GOLD output at the Victoria Falls Stock Exchange-listed Caledonia Mining Corporation stood at 55 244 ounces in nine months to September this year, as the group’s investments in Blanket Mine — its flagship operation — bear fruits.
The firm has invested heavily in Blanket over the last seven years, including investment this year to construct a new tailings storage facility which is expected to have a life of at least 15 years.
In a shareholder update, Caledonia chief executive officer Mark Learmonth said Blanket was performing well, setting a new quarterly production record. “I look forward to achieving our guidance of between 75 000 and 80 000 ounces of gold for 2023,” he said.
“We have invested heavily in Blanket over the last seven years, including investment this year to construct a new tailings storage facility which is expected to have a life of at least 15 years, based on the current production profile, and will support production well into the future.”
Learmonth added: “The recent encouraging drill results at Blanket 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 Blanket.
“Blanket continues to provide a solid foundation for the company, providing us with a platform for our other growth projects in Zimbabwe.”
Quarterly gold production of 21 772 ounces was a new quarterly record for Blanket mine, according to Learmonth.
This represented a 3% increase on the 21 120 ounces produced in the corresponding quarter of 2022.
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As such, Caledonia reiterated its gold production guidance for 2023 of between 75 000 and 80 000 ounces.
The mining firm also owns Bilboes oxide operation, which was, however, returned to care and maintenance with effect from October 1, 2023 due to lack of confidence that the mine can operate profitably.
During the second quarter, the company commenced the direct sale of gold to an end refiner outside Zimbabwe.
This arrangement is a big milestone for Caledonia and further demonstrated the pragmatic approach of the Zimbabwe authorities to resolve commercial issues facing gold producers, the company said
Gross revenues dropped by 0,2% to US$37 million in the second quarter of this year due to the costs of waste-stripping at the Bilboes oxide operation.
In the same period last year, revenues stood at US$37,09 million.
Earnings before interests, taxes, depreciation and amortisation, excluding asset impairments, depreciation and net foreign exchange gains and losses, stood at US$10,5 million.
On-mine cost per ounce for the second quarter of US$1 084 included the costs of the Bilboes oxide operation.
At Blanket, the on-mine cost per ounce was US$915 from US$692 recorded in the same period last year.
