12th May 2020 11:25
(Alliance News) - Caledonia Mining Corp on Tuesday reported double-digit growth in revenue for the first quarter of 2020, as gold production increased during the period.
Caledonia Mining, which holds a 64% stake in Zimbabwe's Blanket gold mine, reported earnings before interest, taxes, depreciation and amortisation at USD10.2 million, more than doubled from USD3.9 million the year before, on revenue that grew by 48% to USD23.6 million from USD15.9 million.
Operationally, Caledonia Mining gold production increased to 14,233 ounces from 11,948 ounces the prior year, as grade and recoveries improved, and tonnes mined and milled rose by 15% year-on-year.
Caledonia Mining declared a dividend for the quarter of 7.5 US cents per share, up 9.1% year-on-year from 6.875 cents.
Looking ahead, the group said Covid-19 had a negligible effect on production and capital projects in the quarter, and during the three-week lockdown in Zimbabwe, production continued at 93% capacity, but has returned to normal levels.
Caledonia Mining's production guidance for 2020 has remained unchanged at 53,000 to 56,000 ounces.
"I am delighted by Blanket Mine's continued strong financial and operating performance in the first quarter of 2020. The management initiatives which were implemented in 2019 have resulted in an almost 20% increase in gold production in the first quarter of 2020 compared to the first quarter of 2019. Increased production, combined with lower on-mine costs per ounce and an improved gold price, have resulted in a substantial increase in profit," said Chief Executive Officer Steve Curtis.
Shares in Caledonia Mining were up 0.8% at 1,058.00 pence on Tuesday in London.
By Dayo Laniyan; [email protected]
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