Caledonia Mining Corp PLC on Friday said it reached record gold production in 2022, exceeding the top end of its guidance, while it expects 2023 production to perform similarly.
The Jersey-based gold producer whose primary asset is the Blanket mine in Zimbabwe said total 2022 gold production at Blanket exceeded the top end of company guidance to a record 80,775 ounces, up 20% from 67,476 ounces in 2021.
It said this meant it achieved its longstanding production target.
Gold production in the fourth quarter that ended December 31 was also up 13% to 21,049 ounces from 18,604 ounces a year earlier.
Looking ahead, it expects similar levels of gold production at Blanket of between 75,000 and 80,000 ounces in 2023, alongside 12,500 to 17,000 ounces at the Bilboes oxides project, taking group consolidated production to the range of 87,500 to 97,000 ounces.
On-mine cost per ounce across the group is forecast to be around USD900 to USD1,000. Breaking this down, the on-mine cost per ounce at Bilboes oxides is between USD1,200 to USD1,320, while it is between USD770 and USD850 at Blanket.
Gold was priced at just over USD1,900 an ounce on Friday.
“The on-mine cost of the small oxides project at Bilboes reflects the low grade of the oxide material. The oxides project is not expected to be representative of the much larger sulphide project at Bilboes in terms of grade, production levels or cost profile,” said Chief Executive Officer Mark Learmonth.
“Nevertheless, the oxides project is expected to contribute to the group’s cash generation whilst at the same time allowing us to pre-strip to the deeper sulphide material.”
Learmonth added regarding outlook: “Over the last 18 months the company has built an attractive portfolio of assets with the acquisitions of Bilboes, Motapa and Maligreen. Blanket will continue to serve as a solid foundation for this growth, as we look to progress our assets with our long-term goal of becoming a multi-asset gold producer.”
Shares in Caledonia Mining were up 0.5% to 1,166.00 pence each in London on Friday afternoon.
Source: lse
