LEADING research firm Inter Horizon Securities (IH) has projected that revenue at the Victoria Falls Stock Exchange-listed Caledonia Mining Corporation will grow by 17% to US$171 million in the financial year 2024 (FY24) driven by high production and firming gold prices.
In the financial year 2023, Caledonia saw a revenue of US$146 million, up 3% on the prior period with US$5,70 million attributable to the Bilboes Oxides project.
Margins are expected to improve in the year, with earnings before interest, taxes, depreciation and amortisation (EBITDA) firming up to 43,3%
“Amid sustained global economic turmoil, gold prices have continued to rally—setting a record high of US$2 350 per ounce (oz) and also representing a 13% movement YTD [year-to-date],” researchers said in their analysis of Caledonia’s financial year 2023 (FY23) results.
Bloomberg consensus estimates have put prices to US$2 645 per oz by 2027, giving resilience to top line growth for gold producers. While Caledonia experienced significant setbacks in FY23, IH foresaw alleviation of some key issues in the current year.
“As per management reports, running costs at Bilboes subsequent to it being placed under care and maintenance have fallen from US$1 million per month to US$0,2 million,” it said.
“However, work on the much larger scale Bilboes Sulphides project is still ongoing in the background with the existing feasibility study now at an advanced stage.”
Indicative gold production at Blanket Mine for the year has been set at between 74 000 and 78 000 ounces at an on-mine cost. – (Newsday)
