Caledonia Mining Corporation Plc (LON:CMCL) has enjoyed a record quarter for gold production from the Blanket mine in Zimbabwe.
Some 13,591 ounces of gold were produced in the last three months, an 18% increase on a year ago and 1% up quarter on quarter.
Steve Cutis, chief executive, said teh rising production meant it was confident of achieving a significant improvement in earnings for 2017.
“As we increase production we expect earnings will continue to benefit from the increased sales volumes and from a lower average cost per ounce as fixed production costs and overheads are spread across higher production.
Over the year, the mine produced 50,351 ounces, up 17.6% and a new annual production record as the miner began work below 750 metres
The previous record from underground operations was 45,530 ounces achieved in 2013.
Target gold production for 2017 is approximately 60,000 ounces at an estimated on-mine cost in the range of $600 to $630 per ounce and an All-in Sustaining Cost in the range of $810 to $850 per ounce, with the target still 80,000 ounces annually by 2021.
The sinking of the new central shaft was also going to plan and reached a depth of 534m by year end said Curtis.