Caledonia H1 profit doubles as gold price rises

Caledonia H1 profit doubles as gold price rises

HARARE, August 12 (The Source) – Caledonia Mining Corporation’s net profit more than doubled in the first half-year to June on higher gold output at its Blanket Mine in Gwanda and improved mineral prices.

Net profit was $4,1 million compared to $1,5 million over the same period last year. It produced 23,332 ounces in the half, at an average price of $1,211/oz compared to 20,360 at $1,186 previously.

Earnings per share grew 144 percent to 8,6 cents from 4,1 cents. Caledonia, which owns 49 percent of Blanket Mine, successfully moved its registration from Canada to tax haven Jersey, Channel Islands, on March 19 this year to avoid charges on dividends.

Jersey is one of seven inhabited islands making up the Channel Islands and, along with Guernsey, is a British dependency.

Caledonia’s results for the six months was largely as a result of a stellar performance in the second quarter to June 30.

Gold output in the quarter was 12,510oz, up from 10,401oz over the same period last year. Net profit at $3,6 million dwarfed the $266,000 over the comparable period last year. Costs at $936/oz were nearly a $100 less than the $1,030 previously.

“A new production record was largely the result of improved underground logistics and increased mine flexibility as a result of the implementation of the Revised Investment Plan at Blanket Mine,” said chief executive Simon Curtis.
The miner has targeted 50,000oz for the full year.

As at June 30, Caledonia had $10,5 million in cash holdings, lower than the $19,1 million last year as it continues to invest in its mining operations.