Caledonia Mining 1Q Profit Rose on Record Gold Production — Commodity Comment

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By Jaime Llinares Taboada

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Caledonia Mining on Thursday reported higher earnings for the first quarter of the year, as gold production reached a new record for the first three months of the year. Here’s what the owner of the Blanket mine in Zimbabwe had to say:

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On 1Q performance:

“18,515 ounces of gold produced in the quarter (Q1 2021: 13,197 ounces). The 40 percent increase in production was due to higher tonnes milled, improved grade and better metallurgical recoveries.”

“Gold production in the quarter represents a new production record for any first quarter.”

“Gross revenues of $35.1 million (Q1 2021: $25.7 million). Higher revenues reflect a 40 per cent increase in production and a six per cent increase in the realized gold price. Revenues include the sale proceeds of 442 ounces (net) of gold in work-in-progress.”

“Ebitda of $14.6 million (Q1 2021: $9.7 million).”

“On-mine cost of $698 per ounce (Q1 2021: $836 per ounce). Lower cost per ounce was primarily due to higher production, which means that fixed costs are spread across more ounces, improved grade and reduced use of diesel generators. All -in sustaining cost of $968 per ounce (Q1 2021: $1,044 per ounce).”

“Adjusted earnings per share of 62.5 cents (Q1 2021: 51.6 cents). Net cash from operating activities of $10.2 million (Q1 2021: $2.0 million).”

On 2022 guidance:

“Production in April showed a further improvement: production of almost 6,800 ounces in the month reflects an annualised production rate that is marginally above the top end of our guidance range for 2022 of 73,000 to 80,000 ounces of gold.”

“We are confident we will achieve our production guidance for 2022 of 73,000 to 80,000 ounces.”

Write to Jaime Llinares Taboada at [email protected]; @JaimeLlinaresT


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