Caledonia Mining Corporation PLC (AIM:CMCL, NYSE-A:CMCL) has reported a consistent performance from the Blanket gold mine in Zimbabwe in its most recent three months.
Production in the three months to end December 2024, its fourth quarter, was 19,841 ounces after a record year for milling activity.
For the year overall, output was 78,656oz, slightly ahead of 2023’s total and in the mid-range of guidance.
An estimated 700 oz of unrecovered gold is contained in an 8,400-tonne stockpile, which provides the basis for a strong start for 2025, Caledonia added.
Gold sales at Blanket amounted to 76,271 oz over the year and 17,734 oz in the fourth quarter.
For 2025, Blanket guidance is 73,500 to 77,500 oz, reflecting the mining of lower-grade areas.
On-mine cost is forecast at $1,050/oz to $1,150/oz (up from $950/oz to $1,050/oz in 2024), with all-in sustaining cost to be in the range of $1,690/oz to $1,790/oz (up from $1,450/oz to $1,550/oz in 2024).
Capital expenditure for the current year is estimated at US$41.8 million, with almost US$35 million of that earmarked for Blanket.
“These investments aim to modernise operations and improve mining efficiency at Blanket,” said the statement.
“While there will be short-term cost pressures, the long-term goal is to reduce costs, improve profitability, and ensure the continued success of Blanket.
“All expenditure will be funded from cash generation and cash reserves with no anticipated impact to the dividend."
The remaining US$5.8 million of capex is earmarked for the development projects at Bilboes and Motapa.
Mark Learmonth, chief executive, said that as well as for milling activity, Caledonia set a record for hoisting 89,727 tonnes of ore, which exceeded its milling capacity.
“As a result of the strong mine production, we closed the year with a stockpile of 8,400 tonnes which puts us in a good position to start 2025," he said.
"The 2025 capital budget addresses immediate operational needs and includes strategic investments to enhance Blanket's operating resilience and efficiency.
"At Bilboes, we continue to progress the revised feasibility study for the Bilboes sulphide project, which is scheduled to complete later in the first quarter of this year.
"Following the publication, in November 2024, of encouraging exploration results at Motapa, the 2025 capital budget includes provision for further exploration on targeted sites with the most geological potential.”