Caledonia PAT up 19 pct to $1,8 million on increased production

Caledonia PAT up 19 pct to $1,8 million on increased production

HARARE, November 15 (The Source) – Caledonia Mining Corporation has posted a 19 percent increase in after-tax profit from $1,5 million to $1,8 million in the three months to September 30 driven by increased output and firmer commodity prices.

Gold prices during the quarter at $1,312 per ounce were higher compared to $1,106 per in the prior period while production rose by 23 percent to 13,428 ounces.

Revenue increased by 45 percent to $17,6 million due to higher sales and gold prices.
Caledonia has produced 36,760 ounces in the nine months against its yearly target of 50,000oz and is targeting to mine 60,000oz in 2017.

“We continue to see the benefits of our investment in the mine over the past two years. As we approach the middle of the investment programme at Blanket, we are increasingly confident that the growth in production and declining cost trends will continue as we ramp up production to 80 000 ounces by 2021,” said chief executive Steve Curtis in a statement..

All in sustaining costs marginally decreased by 3,6 percent to $969,000, while adjusted earnings per share increased by 59 percent to 4.4 cents.

“Delivering increased ounces at a lower unit cost, into a stronger gold price, has resulted in adjusted earnings per share for the third quarter that are 59 per cent higher than quarter three of 2015,” added Curtis.

Total assets stood at $85 million from $72,8 million as at December 31 in the prior year.