(NewsDirect)
Caledonia Mining Corporation PLC chiefexecutive Mark Learmonth takes Proactive's Stephen Gunnion throughthe company's first-quarter performance.
Caledonia increased gold production fromover 16,000 ounces in the same period in 2023, to 17,500 ounces. Thisboost in production, coupled with a favourable gold price, resulted ingross profit rising from under $6 million to nearly $14 million.However, despite a reported net profit of $2.1 million, this figureincluded a substantial foreign exchange loss, specifically due to thedevaluation of the Zimbabwean dollar. Adjusted for this loss, theearnings per share (EPS) shifted from a loss of $0.29 in Q1 of 2023 toa profit of $0.27 in Q1 of 2024.
Learmonth also addressed issues from the previous year, notablythe Bilboes project, which had underperformed due to low-grade ore andresulted in its placement on care and maintenance from October 2023.Additionally, the company has managed a reduction in all-in sustainingcosts from $1,400 an ounce to the mid-$1200s. Learmonth expressed hoperegarding the new Zimbabwean currency, the ZiG, backed by gold, whichwas introduced in early April 2024 to stabilise and potentiallyappreciate the financial landscape.
Furthermore, the companyannounced a significant resource update, indicating a doubling ofreserves and a 60% increase in measured and indicated resources. Thelife of the mine for the Blanket Mine has now been extended to 2034and potentially into the 2040s with inferred material.
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