Caledonia Mining reaches record quarterly production at Blanket

Caledonia Mining announced gold production from the Blanket Mine in Zimbabwe for the September quarter on Wednesday, reaching a record of 21,120 ounces.

The AIM-traded firm said that was an increase of 11% on the 18,965 ounces produced in the same quarter a year ago.

Gold produced in the nine months ended 30 September totalled 59,726 ounces - 22% more than the 48,872 ounces produced in the same nine month period in 2021.

The company reiterated its gold production expectations for 2022, “at the top” of guidance for between 73,000 and 80,000 ounces.

“We are delighted that this quarter we have once again set a new production record at Blanket and for the last three quarters we have achieved our quarterly target ounces,” said chief operating officer Dana Roets.

“This has been an excellent year, the ramp-up in production towards our yearly target of 80,000 ounces has met our best estimate and, as a consequence, we are on track to hit the top end of our production guidance of between 73,000 and 80,000 ounces.

“We continue to work hard on completing the transaction for Bilboes and in the meantime will restart the oxide operations with the expectation that it will return to profit during the second quarter of 2023.”

Roets said Caledonia was “optimistic” on the geological prospectivity in Zimbabwe, and was continuing to evaluate other investment opportunities in the country with its long-term vision to become a multi-asset gold producer.

“This is an exciting time for the company, and we look forward to continuing to update shareholders of our progress.”

At 1037 BST, shares in Caledonia Mining Corporation were up 0.39% at 908.5p.

Reporting by Josh White at Sharecast.com.