Caledonia Mining posts strong Q2 results, expands operations

Caledonia Mining Corporation Plc has reported a stellar performance for the second quarter of 2024, driven by increased gold production and a higher gold price. The company’s CEO, Mark Learmonth, described the quarter as “excellent,” highlighting the positive impact on profitability.

Gross revenues surged to $50.1 million, a significant increase from $37 million in the same period last year. This translated into a gross profit of $22.9 million, a 109.8 percent jump compared to the previous year.

“With today’s results, we remain on track to achieve our production and cost guidance for the year,” Learmonth said.

A key highlight was the increased mineral resources and reserves at Blanket, the company’s flagship mine. Learmonth expressed delight at the extended mine life, now projected to surpass 2040. “A 10-year mine life, based on reserves, indicates the robustness of the orebodies at Blanket,” he stated.

Caledonia is also advancing its Bilboes Sulphide Project, with the board approving a single-phase development option. The project is anticipated to significantly boost gold production, potentially tripling the company’s output to over 200,000 ounces per annum when combined with Blanket.

The company has also declared a dividend of 14 cents per share for the second quarter, underscoring its commitment to shareholder returns.

Looking ahead, Caledonia is confident of meeting its production target of 74,000 to 78,000 ounces for 2024. The company is also progressing a feasibility study on the Bilboes Sulphide Project, expected to be completed in the first quarter of 2025.-ebsiness