Caledonia Mining Corporation PLC (AIM:CMCL, NYSE-A:CMCL) posted record revenues and production in its latest quarter as the Blanket gold mine in Zimbabwe showed a “significant improvement”.
Revenues for the three months to the end of September were US$41.2 million, making US$107.7 million for the first nine months, with underlying profits of US$15.5 million, down 2.9% on the same period a year ago.
Costs were US$928 an ounce, up from US$734, which Caledonia said mainly reflected the cost of the Bilboes oxide operation, which has been “a disappointment” and is now on care and maintenance.
As a result from October, monthly costs at Bilboes have dropped to US$0.2 million a month from US$1 million.
Production in the quarter totalled 21,120oz, a new quarterly record, and the miner said it is on track to meet guidance of between 75-80,000oz in 2023.
A similar level of gold ounce output from the Blanket mine is expected in 2024.
Mark Learmonth, chief executive, commented: "Production at Blanket in the quarter was excellent: Blanket is now operating as expected having achieved record gold production in the quarter.
"Management is exploring initiatives to further improve mining efficiencies and manage operating costs.
"The Bilboes oxide mine has been a disappointment and as a result of operating losses incurred at Bilboes it has been returned to care and maintenance with effect from 1 October.
"We continue to work on a revised feasibility study for the sulphide project at Bilboes which will consider updated commercial assumptions and will inform the most judicious way to commercialise the project."