JOHANNESBURG (miningweekly.com) – Zimbabwe-focused gold miner Caledonia Mining’s 49%-owned Blanket mine produced 9 960 oz in the first quarter of the year.
Although output was 2.7% lower than in the first quarter of 2014, it was in line with expectations.
The Aim-listed company added that the mine’s $670/oz cash cost was also lower than expected, while all-in-sustaining costs, at $959/oz, were expected to fall as corporate administration costs and head office capital expenditure fell.
Caledonia sold 10 773 oz of gold in the quarter, including 813 oz brought forward from the preceding quarter.
"This is a very important year for Caledonia, as we start work in earnest on implementing the revised life-of-mine plan, which we presented to investors in November last year,” Caledonia president and CEO Steve Curtis said.
He added that the company, which recorded a net profit of $1.6-million, was currently sinking or deepening four shafts at its flagship mine, which would result in increases in production and earnings in the first quarter of 2016.
"We have sharpened our focus on reducing costs and we are streamlining our corporate structure by terminating dormant companies and noncore assets. Operationally, the management team is focused on implementing the revised plan,” Curtis said.