Caledonia Mining on Track to Meet 2024 Gold Production Goals
Caledonia Mining, listed on the AIM, has announced it is on course to meet its full-year production target of 74,000 to 78,000 ounces at its Blanket gold mine in Zimbabwe.
In the quarter ending June 30, the mine produced 20,773 ounces of gold, a significant increase from the 17,436 ounces produced in the same period in 2023. The on-mine cost for the quarter was reduced to $906 per ounce, down from $915 per ounce in the previous year.
Caledonia reported gross revenues of $50.1 million for the quarter, up from $37 million in Q2 2023. This increase is attributed to higher gold production and rising gold prices.
Gross profit surged by 109.8%, reaching $22.9 million, compared to $10.9 million in the same quarter of 2023, driven by increased revenue and lower production costs.
The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) — excluding depreciation and net foreign exchange gains and losses — also saw a rise, amounting to $22.5 million for the quarter, up from $9.6 million in Q2 2023.
Consolidated all-in sustaining costs (AISC) dropped by 7.7% to $1,253 per ounce, thanks to lower on-mine costs, despite higher sustaining capital expenditure and increased administrative expenses.
“This has been an excellent quarter, with profitability boosted by higher gold production, a higher gold price, and lower costs per ounce. We remain on track to achieve our production and cost guidance for the year,” said CEO Mark Learmonth.
During the quarter, Caledonia’s board approved the single-phase development of the Bilboes sulphide project in Zimbabwe, which has the potential to nearly triple the company’s gold production to over 200,000 ounces per year when combined with output from the Blanket mine.
The company is advancing a new feasibility study for the Bilboes project, with results expected in the first quarter of 2025.
“Caledonia remains well-positioned to deliver continued returns to shareholders. I am very excited by the opportunity we have to evolve our business, which we believe will generate significant long-term shareholder value,” Learmonth added.
