Itai Mazire
Mutapa Gold Resources, the gold mining division of Zimbabwe’s sovereign wealth fund, has announced a maiden dividend of US$35 million to its shareholders, marking a major milestone for the recently restructured entity.
The payout represents half of the company’s US$70 million after-tax profit recorded for the nine months ending December 31, 2025, driven by strong operational performance and favourable international gold prices.
The dividend was distributed on Thursday following board approval, with the bulk of the payout flowing to its parent entity, the Mutapa Investment Fund (MIF).
Under the distribution structure, MIF received US$22,050,000, while CBZ Bank, the National Venture Capital Company of Zimbabwe, the Public Service Pension Fund, the Insurance and Pension Commission, and the Deposit Protection Corporation also received portions of the payout.
MIF Chief Executive Officer, Dr John Mangudya, hailed the milestone as a testament to the company’s performance and a precursor of greater returns to come.
“Shareholders invest money to make money. Delivery is ultimately about return on investment,” said Mutapa Gold Resources Board Chairperson David Maseva-Shayawabaya.
“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 that we will be declaring dividends,” he added.
The announcement comes as Mutapa Gold Resources embarks on an ambitious expansion drive, targeting 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, signalling early gains from ongoing efficiency and development initiatives.
“Through certain mine expansion initiatives, we are projecting to produce 570kg per month by 2028,” said Ernest Denhere, Mutapa’s Deputy Chief Investment Officer, during a presentation outlining the company’s medium-term strategy.
The growth strategy will be anchored on asset optimisation and increased output from key operations, particularly Freda Rebecca Mine, which contributes about 70 percent 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 increase Shamva’s monthly output from 66 kilograms to 200 kilograms. Local banks have pledged up to US$90 million towards the project.
At Jena Mine, described by Maseva-Shayawabaya as a “rough diamond”, output has risen from 30 kilograms 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 programme, having allocated more than US$12 million for drilling activities in 2026 across its gold assets. A total of 46,000 metres of drilling was completed in the past year, while 81,000 metres are planned. The objective 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 Group, 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 during 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 declined 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 10-year threshold, underscoring the urgency of its exploration and expansion programmes. However, Maseva-Shayawabaya remained optimistic about the company’s prospects, noting that once the Shamva plant becomes operational, the resulting spare capacity at Freda Rebecca could lift production to 270 kilograms per month.
Dr Mangudya expressed strong confidence in the company’s future.
“We are very pleased with the performance of Mutapa Gold Resources, which achieved a profit of US$70 million and declared a dividend of US$35 million. It is a commendable achievement, and we are very happy,” he said.
Looking ahead, the company forecasts gold production of 3,400 kilograms in the 2026 calendar year, 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 expected to be around US$200 million.
“If we achieve 570 kilograms per month within three years, today’s US$35 million dividend will pale in significance compared to what we could be paying out in 2028,” Maseva-Shayawabaya told shareholders.
