Caledonia records 20pc jump in gold production

CALEDONIA Mining Corporation says gold output at the company’s Zimbabwean operation, Blanket Mine, jumped by 20 percent in the second quarter of this year to 20 773 ounces compared to the same prior year period.

In the same quarter last year, gold output at Blanket Mine totalled 17 436 ounces.

Caledonia is on record saying it remains on track to achieve targeted production at Blanket Mine of 74 000 to 78 000 ounces for 2024.

This comes as Caledonia noted significant increases in mineral resources and reserves estimates and an extension of Blanket Mine’s life based on reserves, judging from the strength of the ore bodies at the mine.

Caledonia’s updated mineral reserves and resources estimates, include a 106 percent increase in Blanket’s mineral reserves and a 63 percent increase in measured and indicated mineral resources pursuant to Canada’s National Instrument 43-101 and an increase in Blanket’s life of mine to 2034, based on the updated mineral reserves estimate.

Caledonia Mining Corporation chief executive officer, Mark Learmonth, said the company had a strong quarter, attributing the profitability to higher gold production, a rise in gold prices, and lower costs per ounce.

He also expressed confidence in meeting production and cost guidance for the year, as well as delivering returns to shareholders.

“This has been an excellent quarter, during which profitability benefited from higher gold production, a higher gold price and lower costs per ounce. With today’s results, we remain on track to achieve our production and cost guidance for the year.

“Caledonia remains well positioned to deliver continued returns to shareholders. I am very excited by the opportunity we have to evolve our business, which we believe will generate significant long term shareholder value,” said Mr Learmonth in the investor presentation for the quarter to June 30, 2024.

In the quarter under review, Caledonia proceeded with the single-phase development option for the Bilboes Sulphide Project based on the results of the Preliminary Economic Assessment (PEA).

The results of the Preliminary Economic Assessment (PEA) indicate production of 1,5 million ounces of gold over a 10-year life of mine at an all-in sustaining cost of $968 per ounce.

The project has the potential to almost triple Caledonia’s gold production to over 200 000 ounces per annum in combination with production from Blanket Mine.

Operationally in the period under review, Caledonia recorded a gross revenue of US$50, 1 million 35,4 percent ahead of US$37 million recorded in the second quarter of 2023.

The gross profit also saw a significant increase to US$22,9 million, up by 109,8 percent from the second quarter of 2023, this was attributable to higher gold revenue and lower production costs.

A dividend of 14 cents per share was paid for the first quarter of 2024 in April 2024 and second quarter’s dividend in July 2024.-herald