Mutapa Gold Resources Forecasts Higher Output After US$35m Dividend Payout

Mutapa Gold Resources (MGR) says it is targeting about US$500 million in revenue in 2026, as it rolls out ambitious production and profitability plans following the declaration of a US$35 million dividend to shareholders.

Speaking at the dividend announcement event last week, chief executive officer Patrick Shayawabaya said the state-owned gold producer is projecting output of 3,400 kilograms of gold, or about 110,000 ounces, over the course of the year.

“At the current gold price of about US$4,100 or thereabouts, our revenue will be about half a billion dollars, and the profit before tax is around US$200 million,” Shayawabaya said.

The upbeat outlook comes despite a difficult year for the company, during which gold output fell to 3,266 kilograms from 3,600 kilograms. The decline was mainly attributed to lower ore grades at its Freda Rebecca and Shamva operations.

Shayawabaya said the company expects a turnaround, driven by improved ore grades, higher gold recovery rates and increased processing volumes.

He acknowledged that weaker global gold prices could put pressure on earnings, but said management remains focused on improving operational efficiency to protect profitability.

The optimistic forecast was announced alongside the company’s first dividend payout since it was restructured under the Mutapa Investment Fund earlier this year.

The board approved a US$35 million dividend, representing half of the US$70 million profit after tax recorded for the nine months to December 2025.

MGR was formed following the restructuring of the former KMH Gold Cluster. It now operates mines at Freda Rebecca, Shamva, Jena, Elvington and Kwekwe, and holds about 52,000 hectares of mining claims and leases across Zimbabwe.

The company employs around 2,800 people directly and supports a further 1,300 jobs through contractors.

As part of its long-term expansion strategy, MGR is increasing exploration work to extend the lifespan of its mines.

The miner drilled 46,000 metres over the past year and plans to drill a further 81,000 metres by the end of 2026 in a bid to strengthen reserves and secure production for at least the next decade.

The miner is also pushing ahead with its flagship US$152 million Shamva Hill project, which will develop a new open-pit mine and processing plant expected to boost future production capacity.

More: ZimLive