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Tuesday, November 29, 2022
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Caledonia In Record Annual Gold Production

Gold producer, Caledonia Mining Corporation has announced a record production of 67,476 ounces at its Gwanda subsidiary, Blanket mine for the year ended December 31, 2021.

The robust gold production corresponded with gross revenue of $121 million from 100 million recorded in 2020 and a gross profit of $54.1 million which is 16 percent higher than $46.7 million reported in the previous year.

Shareholders received a total dividend of 50 cents per share, a 49 per cent increase from 2020.

Speaking on the results, Caledonia CEO, Steve Curtis, said “Operationally, the last 12 months have marked a turning point for the business. The Central Shaft has been a huge project costing approximately $67 million, all funded through internal cashflow and I am delighted that it was commissioned in the first quarter of 2021.”

“Now that the Central Shaft is commissioned, we expect further increases in production: guidance for 2022 is a range of 73,000 to 80,000 ounces while from 2023 onwards it is 80,000 ounces3 – 38 per cent higher than in 2020.”

Curtis added that the company will install a solar field field to plug energy deficit reduce Blanket Mine’s carbon footprint.

“To improve the quality and security of Blanket’s electricity supply, minimise our environmental footprint and help create a more sustainable future for our business, Caledonia is constructing the first phase of a 12 MWac solar plant that will provide approximately 27 per cent of the average daily electricity demand at Blanket Mine. This project, which is expected to yield a modest return to shareholders, is expected to be completed in mid-2022.”

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During the year, Caledonia acquired mining claims at Maligreen, Midlands province which is estimated to host a NI 43-101 compliant inferred mineral resource of approximately 940,000 ounces of gold in 15.6 million tonnes at a grade of 1.88g/t.

“Our immediate focus on this asset is to improve the confidence level of the existing resource base and we are currently re-assaying historic drill cores,” Curtis said.

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