Caledonia Mining reports strong Q1 2024 performance as production and gold prices improve
17.05.2024 | NewsDirect
Caledonia Mining Corporation plc chief executive Mark Learmonth takes Proactive's Stephen Gunnion through the company's first-quarter performance.Caledonia increased gold production from over 16,000 ounces in the same period in 2023, to 17,500 ounces. This boost in production, coupled with a favourable gold price, resulted in gross profit rising from under $6 million to nearly $14 million. However, despite a reported net profit of $2.1 million, this figure included a substantial foreign exchange loss, specifically due to the devaluation of the Zimbabwean dollar. Adjusted for this loss, the earnings per share (EPS) shifted from a loss of $0.29 in Q1 of 2023 to a profit of $0.27 in Q1 of 2024.
Learmonth also addressed issues from the previous year, notably the Bilboes project, which had underperformed due to low-grade ore and resulted in its placement on care and maintenance from October 2023. Additionally, the company has managed a reduction in all-in sustaining costs from $1,400 an ounce to the mid-$1200s. Learmonth expressed hope regarding the new Zimbabwean currency, the ZiG, backed by gold, which was introduced in early April 2024 to stabilise and potentially appreciate the financial landscape.
Furthermore, the company announced a significant resource update, indicating a doubling of reserves and a 60% increase in measured and indicated resources. The life of the mine for the Blanket Mine has now been extended to 2034 and potentially into the 2040s with inferred material.
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