Caledonia Mining reports strong second quarter as gold prices surge
Mon Aug 12 2024
Strong gold prices supported a surge in Caledonia Mining Corporation PLC (AIM:CMCL, NYSE-A:CMCL)’s gross revenues in the second quarter to $50.1 million, a substantial increase from $37 million in the same period last year.
Gross profit more than doubled to $22.9 million, reflecting both the increased revenue and lower production costs.
During the quarter, Caledonia's Blanket Mine produced 20,773 ounces of gold, marking a 19.1% increase compared to the second quarter of 2023.
The on-mine cost per ounce decreased slightly to $906, while the consolidated all-in sustaining cost (AISC) dropped by 7.7% to $1,253 per ounce.
Caledonia also made progress with its Bilboes Sulphide Project, publishing a preliminary economic assessment that forecasts production of 1.5 million ounces of gold over a 10-year mine life at an AISC of $968 per ounce.
Additionally, updated mineral reserves and resources estimates at the Blanket Mine showed a 106% increase in reserves and extended the mine's life to 2034, with the potential to go beyond 2040 based on past resource conversion success.
The company maintained its dividend at 14 cents per share, with future dividends expected to be declared in alignment with the quarterly results releases.
Chief executive Mark Learmonth stated: "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."
Looking ahead, Caledonia continues to advance its exploration activities and is preparing a new feasibility study for the Bilboes Sulphide Project, expected in early 2025.
Source: https://www.proactiveinvestors.co.uk/