Caledonia in 7.3pc gold production increase despite electricity hitches

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Blanket Mine Zimbabwe copy
Blanket Mine Zimbabwe copy

Staff Writer

HARARE – New York Stock Exchange-listed Caledonia Mining Corporation posted a 7.3 percent increase in gold production for the third quarter of 2019 recording 13,646 ounces from 12,712 ounces of the second quarter.

Gold produced for the nine months to September 2019 was 38,306 ounces, which is approximately 3,2 percent below the 39,559 ounces produced in the corresponding period of 2018.

Caledonia however maintains its 2019 full year production guidance of 50,000 to 53,000 ounces and remains on track with progress towards its target of 80,000 ounces by 2022.

Chief executive Steve Curtis said production in the third quarter of 2019 was slightly below target but showed steady growth in production on the previous two quarters.

“Production in the quarter had a difficult start due to significant interruptions in the supply of electricity in July and early August although the electricity situation improved substantially later in the quarter. Caledonia remains on track to achieve our guidance of 50,000 to 53,000 ounces for the full year.”

“We are very pleased to have completed the shaft sinking phase of the central shaft project during the quarter, a significant milestone for our business. The shaft has now entered the equipping phase of the project which we expect to be completed in mid-2020,” said Curtis.

He further noted that the mining company is looking forward to commencing production from the central shaft during the second half of 2020 which is expected to deliver the company’s growth plan to achieve 75,000 ounces in 2021 and 80,000 ounces by 2022.

Caledonia’s primary asset is a 49 per cent interest in the Blanket gold mine in Zimbabwe and in November 2018, Caledonia announced that it had signed a legally binding agreement to increase its shareholding in Blanket to 64 percent subject to the receipt of, among other things, regulatory approvals.

As at June 30, 2019, Caledonia had cash of approximately US$7.9 million and the company plans to increase production at Blanket Mine to 75 000 ounces in 2021.

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