Caledonia reports 6.2% year-on-year increase in June quarter production from Blanket

Blanket mine, Zimbabwe

CALEDONIA Mining Corporation reported a 6.2% increase in second (June) quarter gold production of 12,712 ounces compared to the corresponding quarter of the previous financial year – a performance described as outstanding by the firm’s CEO, Steve Curtis.

“To have achieved a 6.2% increase on the comparable quarter of 2019 during a period where our workforce and supply chains were disrupted is a performance of which every employee should be justifiably proud,” he said.

“Thankfully the virus has not affected our operations or the broader Zimbabwean gold mining sector too seriously although we remain vigilant.” Caledonia operates the Blanket mine which is situated near Gwanda in southern Zimbabwe.

Gold production for the first half of the firm’s 2020 financial year came in at 27,732 oz, a 12.5% year-on-year improvement. Caledonia maintained its 2020 full year production guidance of 53,000 to 56,000 oz. It was also on track with progress towards its target of 80,000 oz by 2022, it said.

In June, the company declared an 8.5 US cents per share payout for the second quarter which is 13% higher than the 7.5c/share it paid for the first quarter. It takes the total lift in the dividend payment to 24% since October.

“The board will review Caledonia’s future dividend distributions as appropriate while considering the balance between delivering returns to shareholders, pursuing the significant growth opportunities within Zimbabwe and maintaining a prudent approach to financial management,” said Curtis in June.

Caledonia Mining operates amid severe business restrictions in Zimbabwe including electricity shortages and a decline in the value of the currency. On Sunday, the country suspended its stock exchange.