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Blanket MINE recorded an increased gold output for the nine months to September 30 2013 on the back of a higher realised grade and improved gold recovery in the third quarter.
Blanket Mine is 49 percent owned by the Toronto-listed Caledonia Mining Corporation while 51 percent is owned by indigenous Zimbabweans. The Gwanda-based gold mine became the first mine in the country to be fully indigenised after the central bank approved its
indigenisation transactions in October last year.
In a statement, Caledonia said production at Blanket increased by 1,4 percent to 34 109 ounces during the period under review, from 33 642 ounces in last year’s comparable period.
Blanket Mine recorded a higher realised grade of 4,03 grammes per tonne in the quarter compared to 3,82 grammes per tonne in the preceding quarter. The mine surpassed its target of 11 000 ounces in the third quarter to produce 12 042 ounces from 11 588 ounces in the second quarter.
Caledonia said the lower average gold price received in the third quarter resulted in a reduction in the royalty component of all-in sustaining and all-in cost per ounce.
Blanket Mine’s on-mine cost stood at US$554 per ounce while the all-in sustaining cost was US$873 per ounce. The all-in
cost for the third quarter was US$999 per ounce. The mine has been recording a bullish performance after posting 6,5 percent growth in gold production to 22 064 ounces in the first half of the year helped by a rebound in production.
Blanket retains its position as one of the lowest cost gold producers in Africa.
The company is anticipating production to almost double to 44 000 ounces by the end of this year and increase to 48 000 ounces in 2014 and 52 000 ounces by 2015.
Caledonia recorded a profit after tax of US$13,2 million in the nine months to September compared to US$3,2 million in the previous year. Production costs went up 12 percent from US$18,2 million in 2012 to US$20,4 million during the period under review. The firm’s revenue stood at US$50,5 million for the nine months, 8 percent less than the prior year’s figure of US$54,9 million.
Basic earnings per share attributable to Caledonia shareholders for the period was US20,8c from US10,1c last year while diluted earnings per share went up from US10c in 2012 to US20,8c during the period under review. Cash generated from continuing operations went down 40 percent from US$28,8 million in the previous year to US$17,3 million in 2013.
Blanket Mine paid a dividend of US$5,6 million to indigenous Zimbabweans in the period under review. The mining firm’s total assets stood at US$76,3 million up from US$68,4 million last year while liabilities were US$13,1
million down from US$15,4 million in 2012 confirming the company’s strong cash position.
The mining sector remains a key driver of the country’s economic growth, contributing more than 13 percent to gross domestic product, accounting for more than 50 percent of total exports. The mining sector is expected to grow by at least 16,9 percent this year.
Online Reporter