adminCaledonia Mining Corporation to an US$8,3 million profit in the third quarter of 2011.
The company also revealed that a 15 percent increase in gold prices on global markets and reduced costs had helped the firm post remarkable results.
Average price received per ounce of gold sold during the quarter was US$1 737 compared with US$1 241 in the quarter last year, said Caledonia. .
The company said yesterday gold output at Blanket rose to 9 700 ounces from 8 200 ounces in the preceding quarter and 4 900 ounces in the same period last year. This represents the sixth consecutive output growth for the mine. The company said cash operating costs at the Blanket Mine in the quarter stood at US$583 per ounce compared with US$585 in the preceding quarter and US$651 recorded in the comparable quarter last year.
At September 30, 2011 the Caledonia had no debt except current trade payables (September 30, 2010 US$1 660 000) and had cash and cash equivalents of US$6 775 000 (net debt as at September 30, 2010 US$223 600).
“The culmination of the investment programmes at the Blanket Mine over the past 30 months has substantially transformed Caledonia’s financial and operating performance as demonstrated by these third quarter results,” he said.
Commenting on the solid results, Mr Stefan Hayden, president and chief executive officer, said: “Caledonia Mining has had, as forecast, a very strong performance for the third quarter and profits for the third quarter of 2011 exceeded profits for the entire first half of 2011.
“Blanket Mine in Zimbabwe achieved its target annualised production level of 40 000 ounces of gold for the last two months of the third quarter and this level of production was sustained in October.
“The increase in production was achieved following completion of work to address remaining constraints to underground production and included commissioning of a new ore pass at the end of July,” he said.
During the third quarter period Blanket Mine made payments of approximately US$3,8 million to the Government in respect of direct and indirect taxation, royalties and licence fees among others. Blanket Mine which once came under the spotlight for failing to comply with the country’s indigenisation laws, has since regularised its standing by submitting a revised plan. Discussions are still ongoing with the Government to ensure full compliance with the regulations.
The Canadian company said work on the four-hole drilling programme at the Konkola West area of the Nama base metals project in Zambia was continuing.
Last month, three holes had been completed and the drill rig had been moved to the fourth hole. The conclusions from this programme will be provided when management has received and evaluated all the results.
Blanket’s Occupational, Safety and Health policies and procedures were audited by the NSSA as a result of which the mine was awarded the gold medal in the mining and quarrying sector and bronze across all industrial sectors.
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