and nine months to September 2026 was strong in line with the solid production performance, high gold prices and effective operating cost management.”
The strong cash flow generation comes as Mutapa Gold embarks on a capital-intensive expansion phase.
On 1 October 2026, the group formally commenced implementation of its flagship $240 million Shamva Hill Project, aimed at scaling annual production from 25,000 ounces to approximately 80,000 ounces by late 2028.
Local banking syndicates have already expanded their debt facilities for the project to $160 million.
Looking ahead to the full-year close in December, management expects total gold output to comfortably beat its initial 110,000-ounce forecast.
However, Maseva-Shayawabaya signaled a conservative financial outlook for the final quarter as global price movements calibrate.
“Gold production is expected to exceed the previous forecast of 110,000 oz,” Maseva-Shayawabaya explained. “Financial performance is, however, expected to be in line with the previous forecast as the impact of the higher gold output will be offset by a lower gold price,” he said.
Following an interim dividend payout of $35 million earlier in the year, the company’s board will evaluate a final dividend declaration following the completion of the full financial year.