Caledonia to surpass earnings market expectations in 2019

0
651
Blanket Mine
Blanket Mine

HARARE – Canadian-based mining firm, Caledonia Mining Corporation says earnings for 2019 will surpass market expectations largely on continued strength of the gold price, higher than expected production and lower than expected operating costs.

Early this year, the company completed the acquisition of an additional 15% shareholding in Blanket Mine from Fremiro Private Limited (Fremiro), taking its interest from 49% to 64%.

As a result of these factors, adjusted earnings per share (before net realised and unrealised foreign exchange gains) for 2019 are poised to be in the range of US$1.55 to US$1.75 per share compared to company guidance in early 2019 of US$0.86 to US$1.17 per share.

EPS on an IFRS basis which includes net realised and unrealised foreign exchange profits is projected to be at US$3.80 to US$4.00 per share.

“I am delighted by the excellent performance of the Blanket Mine, particularly in the latter stages of 2019, which, combined with the strength of the gold price, has resulted in us comfortably exceeding expectations for the year ended December 31, 2019,” said company chief executive officer Steve Curtis in a statement on Thursday.

This is down to the hard work and dedication, he said, of its exceptional team operating at the Blanket Mine as they managed to mitigate challenges arising from the power cuts and grade fluctuations.

In order to ensure uninterrupted supply of electricity, the miner have also taken steps to build resilience in the face of a constrained electricity market through the purchase and installation of an additional 6MW of back-up generators which ensure that Blanket is 100% self-sufficient on diesel generators. Also it is in advanced stages of evaluating a solar PV plant project which could supply Blanket’s baseload demand during peak sunlight hours.

“With these challenges addressed, an excellent start to 2020 and with the development of the Central Shaft continuing on time and record quarterly production in the fourth quarter, we look forward to an exciting year ahead.”

The miner, expects to publish last year’s results in the next 2 months.

Early this year, the company completed the acquisition of an additional 15% shareholding in Blanket Mine from Fremiro Private Limited (Fremiro), taking its interest from 49% to 64%.

As part of its investment plans to ramp up production, Canadian based mining firm Caledonia Mining, recently it successfully installed and commissioned a new US$1.6 million oxygen plant at its Blanket Mine which is expected to reduce operating costs and improve operating efficiencies.

close

Sign up to receive awesome content in your inbox, every day.

We don’t spam! Read our privacy policy for more info.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

two × 3 =