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Caledonia Mining Corporation Reports 6% Increase in First Quarter Gold Production

Caledonia Announces an Additional Dividend!

Caledonia Mining Corporation, operator of Blanket Mine, recorded a 6% surge in gold production for the first quarter of 2024, totaling 17,050 ounces compared to the same period last year. This growth was attributed to enhanced tonnage and grade, alongside improved gold recovery rates.

Overall, the group’s gold output reached 17,476 ounces in the quarter, up from 16,141 ounces achieved in the corresponding period of the prior year. Notably, 426 ounces were contributed by the Bilboes Oxide Mine.

In April alone, Blanket Mine in Gwanda produced 7,956 ounces of gold, marking a significant increase from the 5,194 ounces produced in April of the preceding year.

Caledonia credited these positive outcomes to the ongoing deep-level drilling program at Blanket Mine, initiated in January 2024, aimed at assessing the continuity of mineralized zones in the Blanket and Eroica ore bodies. Results from the 13,280 meters of drilling conducted in 2023 are expected to be incorporated into a revised mineral resource statement, anticipated to extend the mine’s life.

Mark Learmonth, CEO of Caledonia, expressed satisfaction with the performance, emphasizing the encouraging findings from the underground exploration program. Learmonth highlighted plans for Bilboes’ development to optimize capital allocation and enhance shareholder value.

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Financially, the company reported a significant improvement, with gross profit doubling to US$13.8 million from US$5.8 million in the same quarter of the previous year, driven by higher gold revenue and reduced production costs.

EBITDA for the period stood at US$9.9 million compared to US$2.3 million previously, reflecting the robust financial performance.

Despite a foreign exchange loss of US$4.1 million due to currency volatility, adjusted earnings per share amounted to US26.9 cents, contrasting with a loss per share of 29.1 US cents in the prior period.

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