- Caledonia's Q2 gold production dropped by 9% YoY
- However, production at Caledonia's Mine shows improvement from prior quarter
- Caledonia Mining Corporation remains positive about future
Harare- Caledonia Mining Corporation, listed on the US-dollar denominated bourse, Victoria Falls Stock Exchange (VFEX), reported a 9% decline in production during the second quarter ended June 2023, with gold production falling to 18,512 ounces from 20,091 ounces during the same period last year.
However, production at Blanket mine in the quarter slightly rose by 8.7% to 17,436 ounces from the 16,036 ounces produced in the first quarter of 2023. The gold produced at Blanket mine in the first six months of 2023 was 33,472 ounces, compared to 38,606 ounces produced in the first half of 2022.
CEO Mark Learmonth commented that production at Blanket mine in the quarter was below expectations, due to missed blasts and errors in blasting accuracy in certain mining areas.
These factors have a significant impact on gold production, as they result in inadequate face advances and increased dilution, both of which can lead to lower yields of gold-bearing ore and reduced gold production.
However, the CEO said management has focused on addressing these issues, and production in late June and early July showed improvement.
The lower production levels in the first six months of 2023 were due to issues arising in the Quarter and difficulties encountered in the prior quarter, including mechanical breakdowns.
Nonetheless, management reiterated its production guidance for Blanket mine for the year to December 31, 2023, of between 75,000 and 80,000 ounces, in light of the improved performance in late June and early July.
The company did not provide specific details on how the management team worked to address the production challenges at Blanket mine, but it is likely that they employed a range of strategies to improve efficiency and effectiveness, such as conducting a thorough analysis of the blasting process and utilizing new technologies or equipment to improve the accuracy of the blasts.
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