Aim-listed Caledonia Mining says it is on track to achieve full-year production guidance of 74 000 oz to 78 000 oz at its Blanket gold mine, in Zimbabwe.

The company notes that the mine produced 20 773 oz of gold in the quarter ended June 30, compared with the 17 436 oz produced in the second quarter of 2023.

The mine achieved an on-mine cost of $906/oz for the quarter, compared with an on-mine cost of $915/oz in the second quarter of 2023.

Meanwhile, Caledonia reported gross revenues of $50.1-million for the quarter, compared with $37-million in the second quarter of 2023, owing to higher gold production and a higher gold price.

Further, its gross profit of $22.9-million was 109.8% higher than the $10.9-million gross profit reported in the second quarter of 2023, owing to higher gold revenue and lower production costs.

The company also reported earnings before interest, taxes, depreciation, and amortisation – excluding depreciation and net foreign exchange gains and losses – of $22.5-million in the quarter ended June 30, compared with $9.6-million in the second quarter of 2023.

Consolidated all-in sustaining costs decreased by 7.7% to $1 253/oz, owing to the lower on-mine cost per ounce, offset by higher sustaining capital expenditure and increased administrative expenses.

“This has been an excellent quarter, during which profitability benefitted from higher gold production, a higher gold price and lower costs per ounce. With today’s results, we remain on track to achieve our production and cost guidance for the year,” says CEO Mark Learmonth.

He notes that, during the quarter under review, the board took the decision to proceed with the single-phase development option for the Bilboes sulphide project, in Zimbabwe.

The project has the potential to almost triple Caledonia’s gold production to over 200 000 oz/y, in combination with production from Blanket.

The group is progressing a new feasibility study on the project, which is expected to be delivered during the first quarter of 2025.

“Caledonia remains well positioned to deliver continued returns to shareholders. I am very excited by the opportunity we have to evolve our business, which we believe will generate significant long-term shareholder value,” says Learmonth.