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Caledonia gold production shoots up by 11%

Business
Gold

GOLD production at the Victoria Falls Stock Exchange-listed Caledonia Mining Corporation jumped 11% to 21 120 ounces in the third quarter of this year, the company said yesterday.

Last year in the same period, gold production stood at 18 965 ounces. Caledonia, which is also listed on the New York Stock Exchange and London Stock Exchange, operates Gwanda-based gold producer Blanket Mine.

“We are delighted that this quarter we have once again set a new production record at Blanket and for the last three quarters we have achieved our quarterly target ounces,” Caledonia chief operating officer Dana Roets, said in a statement.

“This has been an excellent year, the ramp-up in production towards our yearly target of 80 000 ounces has met our best estimate and, as a consequence, we are on track to hit the top end of our production guidance of between 73 000-80 000 ounces.”

Gold produced in the nine months to September 30, 2022 was 59 726 ounces, up 22% compared to the same period last year. Roets said they would continue to work on completing the transaction for Bilboes.

“In the meantime (we) will restart the oxide operations with the expectation that it will return to profit during the second quarter of 2023. Caledonia is optimistic of the geological prospectivity in Zimbabwe and continues to evaluate other investment opportunities in the country with our long-term vision to become a multi asset gold producer,” he said.

“This is an exciting time for the company, and we look forward to continuing to update shareholders of our progress.”

Last month, Caledonia announced that it had signed an agreement to purchase Bilboes Gold Limited, the holding company of a large, high-grade, open-pittable gold resource, for about US$53,3 million. Formerly owned by Anglo American Corporation, Bilboes is a large, high-grade gold deposit located about 75km north of Bulawayo. Bilboes Gold is owned by Toziyana Resources which controls 50% shareholding, Baker Steel Resources Trust (24%) and Infinite Treasure with 26% stake. Upon successful completion of the transaction, Victor Gapare, a prominent Zimbabwean mining entrepreneur, who controls Toziyana Resources, will be appointed executive director of Caledonia. During the first half of this year, Caledonia realised gross revenue of US$72,1 million, up 29% compared to the same period last year on the back of high gold production and firming prices.

Profit in the period under review stood at US$20,8 million, up 121% while production costs increased by 14% to US$28,9 million.

 

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