JOHANNESBURG (miningweekly.com) – Aim- and TSX-listed Caledonia Mining reported record gold production in the third quarter of 2016, amounting to 13 428 oz, from its Zimbabwe-based Blanket gold mine - 23% higher year-on-year and 7% higher than the previous record quarter.
The company attributed this increase to a rise in tons mined and milled following the completion of infrastructure works. A third mill was installed at Blanket during the quarter, which should further improve plant capacity.
In a statement released on Monday, CEO Steve Curtis noted that the benefits of improved mine flexibility had become increasingly apparent.
“Caledonia expects to see further reductions in the average cost of production as output ramps up, with the company targeting all-in sustaining costs of somewhere between $810 and $850,” he said.
The company is looking to produce 60 000 oz of gold in 2017 and expects to increase this to 80 000 oz by 2021.
Caledonia’s profit before tax rose to $4.11-million in the quarter under review from $2.24-million the previous year.
"Delivering increased ounces at a lower unit cost, into a stronger gold price, has resulted in adjusted earnings a share for the third quarter that are 59% higher than quarter three of 2015,” Curtis said.
He added that the company was pleased that its increased focus on exploration and resource development was now beginning to show results.
“The addition of over 200 000 oz of gold at a grade of 5 g/t during the quarter is testament to the success of these efforts. I am confident that the life-of-mine will be further supplemented by further resource additions and upgrades,” Curtis said.