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Caledonia reports its Q1 2021 production affected by underground flooding

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(Kitco News) - Caledonia Mining announced yesterday that the company produced 13,197 ounces of gold in Q1 2021 at its Blanket mine in Zimbabwe, compared to 14,233 ounces mined in Q1 2020. The company said that production was adversely affected by underground flooding and lower grades.

Gross revenues were $25.7 million (Q1 2020: $23.6 million). Higher revenues reflect a higher realised gold price offset by lower sales due to lower production. Revenues include the sale proceeds of 1,584 ounces of gold in work-in-progress brought forward from 2020. 

EBITDA excluding net foreign exchange gains and the export incentive credit was $9.5 million (Q1 2020: $9.8 million). Adjusted earnings per share were 51.6 cents (Q1 2020: 57.3 cents). Net cash from operating activities of $2.0 million (Q1 2020: $10.1 million).            

The company said that cash from operations was adversely affected by increased working capital, in particular higher amounts due for gold sales - these have been settled in full after the end of the quarter.            

The company added that it has increased quarterly dividend by 9 per cent to 12 cents per share in April 2021, a 75 per cent cumulative increase from the level of 6.875 cents since October 2019. This increased dividend is due to Caledonia's enhanced outlook following the commissioning of the Central Shaft at the end of the Quarter.

Caledonia has also informed that the company commissioned the Central shaft at the end of the Quarter. The company said that commissioning of Central shaft means that, despite the slow start to the year, it is confident that the company will achieve its production guidance for 2021 of between 61,000 to 67,000 ounces and 80,000 ounces per annum from 2022 onwards.

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