Zimpapers Logo

Payments to the Government by Canadian based Caledonia Mining Corporation, which owns 49 percent stake in Blanket Mine in Gwanda, Matabeleland South province, for the quarter ended June 30 this year, increased by $878 000 to $2,963 million.

Payments included to the Gwanda Community Share Ownership Trust in terms of the company’s indigenisation commitments, royalties, taxation, as well as other non-taxation charges to the Zimbabwe government and its agencies.

The group said payments to the Zimbabwe government were higher in the quarter compared to the preceding one. This came out during management discussion and analysis of the consolidated operating results and financial position of the company.

“This was due to higher royalty payments, higher prevailing gold price and sales volumes and the tax payable on the profit arising on the sale of the Bills by Blanket,” the group said.

In May, this year the company announced that Blanket Mine had sold Treasury Bills issued by the Government for a gross value of approximately $3,2 million. During the period under review the company produced 12 510 ounces of gold compared to 10 401 ounces in the same period last year.

The company said there was “higher” gold production due to increased tons mined and milled and higher grade. Cash from operating activities surged to $7,2 million compared to $1,9 million.

“This reflects the higher sales volumes and gold price and lower average costs of production,” the group said.

Caledonia in 2014 announced its Revised Investment Plan (RIP) and production projections for Blanket Mine whose objectives were to improve the underground infrastructure, logistics as well as to allow an efficient and sustainable production build-up.

The group added that the RIP provided for proposed investment of approximately $50 million between 2015 and 2017 and a further $20 million during the period 2018 to 2020. – New Ziana