Higher output, strong price boosts Caledonia's 2019 earnings
Aim- and TSX-listed Caledonia Mining Corporation's share price on the LSE rose by nearly 10% on Thursday after the company announced that its earnings for 2019 would be substantially higher than market expectations.
The miner, which operates the Blanket mine, in Zimbabwe, pointed out that the continued strength of the gold price, the company's higher-than-expected production and its lower-than-expected operating costs had resulted in expected adjusted earnings a share of between $1.55 and $1.75, compared with the company's initial guidance of earnings a share of between $0.86 and $1.17.
Earnings a share on an International Financial Reporting Standard basis, which includes net realised and unrealised foreign exchange profits, are expected to be about $3.80 to $4.
"I am delighted by the excellent performance of the Blanket mine, particularly in the latter stages of 2019, which, combined with the strength of the gold price, has resulted in us comfortably exceeding expectations for the year ended December 31, 2019. This is down to the hard work and dedication of our exceptional team operating at the Blanket mine, not least in how they have successfully addressed challenges in the year such as the variable power supply and grade fluctuations.
"With these challenges addressed, an excellent start to 2020 and with the development of the Central Shaft continuing on time and record quarterly production in the fourth quarter, we look forward to an exciting year ahead," commented Caledonia CEO Steve Curtis.
Caledonia will publish its results for the 2019 financial year on March 20.
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