The group made the announcement at its virtual annual general meeting (AGM) on Tuesday, which was the first online AGM held in
This follows the
According to the group, the mining operations will now be incorporated in its financials for the FY20.
Market watchers say the deal will be fruitful for the crocodile breeder as gold is a safe investment option on the back of its foreign currency generation capacity.
Gold is the largest foreign currency earner for
Brokerage firm,
"Total revenues for
EBITDA margin is expected to increase to 31,5 percent from 24,2 percent as a result of the jump in revenues caused by carry over skins from 2019 and the consolidation of the gold operations.
Despite the Covid-19 pandemic, which caused economies to experience a meltdown, gold sales during the first quarter of the year 2020 remained stable although there were also some disruptions to operations as businesses implemented social distancing and lockdown.
Prices of gold are projected to rise to
As such, Dallaglio is expected to make a significant revenue contribution to
"Policies pertaining to foreign currency retention levels significantly impact operations for the company and its mining subsidiary."
Government recently reviewed retention levels for gold miners to 70 percent from 55 percent with the remainder liquidated at the interbank market at the prevailing rate.
Dallaglio was incorporated in
The group also owns
Overall, the group anticipates a good year also on enhanced skins production from its
The group projects to sell 55 000 premium quality skins for FY20, a volume increase driven by carry-over skins from the prior year.
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