Gold production stood at 12,042 ounces (oz) versus 11,588 oz in Q2 2013. The increase in production was mainly attributable to improvement in the realised grade to 4.03 grams/tonne (g/t) from 3.82 g/t and an improved gold recovery rate of 93.6% compared to 93.2% in Q2 2013.
The management indicated confidence that the Blanket mine is on track to achieve its targeted production of 44,000 oz for 2013.
Gold sales stood at 12,042 oz at an average sales price of CAD$1,330 per oz, leading to total revenues of CAD$16.6m.
Gross profit was CAD$7.7m compared to CAD$8.6m in Q2 2013.
Net profit improved to CAD$3.7m from CAD$3m during the same period, thereby improving EPS to 7.2 cents from 5.8 cents in the previous quarter.
This improvement was owing to a drop in Blanket mine’s cash operating cost per oz of gold to US$554 from US$584 in the previous quarter.
Also, the ongoing exploration drilling at the Blanket mine below 750m level and at Blanket’s satellite projects continued to deliver encouraging results.
The development and exploration work at GG and Mascot continued to identify mineralisation.
The production target for 2014 and 2015 was maintained at 48,000 oz and 52,000 oz, respectively.
Au view: Caledonia Mining delivered a robust production performance in Q3 2013.
The company witnessed a rise in the production for the period, largely due to higher realised gold grades and better recovery rates.
Besides, the company’s focus on reducing its cash operating cost, in a bid to improve its financial performance, seems to have paid off well during the quarter.
However, a continuing decline in gold prices capped the revenues. Going forward, Caledonia is likely to avail a production upside from the surplus capacity of Blanket’s metallurgical plant.
With record operational results and a strong cash position to fund future exploration activities, Caledonia seems well positioned to develop the Blanket mine further.
Caledonia Mining sees earnings rise as cost-cutting drive accelerates By Jamie Nimmo November 13 2013, 7:12am
The ‘all-in’ cost fell to US$999 an ounce in the third quarter from US$1,211 in the previous quarterThe ‘all-in’ cost fell to US$999 an ounce in the third quarter from US$1,211 in the previous quarter
Caledonia Mining Corporation (LON:CMCL, TSE:CAL) welcomed a rise in quarterly earnings as the total cost of producing gold at its 49%-owned Blanket mine in Zimbabwe dropped below US$1,000 an ounce.
The ‘all-in’ cost fell to US$999 an ounce in the third quarter from US$1,211 in the previous quarter, which, combined with gold sales of 12,042 ounces, up from 11,588 ounces in the second quarter, helped earnings climb from 5.8 cents a share to 7.2 cents.
The lower average gold price achieved in the period of US$1,330 an ounce, from US$1,368 in the prior three months, resulted in a reduction in the royalty component of the all-in cost per ounce.
The company produced more gold in the quarter thanks to a higher realised grade of 4.03 grams per tonne (g/t) compared with 3.82 g/t in the second quarter and a slightly better gold recovery of 93.6%.
Revenues were lower than last year at C$16.6mln, but a tighter operation meant a net profit of C$4.6mln against a loss of C$9.2mln the year before.
Caledonia insisted it is on track to produce around 44,000 ounces of gold in 2013.
The company ended September with C$23.9mln in cash, having finished the same period last year with C$22.8mln.
Stefan Hayden, Caledonia’s president and chief executive, said: “The third quarter of 2013 presented continued challenges due to the prevailing lower gold price. “In response to the lower gold price, Caledonia, working with Blanket management, has introduced measures to increase mine production from approximately 1,030 tonnes per day (tpd) in Q1 2013, to approximately 1,075 tpd in the second quarter and to 1,110 tpd in the third quarter.” He added: “As a low-cost producer with a robust balance sheet, Caledonia is well-positioned to continue to implement its growth strategy, notwithstanding the current volatility in the gold price.”
Caledonia Mining Corporation ("Caledonia" or the "Company") (TSX:CAL)(OTCQX:CALVF)(AIM:CMCL) is pleased to announce that as part of the Company's long term strategy to maximize shareholder value, the board of directors has approved the implementation of a new quarterly dividend policy (the "Dividend Policy").
In 2014, the company intends to pay an annual aggregate dividend of 6 Canadian cents per common share, payable on a quarterly basis.
The first quarterly dividend of 1.5 Canadian cents per common share is expected to be declared in January 2014.
The Caledonia Board will continue to review dividends which will depend on the performance of the company and its capital investment requirements.
About Caledonia Mining
Caledonia is a mining, exploration and development company focused on Southern Africa. Following the implementation of indigenisation in Zimbabwe, Caledonia's primary asset is a 49% interest in an operating gold mine in Zimbabwe ("Blanket"). Caledonia's shares are listed in Canada on the Toronto Stock Exchange as "CAL", on London's AIM as "CMCL" and are also traded on the American OTCQX as "CALVF".
Caledonia is debt-free and at September 30, 2013 had gross cash of over $25 million outside Zimbabwe. Blanket mine is a low-cost producer: in the quarter to September 30, 2013,
Blanket's on-mine costs were US$554 per ounce of gold produced, its all-in sustaining cost was US$873 per ounce of gold and its all-in cost (which includes the investment in expansion projects) was US$999 per ounce.
Investment continues at Blanket with the objective of increasing production to 48,000 ounces of gold in 2014 and 52,000 ounces of gold in 2015.
Blanket also continues to make substantial investments in its exploration and development projects as a result of which gold production may, in due course, increase above 52,000 ounces per annum.
Cautionary Note Concerning Forward-Looking Information
Information and statements contained in this news release that are not historical facts are "forward-looking information" -- --fluctuations in commodity prices, delays in the development of projects and other factors.
Potential shareholders and prospective investors should be aware that these statements are subject to -- --is no guarantee that Caledonia will maintain the Dividend Policy.
Commodity-TV: Mark Learmonth, TSX: CAL at Mines and Money London 2013 Show last week -
Please find below an Update-Interview with Mark Learmonth, VP Business Development from Caledonia Mining. Recorded at the Mines and Money London 2013 Show last week -
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