Caledonia Mining reports record annual production at Blanket

Caledonia Mining reported record annual production at the Blanket Mine in Zimbabwe on Monday, in its quarterly gold production update.

The AIM-traded firm said total gold production during 2020 was 57,899 ounces, which was at the top end of its revised increased guidance.

Around 15,012 ounces of gold was produced during the fourth quarter.

Caledonia said gold production for 2021 was expected to be between 61,000 and 67,000 ounces.

“I am delighted by Blanket Mine's continued strong operating performance in the quarter and that we were able to hit the top end of our revised annual production guidance,” said chief executive officer Steve Curtis.

“Despite the challenges of the Covid-19 pandemic, 2020 was a record year for Caledonia operationally, and we are on track for commissioning of Central Shaft to be completed in the first quarter of 2021.

“In December we also announced that we had entered into option agreements on two properties in Zimbabwe, delivering on our strategy of organic growth, while increasing the dividend for the fourth time at the start of January to 11 cents a share, creating genuine value and returns for our shareholders.”

At 0905 GMT, shares in Caledonia Mining Corporation were up 3.32% at 1,214p.