Victoria Falls Stock Exchange-listed Caledonia Mining Corporation Plc posted a near 872% increase in profit after tax to US$16,45 million in the nine months ended September 30 2024, owing to increased revenue.
The increase was from US$1,69 million realised in the comparable period last year.
While the miner posted a jump in profit after tax for the period, the performance was subdued in the third quarter where profit after tax was down 42,44% to US$3,28 million from the same period in 2023.
In its financial results for the third quarter and nine months ended September 30 2024 released yesterday, Caledonia said revenues in the quarter and nine-month period were US$46,9 million and US$135,5 million, respectively.
In the 2023 third quarter and nine-month periods, revenues were US$41,18 million and US$107,65 million, respectively.
“Quarterly gold production of 18 992 ounces was lower than the 21 772 ounces produced in the comparable quarter [which established a new production record] due to lower grade and reduced metallurgical recoveries,” Caledonia said.
“Gold produced in the nine months was 56 815 ounces [nine months 2023: 55,244 ounces] at Blanket. Caledonia reiterates gold production guidance for 2024 of between 74 000 and 78 000 ounces at Blanket.”
Caledonia is a Zimbabwean-focused exploration, development and mining corporation which owns the gold-producing Blanket Mine, Bilboes mine and the Motapa and Maligreen gold mining claims, all situated in Zimbabwe.
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“On-mine cost guidance for 2024 at Blanket has increased to between US$950 and US$1 050 per ounce from the previous guidance of US$870 to US$970 per ounce due to higher labour and electricity costs,” Caledonia said.
“Management is pursuing initiatives to achieve cost reductions in both of these areas.”
On a quarterly basis, production costs were down 3,02% to US$21,08 million from the comparative 2023 quarter.
Meanwhile, on a nine-month basis, Caledonia reduced its costs to US$60,5 million for the period under review from US$61,02 million recorded over the comparative 2023 time-frame.
“A conditional sale agreement to sell the company which owns the 12,2MWac (megawatt alternating current) solar plant for $22.35 million, payable in cash, was signed on September 30, 2024. Upon completion of the sale, Caledonia will realise a profit on the US$14,3 million construction cost while Blanket will retain the exclusive supply of energy,” Caledonia said.
“US$2,3 million increase in inventory levels during the quarter to support preventative maintenance initiatives and reduce potential production delays. US$2,7 million planned in the last quarter of 2024.”
Caledonia chief executive officer Mark Learmonth said production for the quarter was in line with expectations and the miner remained on track to meet its production guidance for the year.
“We continue to explore ways to reduce on-mine costs at Blanket – particularly the cost of electricity and labour where several initiatives are being implemented and further measures are under consideration,” he said.
He said the miner’s cash reserves had also been negatively impacted by the currency devaluation in Zimbabwe during the quarter.
“Blanket remains a solid foundation for our growth profile in Zimbabwe; our exploration activities at both Blanket and Motapa continue to deliver encouraging results, playing to our future growth ambitions,” Learmonth said.
He added that the miner continued to progress on the revised feasibility study for the Bilboes sulphide project with a focus on capital allocation and expected to complete this in the first quarter of 2025.
