adminIn a statement accompanying the Canada-based company’s 2011 fourth quarter and annual results, the mining house said it posted a profit equivalent to $12,144 million in the year ending 31 December 2011 compared to $1,456 million the previous year.
Production in the fourth quarter increased by 8,1 percent to 10 533oz from 9 743oz in the third quarter.
Although the company has copper mining operations in Zambia, its cash cow is Blanket Mine in Gwanda.
Caledonia, which had a turnover of more than $55 million, said it paid $13,6 million to the Government in 2011 in direct and indirect taxes, royalties, licence fees, levies and other payments against $2,2million the previous year.
Caledonia last month agreed to sell off 51 percent of its shareholding in Blanket Mine to fulfill the local indigenisation and empowerment regulations. The shareholding to be disposed of is valued at just over $30 million.
Caledonia president and chief executive Mr Stefan Hayden said the strong performance in the last quarter was a culmination of a successful year.
He said Blanket Mine had reduced production costs from $751 an ounce in 2010 to $581 an ounce last year to become one of the most cost efficient gold mines in Africa.
“I am delighted to report that the fourth quarter of 2011 was the culmination of a highly successful year for Caledonia, during which gold production at Blanket Mine in Zimbabwe more than doubled.
“Production has now increased in each of the last seven quarters.
“The cash cost of production was significantly reduced for the year as a whole to $581/oz, compared to $751/oz in 2010. In the fourth quarter alone, the cash cost of production was further lowered to $521/oz.
“This reduction, which is in line with our earlier guidance, was due to improved operating efficiency and the benefits of economies of scale.
“I believe that Blanket Mine is now one of the most efficient and lowest cost gold producers in Africa,” he said.
He said once the indigenisation plan was implemented in the second quarter of this year Blanket would be financially and strategically well-positioned to progress its exploration and development projects.
“Depending on the outcome of these projects, Blanket may, in due course, be able to increase production above 40 000 ounces of gold per annum.
“The Blanket crushing and metallurgical plant has surplus capacity and any incremental ore could be treated without any requirement for new investment,” Mr Hayden said.
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