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Nokuthaba Brita Ncube, [email protected]

VICTORIA Falls Stock Exchange (VFex)-listed mining group, Caledonia Mining Corporation, recorded US$50.1 million gross revenue in the second quarter ended June 2024 compared to the US$37 million in the corresponding period last year, spurred by higher gold production and favourable market prices.

A dividend of 14 cents per share was paid in April 2024 for the first quarter of 2024 and again in July 2024 for the second quarter.

The firm believes that its Blanket’s Mine operations life should extend past 2040 given past successful conversion of inferred mineral resources.

In its financial highlights for the period under review, the mining firm said due to both higher gold revenue and lower production costs, its gross profit also increased by 109,8 percent from the US$10,9 million in the previous quarter.

Caledonia said 20 773 ounces of gold were produced during the period up from 17 436 ounces achieved in the corresponding period. Chief executive officer, Mr Mark Learmonth, said the period under review was more profitable.

“This has been an excellent quarter during which profitability benefited from higher gold production, a higher gold price and lower costs per ounce. With today’s results, we remain on track to achieve our production and cost guidance for the year.

“I was delighted that the 2023 drilling campaign resulted in a significant increase to Blanket’s mineral resources and mineral reserves estimates, as well as an increase in Blanket’s mine life.

“A 10-year mine life, based on reserves, indicates the robustness of the ore bodies at Blanket. Management anticipates that Blanket’s mine life should extend past 2040 given past successful conversion of inferred mineral resources,” said Mr Learmonth.

He said during the quarter, the board took the decision to proceed with the single-phase development option for the Bilboes Sulphide Project.

“The results of the PEA indicate production of 1,5 million ounces of gold over a 10-year life of mine at an all-in sustaining cost of $968 per ounce.

“As such, Bilboes has the potential to almost triple Caledonia’s gold production to over 200,000 ounces per annum, in combination with production from Blanket,” said Mr Learmonth.

The company signed a US$53,2 million agreement in 2022 to acquire Bilboes Gold Limited as part of its expansion drive.
The peak funding for the project is estimated at US$309 million, with a sizeable proportion funded through debt and Caledonia plans to file a new feasibility study with prospective debt providers.

The mining house has it on record that it is eyeing consolidating its strategy of becoming a multi-asset gold producer by acquiring several lucrative mining assets.

Over the years, the firm has been creating a solid base at becoming a multi-asset gold producer by making significant investments in operations.

For instance, in 2022, the resource group expanded its footprint by purchasing Motapa Mining Company UK Limited and signed a US$53,2 million agreement to buy Bilboes Gold Limited as part of its expansion drive.

Bilboes Gold is a gold mining entity that owns three major gold mines in Matabeleland North and was once ranked among the country’s 10 biggest gold producers.