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Caledonia Mining sets new Q2 gold production record in Zimbabwe

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(Kitco News) - Caledonia Mining today announced that the company produced 16,710 ounces of gold in Q2 2021 at its Blanket mine in Zimbabwe, which is 24% higher than 13,499 ounces produced in Q2 2020 and a new production record for a second quarter.

The company’s gross revenue was $30.0 million, a 31% increase on the $22.9 million achieved in Q2 2020. Q2 2021 gross profit was $13.9 million, a 51% increase on $9.2 million gross profit in Q2 2020. Profit attributable to shareholders of the company was $2.7 million in Q2 2021, a 47% decrease compared to Q2 2020.

Caledonia Mining added that its EBITDA of $14.0 million in Q2 2021 was 103% higher compared to EBITDA of $6.9 million in Q2 2020. Basic IFRS earnings per share were 21.1 cents (Q2 2020: 43.1 cents) and adjusted earnings per share were 62.6 cents (Q2 2020: 36.8 cents).

The company said that its net profit was adversely affected by the impairment of the Glen Hume exploration asset following its Board's decision not to proceed further with this project because the property does not meet Caledonia's strategic requirements in terms of size, grade and width.

Additionally, the company said that its strong Q2 2021 results have left Caledonia well placed to achieve the company’s guidance of between 61,000-67,000 ounces for the year, with its immediate strategic focus to increase production to 80,000 ounces in 2022, while undertaking further exploration and development with the objective of extending the life of mine beyond 2034.

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