Caledonia posts higher than expected earnings
Harare, (New Ziana) – Caledonia Mining Corporation Plc (Caledonia) shareholders will be smiling all the way to the bank after the gold miner announced it will post higher than expected earnings for 2019.
Caledonia, which operates the Blanket gold mine in Gwanda, said the above than expected results were due to the combined effects of the continued strengthening of the gold price, higher than expected production for 2019, and lower than expected operating costs.
Last year, Blanket Mine’s total gold production was approximately 55 182 ounces, ahead of revised production guidance of 50 000 to 53 000 ounces.
“As a result of these factors, adjusted earnings per share (before net realised and unrealised foreign exchange gains) for 2019 are expected to be in the range of US$1.55 to US$1.75 per share compared to company guidance in early 2019 of US$0.87 to US$1.17,” Caledonia said in a market update.
The miner said earnings per share on an International Financial Reporting Standards basis, which included net realised and unrealised foreign exchange profits, were expected to be approximately US$3.80 to US$4 per share.
The firm’s chief executive, Steve Curtis attributed the results to hard work.
“This is down to the hard work and dedication of our exceptional team
operating at Blanket Mine not least in how they have successfully
addressed challenges in the year such as the variable power supply and
grade fluctuations,” he said.
“With these challenges addressed, an excellent start to 2020 and with the development of the central shaft continuing on time and record quarterly production in the fourth quarter, we look forward to an exciting year ahead.”
Caledonia Mining Corporation Plc is a mining, exploration and development company focused on Southern Africa.
Its shares are listed on the Toronto Stock Exchange, New York Stock Exchange, and also has depository interests in the shares traded on the London Stock Exchange’s AIM.