Caledonia Mining Corp on Wednesday said a sharp rise in the gold price helped offset a decline in quarterly production.
During the three months to September, Caledonia's gold production dipped 2.4% year-on-year to 13,646 ounces, held back by lower mining rates and lower grades. However, the figure was up 7.3% quarter-on-quarter.
All-in sustaining costs were 16% higher, but the average realised gold price was 23% higher, helping pretax profit more than double to USD10.4 million.
Jersey-based Caledonia, which mines from the Blanket project in Zimbabwe, registered a 20% increase in revenue to USD20.0 million.
"The third quarter of 2019 can be characterised by two distinct phases. The first six weeks of the quarter were seriously affected by power outages and by the continued effects of the unstable economic conditions in Zimbabwe on our employees; both of these factors had an adverse effect on production and financial performance," said Chief Executive Steve Curtis.
"The last six weeks of the quarter showed a substantial improvement as the electricity supply improved; and measures taken in previous quarters to improve mining controls began to bear fruit. Notwithstanding further interruptions to the electricity supply in October, the excellent performance in the second half of the quarter has continued into October and early November," Curtis continued.
Looking ahead, Caledonia is confident on meeting 2019 production guidance of 50,000 ounces to 53,000 ounces of gold. By 2022, it wants to produce 80,000 ounces a year from Blanket.
The company in August lowered 2019 guidance from 53,000 ounces to 56,000 ounces due in part to power cuts in Zimbabwe. Production in 2018 was 54,511 ounces.
Shares were 2.2% lower on Wednesday at a price of 610.00 pence each in London.
Caledonia Mining Corporation Plc TSX Exchange | Nov 1, 2019, 5:27 AM EDT | Real-time price
logo CAL $ 11.10 RT CHANGE $0.61 (+5.8151%)
NYBob...... The Cmcl Chart is very bullish. We could see a slight pull back as it hits highs here, but we can be certain there is growth ahead for the Company stock.......... And to think of potential ACQUISITIONS possibly........... I have been in this stock for many years when it was trading at the .05 level under Stefen Hayden. It has been a long haul, but now there is air under its wings............ GOOD INVESTING NY BOB sherman106 thank you -
P/E RATIO: 2. try to find some gold producer with a lower Price earnings ratio ??? its the best I found -
Mostly if I founf one below 10 it was a real bargain and a 2. might be a 10 bager? :-)) with a fair market value -
ex. compare to.... Great Gold & Silver Mines producers with low price earnings ratio like P/E 21.5 to KL compare to - ex.
aem 107 abx 46 dgc 27 fnv 63 img 23 k 47 yri 29
It tells me that Kirkland Lake Gold kl 21.5 its undervalued, oversold and a great bargain profitable gold producer for investors as me looking for - Real Money Safety Hard Asset -
Caledonia Mining on track to hit full year guidance as grade Caledonia Mining on track to hit full year guidance as grades improve 563 views•Oct 15, 2019 Proactive 19.9K subscribers
Caledonia Mining into ramp-up phase as central shaft excavation completes - Snapshot Rising expected cash generation from 2020 expected -
CALEDONIA Mining Corporation, which owns Blanket Mine in Matabeleland South province, targets to increase gold output to 75 000 ounces in 2021 as the mine has begun focusing on increasing output.
Last year, Blanket Mine produced 54 511oz of the yellow metal and this year, the gold miner targets production ranging between 50 000 and 53 000oz.
“Blanket Mine plans to increase production from 54 511oz of gold in 2018 to approximately 75 000oz in 2021 and approximately 80 000oz in 2022,” said Caledonia in a statement announcing the appointment of Mr Nick Clarke as an independent non-executive director.
Mr Clarke, who is also chairman of Central Asia Metals PLC, is a highly experienced Chartered Engineer with 45 years in the mining industry. He has held senior positions in several resource companies and is well known as a successful executive in the sector having been involved in the construction of major mining projects and conducted several fundraising initiatives on the stock markets.
The group’s chairman, Mr Leigh Wilson, was quoted as saying: “As we enter the equipping phase of the Central Shaft project at Blanket Mine, having completed shaft sinking in July, Caledonia’s management team and board continue also to focus on new opportunities as Blanket Mine begins to ramp up to its target of 80 000oz of gold per year from 2022 onwards.
“Mr Clarke’s experience will provide further support in evaluating and implementing these opportunities, with Blanket Mine’s ongoing mining operations acting as the catalyst in furtherance of the company’s growth and development”.
On his appointment as an independent non-executive director of Caledonia, Mr Clarke said he was delighted to join Caledonia’s board at an exciting time in the company’s development.
“It is testament to the strength of Caledonia’s management team that, in what has been a turbulent period in Zimbabwe, the Blanket Mine has operated successfully, Caledonia has continued to pay a regular quarterly dividend and the Central Shaft project is nearing completion.
“I look forward to being part of Caledonia’s board and working with my fellow directors and Caledonia’s management team to support Caledonia’s profitable growth,” he said.
In July this year, the mining group, which owns 49 percent interest in Blanket Mine, announced that it had completed shaft sinking at the new Central Shaft at the mine under an estimated $44 million investment.
Meanwhile, gold output at Blanket Mine improved by 6,4 percent to 12 712oz in the second quarter ended June 30, 2019 compared to 11 948oz in the previous quarter. Gold output for the quarter under review was slightly below target, but ahead of the comparable quarter in 2018, where the projection was 12 657oz.
Despite gold output in the quarter under review being lower than the previous comparable period, Caledonia maintains its 2019 full year production guidance of 53 000 to 56 000oz and remains on track with progress towards its 2022 target.
Low Gold price its a good time to add :-)) the more volatility the Higher It Will FLY ^ :-)) Imo!
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