Caledonia records over US$107 million in revenue

Blanket mine headgear

Victoria Falls Stock Exchange listed gold-focused miner, Caledonia Mining Corporation recorded a US$107.7 million revenue during the nine months ended 30 September 2023. The revenue is in line with the prior year’s performance, the company results for the quarter and nine months ended September 30 2023 shows.

According to Caledonia CEO Mark Learmonth gold production at the company’s Gwanda-based gold mine, Blanket Mine was at 55 244 ounces during the nine months ended 30 September 2023. The Mine produced quarterly gold production of 21 772 ounces, a new quarterly record for the mine and an increase of three per cent on the 21 120 ounces produced in the corresponding quarter of 2022.

He said net debt at the end of the Quarter was at US$3.2 million compared to US$ 2.9 million realised in the previous quarter.

According to Learmonth Notwithstanding the very strong operating cash flow in the Quarter, net cash and cash equivalents decreased in the Quarter due to the negative cash flows at the Bilboes oxides mine and the continued high level of capital investment at Blanket, principally on a new tailings storage facility.

He said a dividend of 14 cents per share was paid in July 2023, and a further dividend at the same rate of 14 cents per share was paid in October 2023, being the 40th quarterly dividend paid by the Company since it began paying dividends in 2013.

Gross profit in the Quarter according to Learmonth was US$ 14.1 million and EBITDA1 of US$ 15.5 million, 2.5 percent lower than the US$15.9 million in the third quarter of 2022.

He said Consolidated on-mine cost per ounce for the Quarter was at US$928 compared to US$ 734 per ounce in the comparable Quarter of 2022. He said the increase was mainly due to the high cost per ounce at the Bilboes oxide mine, which has subsequently been placed on care and maintenance. On-mine costs at Blanket were US$817 per ounce, an 11.3 per cent increase from the comparative quarter with the increase being due to higher labour and electricity costs.

“Production at Blanket in the Quarter was excellent: Blanket is now operating as expected having achieved record gold production in the Quarter. Management is exploring initiatives to further improve mining efficiencies and manage operating costs.

See Also
James Mapfumo

“The Bilboes oxide mine has been a disappointment and as a result of operating losses incurred at Bilboes it has been returned to care and maintenance with effect from 1 October, from October onwards, the monthly holding cost of Bilboes is expected to be significantly reduced to approximately $200,000c per month. In due course, the remaining oxide material will be mined and processed alongside the sulphide ore. This outcome has no bearing on the viability of the much larger sulphide project which was the reason for acquiring Bilboes.

“As previously announced, encouraging results were received during the Quarter from the ongoing underground drilling program at Blanket which currently targets the Eroica ore body. Initial results indicate that the Eroica ore body has better grades and widths than expected. These results indicate that there is additional mineralisation that may, in due course, be accessed using the current infrastructure and which should further extend the life of mine. Blanket continues to provide a solid foundation for the Company, providing us with a platform for our other growth projects in Zimbabwe.

“We continue to work on a revised feasibility study for the sulphide project at Bilboes which will consider updated commercial assumptions and will inform the most judicious way to commercialise the project with the objective of providing the best returns for investors. I look forward to providing an update on our progress in due course.” Learmonth said.

Scroll To Top
error: Content is protected !!