Blanket Mine in record quarterly gold output The Gwanda-based Blanket Mine has maintained a growth trajectory since the commissioning of the Central Shaft last year.

Enacy Mapakame-Business Reporter

Victoria Falls Stock Exchange (VFEX) listed resources group, Caledonia Mining Corporation’s Zimbabwe based gold miner, Blanket Mine, achieved a record quarterly production of 20 091 ounces, for the three months to June 2022.

This represented a 20 percent increase ahead of the 16 710 ounces recorded in the same period in 2021.

According to the group, gold production for the first half of 2022 was 38 606 ounces, which was approximately 29 percent above the 29 907 ounces produced in the first half of 2021.

This comes as the group is maintaining its gold production forecasts for the year of between 73 000 ounces and 80 000 ounces.

“Production in the first half of 2022 was excellent and exceeded our expectations. Production excludes an estimate of approximately 1 500 ounces of recoverable gold included in an ore stockpile which will be processed after the commissioning of additional milling capacity in the next few weeks.

“We have now achieved our quarterly target of 20 000 ounces and are on track to hit our annual production target of between 73 000 – 80 000 ounces of gold,” said chief operating officer Dana Roets.

The Gwanda-based Blanket Mine has maintained a growth trajectory since the commissioning of the Central Shaft last year.

The company has also indicated it will now focus on other areas of its growth strategy while evaluating investment opportunities, with a vision of becoming a multi asset gold producer.

One of the strategies is maintaining a strong dividend policy to maximise shareholder value includes a quarterly dividend policy which the board adopted in 2014.

According to the group, the board will consider future increases in the dividend as appropriate in line with its prudent approach to risk management.

During the quarter, the resources group announced a US14 cents quarterly dividend per share.

“Although the dividend continues to be a central part of our strategy, I am very excited with the opportunity that we have to evolve our business in Zimbabwe and de-risk it from being a single asset producer,” said chief executive officer Mark Learmonth.

This also comes as the group sees huge geological potential in Zimbabwe.

Last year the group announced the acquisition of Maligreen, one of the more significant exploration opportunities in the country although the firm has decided not to exercise the option to the Glen Hume Mine, open cast mines Connemara North.

Market watchers have also forecast increased earnings performance for the group during the current financial year supported by strong gold production, while also benefiting from its acquisitions and firm commodity prices.

Projected favourable gold prices are also expected to favour Caledonia’s earnings for the full year (FY22) and going forward.

Caledonia is also expected to further unlock shareholder value while raising capital in foreign currency for expansion programmes following its listing on the VFEX in December last year. By close of trade on Tuesday, Caledonia shares were pegged at US$13.

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