Record production in 2021 boosts Caledonia’s profits

NYSE- and Aim-listed Caledonia Mining Corporation reported a 16% year-on-year improvement in gross profit to $54.1-million for the year ended December 31, 2021, a year which CEO Steve Curtis said marked a turning point for the company.

Adjusted earnings a share amounted to 226c, against adjusted earnings a share of 204c in 2020.

The company increased its dividend by 49% year-on-year to $0.50 apiece, with remaining cash and cash equivalents on hand of $17.2-million.

Caledonia produced 67 476 oz of gold in the year under review, marking an almost 10 000 oz increase on 2020’s output of 57 899 oz, and a record yearly production performance for the Blanket mine, in Zimbabwe.

The company reports that its Central Shaft was commissioned in the first quarter of the reporting year, with the final stages of underground development and infrastructure now being completed.

Curtis says the new shaft will enable the company to produce between 73 000 oz and 80 000 oz of gold this year, and more than 80 000 oz from next year.

Meanwhile, near the end of 2021, Caledonia acquired mining claims at Maligreen, in the Zimbabwe Midlands, which is estimated to host 940 000 oz of gold.

Curtis notes the immediate focus on this asset is to improve the confidence level of the existing resource base and re-assay historical drill cores.

Thereafter, Caledonia will prepare a feasibility study to commercialise the existing resource before engaging in further exploration along strike and at depth of the prospect.

Meanwhile, the company continues to progress with the development of a 12 MW solar plant at the Blanket mine.

The plant is expected to provide 27% of the mine’s total daily electricity demand, as well as to reduce the mine’s environmental footprint. The project will be ready for commissioning in June. – (Mining Weekly)