12th May 2016 09:34
LONDON (Alliance News) - Caledonia Mining Corp PLC on Thursday said it expects 2016 to be a "transformational year" for the company and its 49% owned Blanket Mine in Zimbabwe, as it reported a small rise in gross profit for the first quarter of 2016.
Caledonia Mining said gross profit was USD3.9 million in the three months to end March, up from USD3.7 million in the comparative period a year before, on gold production of 10,822 ounces, up from 9,960 ounces.
The average realised gold price declined to USD1,166 per ounce from USD1,198 a year previously.
"The financial and operating results for the first quarter of 2016 were better than expected," said President and Chief Executive Officer Steve Curtis in a statement.
"Production, as previously reported, was marginally better than target; on-mine operating costs and All-in Sustaining Cost were lower than in the comparable quarter and reflect continued strict cost control and lower sustaining capital expenditure," Curtis added.
Caledonia is projecting an increase in production to around 50,000 ounces in 2016 from 42,800 ounces in 2015, which it expects to result in improved cash generation.
The company expects its financial position to begin to improve in the second half of the year when the Blanket mine resumes dividend payments, which will also result in the resumption of the repayment of the facilitation loans from Blanket's indigenous Zimbabwean shareholders, Caledonia said.
Shares in Caledonia were down 0.7% at 68.00 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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