- Quarterly revenue reaches US$46.9million
- The Blanket Mine produced 18,992 Ounces
- Gross profit for the three months was US$19.3 million
- Blanket mine targets to produce 74,000 to 78,000 ounces for 2024
Harare- Caledonia Mining Corporation, the second-largest gold producer reported quarterly revenue of US$46.9 million, bringing its year-to-date revenue for the first nine months of 2024 to US$135.5 million.
The high in revenue despite low production levels is attributed to a rise in gold prices.
Last year the prices of gold averaged $1,900 to 1,100 per ounce, while this year have increased to $2,500 per ounce.
This significant jump in price has allowed the company to generate higher revenue even with reduced production output.
The Blanket Mine produced 18,992 ounces over the three months, which was 12% lower than the 21,772 ounces produced in the same period last year, a record quarter for the company.
The decrease in production was attributed to lower grades and recoveries.
Gross profit for the three months ended in September was US$19.3 million, up from US$14.1 million in the third quarter of 2023, due to higher gold prices and reduced costs at the Bilboes oxide mine.
For the nine-month period, Blanket produced 56,815 ounces, an increase from 55,244 ounces in the previous year. Caledonia anticipates production between 74,000 and 78,000 ounces at Blanket for the full year.
"We continue to explore ways to reduce on-mine costs at Blanket particularly the costs of electricity and labour, where several initiatives are being implemented and further measures are under consideration," said CEO Mark Learmonth.
All-in sustaining cost for the quarter was US$1,501 per ounce.
“Immediate strategic focus is to maintain production at Blanket at the targeted range of 74,000 to 78,000 ounces for 2024 and at a similar level for 2025."
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