BINDURA – State-owned mining giant Mutapa Gold Resources has launched a US$75 million local debt syndication drive to finance an aggressive expansion aimed at doubling gold production by 2028, as soaring bullion prices helped propel profits to US$138 million.

The debt mobilisation, being spearheaded through local financial institutions, forms part of a broader US$250 million capital raising strategy targeting mine expansion, exploration and beneficiation projects across the group’s operations.

Speaking during a visit of Parliament’s Public Accounts Committee to Freda Rebecca Gold Mine in Bindura on Monday, Mutapa Investment Fund deputy chief investment officer Ernest Denhere said the company was moving urgently to unlock funding for its ambitious production targets.

“Mutapa Gold Resources requires about US$250 million for the life of mine expansion, and we are currently working on a local debt syndication of US$75 million as a start,” Denhere said.

The funding push comes as the mining group seeks to ramp up production from the current average of about 300 kilogrammes per month to 570kg monthly by 2028.

“We are projecting to produce 570kgs from 2028 through certain mine expansion initiatives. Within Mutapa Gold Resources, Freda Rebecca accounts for about 70 percent of this total production,” he said.

The expansion programme follows a sharp improvement in the miner’s financial performance, driven largely by rising global gold prices and increased production efficiencies.

Chief executive officer Patrick Museva Shayawabaya also told parliament that annual revenue surged from US$138 million in the year to March 2024 to US$415 million in the year to March 2026, while profit before tax climbed to US$157 million. Net profit after tax rose to US$138 million over the same period.

“Financial performance was aided by an increase in gold price,” Shayawabaya said.

Officials said the capital programme would prioritise extending mine life, expanding geological exploration and upgrading processing infrastructure to improve efficiency and value addition.

“For 2026, a capital budget in excess of US$12 million has been allocated for exploration across Mutapa Gold Resources entities, aiming to achieve a life of mine of 10 years for each operation,” Denhere said.

He said beneficiation had become central to the company’s long-term strategy.

“Mutapa Gold Resources is committed to moving up the value chain by strengthening local processing, refining, and downstream linkages,” Denhere said.

The group’s key assets include Freda Rebecca, Jena, Shamva and Elvington mines.