31st Mar 2015 12:04
LONDON (Alliance News) - Caledonia Mining Corp Tuesday posted a rise in pretax profit for 2014 as lower impairment charges helped offset a decline in revenue in what it called "another challenging year."
Caledonia is a development and mining company focused on Southern Africa.
It posted a pretax profit of CAD13.2 million, up from CAD9.4 million a year before, as a decline in revenue to CAD59.1 million from CAD65.1 million was offset by lower impairment charges. In the previous year the company booked a CAD14.2 million impairment in relation to its Nama project in Zambia.
Caledonia said the year had been challenging due to the lower gold price and lower production at the Blanket Mine in Zimbabwe, which it has a 49% interest in.
Towards the end of 2014 the company set out a revised investment plan to put USD70 million into the Blanket Mine over the next seven years with the aim of doubling production and reducing costs. It said the implementation of this plan remains on track.
The company also cited signs of improvement in the commercial environment in Zimbabwe, noting that in the fourth quarter of 2014 the royalty rate payable to the Zimbabwe government fell to 5% of turnover from 7%.
Shares in Caledonia are untraded Tuesday afternoon. It last closed at 37.30 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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