Caledonia’s net profit trebles to $3,1 million on increased output in Q3

HARARE,November 13 (The Source)- Caledonia Mining Corporation said its after tax profit increased almost three times to $3,1 million in the third quarter to September compared to $1,1 million in the same period last year on increased gold production.

The company said gold production at its Blanket Mine was up 15 percent on the previous quarter to 14,396 ounces as a result of higher grades, setting a new quarterly record.

Gross profit increased to $7,2 million from $6,8 million in the comparable period last year attributable to higher production and sales, offsetting a lower gold price. The average price of gold fell from 1,312 per ounce last year to $1,265 per ounce.

Cumulatively, gross profit increased to $17,9 million in the 9 months to September compared to $16,6 million achieved in the same period last year.

All-in sustaining costs(AISC) per ounce declined to $773 per ounce compared to $855 per ounce in the previous quarter and $1,004 per ounce in the third quarter of 2016.

Cash from operating activities increased from $7,1 million in the same period last year to $10,1 million.