Caledonia records 40% increase in gold production

VICTORIA Falls Stock-Exchange-listed Caledonia Mining Corporation Plc has set a new first quarter production record after reporting a 40% increase in gold production in the first three months of the year.

Caledonia operates Gwanda-based gold producer Blanket Mine, which has been on an aggressive expansion drive over the past five years.

According to the company’s first quarter report, gold production increased by 40% to 18 515 ounces, a record for any first quarter for the firm.

Last year in the same period, gold production stood at 13 197 ounces.

Caledonia chief executive Steve Curtis said he was delighted that during “this quarter we have set a new first quarter production record. 18 515 ounces is ahead of our expectations and reflects the increased capacity at Central Shaft.”

“The ramp-up in production towards our quarterly target of
20 000 ounces means that we are on track to meet our annual production target,” he said.

“As previously announced, very sadly during the quarter, a fatal accident resulted in the death of a Blanket employee. We always take the safety of our employees very seriously and I join my colleagues in expressing our sincere condolences to the family, friends and colleagues of the deceased.”

The company reiterated that gold production for 2022 is expected to be between 73 000 to 80 000 ounces.

During the year ended December 31, 2021, gross revenue at Caledonia rose by 21% to US$121 million after it reported its biggest gold output.

Gross profit for the year was US$54,1 million, 16% higher than 2020.

Cash generated from operations before working capital increased by 17% from US$42,4 million to US$49,6 million-newsday