31st Mar 2014 11:06
LONDON (Alliance News) - Caledonia Mining Corp Monday said its pretax profit halved in its full-year as falls in the gold price offset positive production rates.
The exploration and development mining company which has operations in Zimbabwe and Zambia said its pretax profit fell to CAD9.4 million in 2013 from CAD20.2 million in 2012 as revenues fell 13% to CAD65.1 million from CAD75.2 million.
The company said its revenues fell despite a slight increase in gold production to 45,527 ounces from 45,465 ounces as the company's average realised gold price fell to USD1,402 per ounce from USD1,666 per ounce.
The company also noted that only 11,417 ounces of gold were produced during the fourth quarter of the year, which represents a 3.4% decrease on the gold production in the fourth quarter 2012, as production was hurt by a three-day shut down of milling-plant operations for essential maintenance and a fall in the realised head grade, which is returning towards its long-term mine average grade of 3.84 grams per tonne.
Caledonia Mining also said its administrative expenses increased 90% to CAD7.8 million from CAD4.1 million as the company develops operations at its Blanket Mine in Zimbabwe and noted that it completed a sales deal in January to sell all the gold produced on site to state-owned Fidelity Printers and Refiners Ltd, the company now responsible for all final refining and marketing of gold produced in the country.
The company also reiterated its previous guidance of 48,000 ounces of gold production in 2014 and 52,000 ounces in 2015.
Caledonia Mining shares were down 1.15 to 46.50 pence Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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