Mining News
Zimbabwe-focused gold miner Caledonia reports profit of $5.7M in Q3, reiterates production guidance
 |
Get all the essential market news and expert opinions in one place with our daily newsletter. Receive a comprehensive recap of the day's top stories directly to your inbox. Sign up here! |
(Kitco News) - Zimbabwe-focused gold producer Caledonia Mining (NYSE: CMCL) reported Tuesday that its Blanket mine produced 21,772 ounces of gold in Q3 2023, 3% higher than the 21,120 ounces produced in Q3 2022 and a new quarterly production record.
The company said that Q3 2023 all-in sustaining costs (AISC) at Blanket of $1,171 per ounce were higher compared to Q3 2022 ($962 per ounce), primarily due to higher on-mine costs per ounce and higher sustaining capital expenditures and administrative expenses.
The company’s Q3 2023 revenues were $41.2 million, a record quarterly performance for the group, while 9M 2023 revenues of $107.7 million were in line with the prior year performance.
Caledonia also reported Q3 2023 gross profit of $14.1 million (Q3 2022: $15.6 million), profit of $5.7 million (Q3 2022: $10.2 million) and total comprehensive income of $5.6 million (Q3 2022: $9.5 million).
The company said it reiterated its gold production guidance for 2023 of between 75,000 and 80,000 ounces at Blanket.
“This quarter's results demonstrate a significant improvement in the production performance of Blanket mine, which reported record quarterly production. This quarter was also the last quarter to be affected by the negative contribution from the Bilboes oxide mine prior to being placed on care and maintenance from 1 October 2023. This will reduce monthly costs from approximately $1 million to approximately $200,000 at Bilboes,” the company noted in a news release.
Importantly, according to Caledonia, the company is exploring initiatives to further improve mining efficiencies and manage operating costs at Blanket, and continues to work on a revised feasibility study for the sulphide project at Bilboes.
Caledonia Mining’s primary asset is the Blanket mine in Zimbabwe. In 2022, the company achieved its long-term annual production target of 80,000 ounces. Caledonia said it is also committed to evaluating other investment opportunities in Zimbabwe; since November 2021 it has acquired Maligreen, Motapa and Bilboes.
