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Tuesday, September 27, 2022
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Caledonia In Record Quarterly Gold Production

Caledonia Mining Corporation has announced a record gold production of 20,091 ounces in the quarter ended 30 June, representing 20 percent increase from the 16,710 ounces reported during the same period last year.

Favorable production figures at its Blanket Mine culminated in gross revenue of $36.99 million, a 23.4 percent increase on the $29.98 million recorded in the second quarter (Q2) of 2021.

Gross profit of $17.9 million was recorded in the same period, a 28.8 percent increase on the $13.9 million achieved in Q2 2021.

Speaking on the announcement, Caledonia Chief Executive Officer, Mark Learmonth said the company is on course to meet target production of between 73-80,000 ounces of gold for this year.

“This has been a terrific quarter and, indeed, half year with second quarter production of just over 20,000 ounces which set a record for any quarter. The first half of 2022 exceeded our expectations and we have now achieved our quarterly production target. Excellent production, along with a higher gold price and good cost control, has contributed to a 321% increase in IFRS earnings per share and a 31% increase in net cash from operating activities over the comparable quarter in 2021.

“Our immediate strategic focus continues to be on Blanket and we are on track to meet our target production of between 73-80,000 ounces of gold for this year, with first-half production of 38,605 ounces of gold,” he said.

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In July, Caledonia signed an agreement to purchase Bilboes Gold Limited, the holding company of a large, high-grade, open-pittable gold resource located 75 km north of Bulawayo, Zimbabwe.

Speaking on this acquisition, Learmonth said; “The completion of the transaction is subject to several conditions, but once achieved we can prepare a feasibility study to identify the most judicious way to commercialize the project with regard to the availability of funding on acceptable terms. Caledonia also intends to re-start the oxides operation at Bilboes under a tribute arrangement before completion of the transaction with a view to creating a cash-generative operation within approximately six months.”

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