Zimbabwe-focused Caledonia Mining achieved a 3% year-on-year increase in production to 21 772 oz of gold for the three months ended September 30 – a new quarterly record for the company.

The Blanket mine contributed 55 244 oz of gold for the quarter.

Caledonia maintains its production guidance for the full-year at between 75 000 oz and 80 000 oz. It expects production for 2024 to be at a similar level.

Revenue for the quarter reached $41.2-million – also a record quarterly performance. Earnings before interest, taxes, depreciation and amortisation for the quarter, however, decreased by 2.5% year-on-year to $15.9-million.

Caledonia, nevertheless, declared its fortieth quarterly dividend of $0.14 a share.

"Production at Blanket in the quarter was excellent. Blanket is now operating as expected, having achieved record gold production in the quarter. Management is exploring initiatives to further improve mining efficiencies and manage operating costs,” says CEO Mark Learmonth.

He adds that the Bilboes oxide mine has been a disappointment and as a result of operating losses incurred at Bilboes it has been returned to care and maintenance with effect from October 1. From October onwards, the monthly holding cost of Bilboes is expected to be significantly reduced to about $200 000 a month. 

“In due course, the remaining oxide material will be mined and processed alongside the sulphide ore. This outcome has no bearing on the viability of the much larger sulphide project, which was the reason for acquiring Bilboes,” he assures shareholders.

He adds that the company continues to work on a revised feasibility study for the sulphide project at Bilboes, which will consider updated commercial assumptions and will inform the most judicious way to commercialise the project with the objective of providing the best returns for investors.