adminZIMBABWE focused gold miner Caledonia Mining’s 49 percent owned Blanket Mine produced 9,960oz in the first quarter of the year, the firm said. Although output was 2.7 percent lower than in the first quarter of 2014, it was in line with expectations. The Aim-listed company said the mine’s $670/ounce cash cost was also lower than expected, while all-in-sustaining costs, at $959/oz, were expected to fall as corporate administration costs and head office capital expenditure fell.
Caledonia sold 10,773oz of gold in the quarter, including 813oz brought forward from the preceding quarter.
“This is a very important year for Caledonia, as we start work in earnest on implementing the revised life-of-mine plan, which we presented to investors in November last year,” Caledonia president and chief executive officer Steve Curtis said.
He said the company, which recorded a net profit of $1.6 million, was currently sinking or deepening four shafts at its flagship mine, which would result in increases in production and earnings in the first quarter of 2016.
“We’ve sharpened our focus on reducing costs and we’re streamlining our corporate structure by terminating dormant companies and noncore assets.
“Operationally, the management team is focused on implementing the revised plan,” Curtis said. —Miningweekly.
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