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Caledonia Mining reports 51% jump in first-quarter profit, strong output in April

Published: 07:35 12 May 2022 BST

Caledonia Mining Corporation PLC -

Caledonia Mining Corp PLC reported a 51% jump in first-quarter profit on record gold production and higher gold prices.

“The first quarter of 2022 was an excellent start to 2022,” said chief executive Steve Curtis. “Gold production in the quarter represents a new production record for any first quarter.” 

READ: Caledonia Mining ramps up production at Blanket to new record

The company, which operates the Blanket mine in Zimbabwe, also reported strong production in April and reiterated that it was confident of meeting its full-year output guidance of 73,000 to 80,000 ounces. It produced 6,797 ounces of gold in April, representing an annualised production rate of about 81,500 ounces.

First-quarter output rose on increased tonnes milled, better grade and improved recovery. The production excluded about 1,500 ounces of recoverable gold contained in an ore stockpile as Caledonia awaits the commissioning of an additional mill later in the year.

"Operating costs were well controlled,” said Curtis.

On-mine cost per ounce fell 16% from the year-earlier quarter due to higher production and lower diesel consumption following the installation of equipment in late 2021 which allowed it to manage poor-quality grid power.

EBITDA rose to US$14.6mln, from U$9.7mln in the first quarter of 2021, as revenue grew 37% to US$35.1mln.

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