Caledonia Mining posts record quarterly gold output, guides towards upper end of 2021 production guidance

Caledonia Mining Corp PLC reported record quarterly gold output from the Blanket mine in Zimbabwe and narrowed its production guidance for 2021 towards the upper end of its previous range.

It produced 18,965 ounces of gold during the quarter to end September, the second consecutive quarterly record, up 25% on the 15,155 ounces produced in the corresponding quarter of 2020. 

READ: Caledonia Mining posts record quarterly gold output from Blanket Mine, ups dividend

“I am delighted that this quarter we have once again set a new production record as Blanket begins to reap the rewards of the substantially increased production capacity following the commissioning of the Central Shaft in March 2021,” said chief executive Steve Curtis.

“The ramp-up in production towards our quarterly target of 20,000 ounces has met our best estimate and, consequently, we have been able to narrow our annual production guidance from 61-67,000 ounces to 65-67,000 ounces.”

The AIM-listed company said it remains on track to achieve its production target of 80,000 ounces in 2022. 

“When we acquired Blanket from Kinross in 2006 our production in the third quarter of 2006 was 6,475 ounces – the company has come a long way since then,” said Curtis.

“Central Shaft provides the infrastructure required to access the deeper resources at Blanket for many years before any new vertical shaft deepening needs to be considered. The extra hoisting capacity provided by the shaft is the foundation to the production build-up to 80,000 ounces from next year onwards.”

Gold production for the nine months to end September 2021 rose 14% on the year-earlier period to 48,872 ounces.

Story by ProactiveInvestors