JOHANNESBURG (miningweekly.com) – NYSE-, Aim- and TSX-listed Caledonia Mining produced 14 396 oz of gold in the third quarter ended September 30, a 7% year-on-year increase.
The higher production was primarily the result of higher grades and contributed to higher revenues and a substantial increase in profit.
Revenues grew to $18.23-million, compared with $17.64-million in third quarter of 2016, while the net profit attributable to shareholders in the quarter was $3.1-million, almost three times higher than that of the third quarter of 2016 and over four times higher than in the second quarter of this year.
The all-in sustaining cost (AISC) fell sharply in the quarter to $773/oz, compared with $855/oz in the second quarter and $1 004/oz in the third quarter of 2016, owing to the higher gold production, which results in fixed costs being spread across more ounces.
The year-on-year change in AISC was also owing to lower general and administrative expenses and the recognition of the export incentive credit which is paid by the Zimbabwean government at a value of 3.5% of the Blanket mine’s revenues.