Blanket Mine ups production

Caledonia Mining Corporation’s local unit, Blanket Mine’s gold production for the year to December 2020, reached a record annual production of 57,899 ounces, which was 4,9 percent above prior level.

According to the group, gold recoveries have improved following the completion of the upgrade to the oxygen plant in the year.

During the year under review, gross revenues rose 31,9 percent to US$100 million. Gross profit came in at US$46,6 million from US$31,1 million at a gross margin of 47 per cent compared to 41 percent in 2019.

Earnings before interest, tax, depreciation and amortisation (EBITDA), grew Caledonia Mining Corporation’s local unit, Blanket Mine’s gold production for the year to December 2020, reached a record annual production of 57,899 ounces, which was 4,9 percent above prior level 44,8 percent to US$43,3 million at a margin of 43 percent from 39 percent in the prior year.

Adjusted earnings per share of US204 cents was 40 percent above prior comparable year.

Net cash from operating activities of US$30,9 million was achieved million ahead of the US$18,1 million recorded in 2019.

Net cash and cash equivalents of US$19,1 million was recorded from US$8,9 million in the prior year. According to the group, cash position increased due to a US$13 million (gross) equity issue in the third quarter of 2020.

Total dividend paid was US33,5 cents per share, a 21,8 percent increase from 2019.

Caledonia chief executive Steve Curtis, indicated the performance was also driven by firming hold prices and the group is upbeat of further increased production for 2021 following completion of central shaft.

“Production in the year was 57,899 ounces, which was at the top end of the guidance range and was a new record for annual production.

“The robust operating performance was supported by a rising gold price and gross profit for the year was US$46,6 million – almost 50 per cent higher than 2019.

“Once Central Shaft is commissioned, we can start to expect further increases in production: guidance for 2021 is a range of 61,000 to 67,000 ounces while from 2022 onwards it is 80,000 ounces – 38 per cent higher than in 2020,” he said in a statement accompanying the annual performance update.

Curtis added Caledonia’s immediate strategic focus is to complete the Central Shaft project, which is expected to increase production, reduce operating costs and increase the flexibility to undertake further exploration and development, thereby safeguarding and enhancing Blanket’s long-term future.

The group will also conduct exploration activities at Glen Hume and Connemara North while evaluating further investment opportunities in the gold and precious metals sector in Zimbabwe and in other jurisdictions, with our long-term vision of becoming a mid-tier, multi-asset gold producer.

In December Caledonia announced that it entered into option agreements on two properties, Glen Hume and Connemara North, in the Gweru mining district in the Zimbabwe Midlands which has historically produced significant quantities of gold.

These options give the Caledonia the right to explore each property for periods of 15 and 18 months respectively and acquire the mining claims over them.
Said Curtis:“If our exploration is successful these properties will add further impetus to our growth.”-ebusinessweekly