Caledonia posts highest first-quarter output on record

12th May 2022 By: Marleny Arnoldi - Deputy Editor Online

Dual-listed Caledonia Mining Corporation posted earnings before interest, taxes, depreciation and amortisation (Ebitda) of $14.6-million for the quarter ended March 31, compared with Ebitda of $9.7-million reported for the quarter ended March 31, 2021.

Adjusted earnings per share (EPS) amounted to $0.63, compared with adjusted EPS of $0.52 in the prior comparable quarter.

Caledonia paid a dividend of $0.14 in the quarter under review – a 27% increase on the $0.11 dividend paid in the first quarter of 2021.

Caladonia produced 18 515 oz for the quarter, compared with 13 197 oz in the prior comparable period.

The company attributes the 40% improvement in production to higher tonnes milled, improved grade and better metallurgical recoveries. Caledonia also accumulated an ore stockpile containing 1 500 oz of recoverable gold, which was not included in the gold output numbers for the quarter.

Gold production guidance for the full-year is maintained at between 73 000 oz and 80 000 oz.

CEO Steve Curtis says production of almost 6 800 oz in April reflects an annualised production rate that is marginally above the top end of guidance for the year, which will bode well for the second-quarter results.

He adds that the Central Shaft, at the Blanket mine, in Zimbabwe, which was commissioned in March last year, is now hoisting waste material to connect the shaft to the production areas.

This has relieved pressure on the Number 4 Shaft, which can now focus on hoisting ore until the Central Shaft takes over this role later in the year.

Meanwhile, Caledonia’s 12 MW solar project is in the final stage of construction and should be operational within the next few months.