13th Nov 2013 14:49
LONDON (Alliance News) - Caledonia Mining Corporation swung into a pretax profit despite seeing declining revenues as gold prices remained low in the quarter ended September 30.
The mining company posted revenue of CAD16.6 million, down from CAD21.5 million in the previous year. The company swung into a pretax profit of CAD6.6 million from a pretax loss of CAD4.2 million. The previous years pretax loss was due to a non-cash, non-recurring expense of CAD12.1 million arising from the implementation of the of the Indigenisation and Empowerment Act in Zimbabwe which requires that Zimbabwean operations must be at least 51% owned by indigenous Zimbabweans.
Revenues were hurt by prevailing lower prices for gold, Caledonia said, although it was somewhat mitigated by lower costs.
In the third quarter the Blanket mine in Zimbabwe, in which Caledonia has a 49% interest, produced 12,042 ounces of Gold. This was down from 12,918 ounces in the previous year, but ahead of its target of 11,000 ounces. The company said that it believes the mine is on course to produce around 44,000 ounces in 2013.
Gold sales were at an average price of CAD1,330 per ounce of gold.
During the quarter an accident occurred at the Blanket Mine, resulting in one employee being fatally injured and two further employees being injured.
Shares in Caledonia were trading down 0.33 pence at 47.67 pence Wednesday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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