Caledonia gold production on a high

VICTORIA Falls Stock Exchange (VFEX)-listed mining entity, Caledonia Mining Corporation Plc, reported Q1 2024 gold production of 17 050 ounces from Blanket Mine, a 6 percent increase from the same period in 2023, and benefiting from high gold prices.

The company also saw an increase in gold sales ounces of 17 percent to 18 450 ounces compared to 15 797 ounces in Q1 2023, and expects to continue meeting its 2024 production guidance of 74 000 to 78 000 ounces at Blanket Mine.

Ounces sold in Q1 2024 include 3 057 ounces of gold work in progress classified as inventory at the end of 2023.

Chief executive officer Mark Learmonth praised the solid start to this year and the investments made over the past seven years, while also announcing the company’s ambition to become a multi-asset, Zimbabwe-focused gold producer with an annual production level of over 250 000 ounces.

“I am pleased that 2024 production at Blanket has got off to a strong start with over 17 000 ounces produced in the quarter, which, considering we had eight fewer production days compared to Q1 2023, is an excellent result,” he noted.

“With the current high gold prices, it was good to see our gold sales ounces increase by 17 percent in Q1 2024 versus Q1 2023.

“Our significant investment in Blanket over the past seven years and completion of the Central Shaft has nearly doubled production, extended the mine life and allowed the restart of underground exploration in 2023. We continue to see Blanket as the solid foundation for growth as we pursue our strategy to become a multi-asset gold producer,” said Mr Learmonth.

The mining house has it on record that it is eyeing consolidating its strategy of becoming a multi-asset gold producer by acquiring several lucrative mining assets.

Over the years, the firm has been creating a solid base at becoming a multi-asset gold producer by making significant investments in operations.

For instance, in 2022, the resource group expanded its footprint by purchasing Motapa Mining Company UK Limited and signed a US$53,2 million agreement to buy Bilboes Gold Limited as part of its expansion drive.

Bilboes Gold is a gold mining entity that owns three major gold mines in Matabeleland North and was once ranked among the country’s 10 biggest gold producers.

It has, however, been under care and maintenance with effect from October.

Added to that, to be energy sufficient, in 2020 Caledonia announced that it was constructing a US$14 million 12,2 MWac solar power as part of efforts to address electricity constraints that have over the years affected the mining industry.-chronicle