Blanket Mine on-mine cost guidance increases
LISTED gold mining entity, Caledonia Mining Corporation Plc, which owns gold producer Blanket Mine in Gwanda, has announced that on-mine cost guidance for 2024 at Blanket has increased due to higher labour and electricity costs.
According to the company’s results for the quarter and the nine months ended September 30, 2024, on-mine cost guidance has risen to between US$950 and US$1 050 per ounce.
“On-mine cost guidance for 2024 at Blanket has increased to between US$950 and US$1 050 per ounce from the previous guidance of US$870 to US$970 per ounce due to higher labour and electricity costs,” reads the statement.
Chief Executive Officer, Mr Mark Learmonth, noted that management is pursuing initiatives to achieve cost reductions in both of these areas.
“We continue to explore ways to reduce on-mine costs at Blanket — particularly the cost of electricity and labour where several initiatives are being implemented and further measures are under consideration,” he said.
As part of efforts to address electricity constraints that have affected the mining industry over the years, the company has constructed a 12MWac solar plant at a cost of approximately US$14 million to improve the quality and security of Blanket’s electricity supply and to reduce its environmental footprint.
The plant was commissioned in the third quarter of 2022 and provides approximately 25 percent of Blanket’s total daily electricity demand. The project, connected to the Blanket grid in November 2022, aligns with the Government’s strategy to boost renewable power production.
According to the company, upon completion of the sale, Caledonia will realise a profit on the US$14,3 million construction cost by selling the plant for US$22,35 million.
The company said completion of the sale will return capital to Caledonia at a key moment in the company’s growth trajectory.
The company noted that while the sale will generate an immediate profit, more importantly, they have identified an experienced partner in Cross Boundary Energy Holdings (CBE), which brings vast expertise in delivering and running renewable energy projects.
Caledonia Mining Corporation Plc is a gold producer focused on Zimbabwe, with its primary asset being a 64 percent interest in Blanket Mine.
The company is domiciled in Jersey with its primary listing on the NYSE and depositary interests in its shares admitted to trading on AIM.
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