18th Mar 2020 12:01
(Alliance News) - Gold miner Caledonia Mining Corp on Wednesday said it is "delighted" with the performance of Zimbabwe's Blanket mine during 2019.
Caledonia's revenue for the year increased by 11% to USD75.8 million, and pretax profit trebled to USD60.7 million. Profit was helped by the revenue rise as well as a large foreign exchange boost due to the slump in Zimbabwe's currency and the profit on the sale of a subsidiary.
Production during 2019, as reported in January, was 55,182 ounces of gold, ahead of guidance of 50,000 ounces to 53,000 ounces. This guidance was cut in August to 53,000 ounces from 56,000 ounces previously due in part to power issues at the Blanket mine.
Caledonia has guided for production during 2020 of between 53,000 ounces and 56,000 ounces once again.
"I am delighted by the Blanket mine's strong performance which resulted in a record level of production in the [fourth] quarter. Increased production, combined with lower on-mine costs per ounce and an improved gold price, resulted in a substantial increase in profit," said Chief Executive Steve Curtis.
Curtis said financial and operating performance were both "excellent", despite issues during the year at Blanket.
Looking ahead, Caledonia's main focus is the sinking of the Central Shaft at Blanket, which is set to be commissioned towards the end of 2020. This will allow the mine to target production of 80,000 ounces a year from 2022.
Shares were 1.2% lower on Wednesday at midday in London at 642.00 pence each.
By George Collard; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Caledonia Min