Aim- and NYSE-listed gold miner Caledonia Mining Corporation generated gross revenue of $100-million for the year ended December 31, 2020, up from the $75.8-million in 2019; while net cash from operating activities reached $30.9-million.

Total dividends paid for the 2020 financial year were $0.33 a share – a 21.8% year-on-year increase.

The miner’s gross profit for 2020 was $46.6-million, up from the gross profit of $31.1-million of 2019; while the 2020 gross margin was 47%.

Caledonia also managed to increase production from its Blanket mine, in Zimbabwe, from 55 182 oz in 2019, to a record 57 899 oz in 2020.

As such, Caledonia’s earnings before interest, taxes, depreciation and amortisation (Ebitda) was $43.3-million, up from the Ebitda of $29.9-million reported in 2019.

The miner’s on-mine costs in 2020 were $744/oz, while its normalised all-in sustaining costs were $946/oz.

Caledonia’s net cash and cash equivalents in 2020 were $19.1-million, while its cash position increased owing to a $13-million (gross) equity issue in the third quarter of 2020.
 
In terms of gold production, the miner’s gold recoveries improved to 93.8% following the completion of the upgrade to the oxygen plant in 2020.

Caledonia also managed to complete the equipping of its Central shaft in November 2020, with commissioning expected before the end of March, after which production is expected to begin to ramp up to about 80 000 oz in 2022.

CEO Steve Curtis says that, operationally, the past 12 months have been “transformational” for the business, and that the Central shaft has been a five-year project costing about $67-million, all funded through internal cash flow.

“I am delighted that equipping was completed in the period and commissioning is on track to be completed in the first quarter of 2021.”

He adds that the robust operating performance was supported by a rising gold price, with profit being almost 50% higher than in 2019.

“Once Central shaft is commissioned, we can start to expect further increases in production. Guidance for 2021 is a range of 61 000 oz to 67 000 oz, while from 2022 onwards it is 80 000 oz – 38% higher than in 2020.”

Meanwhile, in an effort to reduce the impacts of its operations on the natural environment and in a general drive towards a more sustainable future for its business, Caledonia has entered into a contract to build a 12 MW solar plant at the Blanket mine.

About 27% of the mine’s daily electricity demand is expected to be provided by the new solar plant, thereby significantly decreasing its reliance on non-renewable energy sources. The project is also expected to yield a “modest return” to shareholders, he states.
 
“Caledonia’s immediate strategic focus is to complete the Central shaft project, which is expected to increase production, reduce operating costs and increase the flexibility to undertake further exploration and development, thereby safeguarding and enhancing Blanket’s long-term future,” states Curtis.