Zimbabwe News and Internet Radio

Blanket Mine quarterly production up 24 percent

By Oliver Kazunga

Caledonia Mining Corporation Plc’s local unit, Blanket Mine, increased gold output by 24 percent to 16 710 ounces in the quarter ended June 30, compared to 13 499oz in the corresponding period last year.

Blanket Mine workers process gold
Blanket Mine workers process gold

The resources group’s management remains upbeat that Blanket will maintain this growth trajectory and its full year production guidance of between 61 000 and 67 000oz while on track to hit the target of 80 000oz from next year.

In a production update for the quarter under review released yesterday, Caledonia said: “A total of 16 710oz of gold were produced in the quarter, 24 percent higher than the 13 499oz produced in the second quarter of 2020 and a new production record for a second quarter.”

A total of 29 907oz were produced in the first half of this year and this is eight percent higher than the 27 732oz produced in the first half of last year.

The group’s chief executive officer, Mr Steve Curtis, said over 165 000 tonnes were milled in the quarter under review, which is a new record for Blanket and reflects the contribution of the Central Shaft, which is now operational.

“Higher production, lower costs and a higher gold price resulted in a significant increase in the underlying profitability of our business with gross profit increasing by 51 percent compared to the comparable quarter in 2020,” he said.

“Net profit was adversely affected by the impairment of the Glen Hume exploration asset following the board’s decision not to proceed further with this project because the property does not meet Caledonia’s strategic requirements in terms of size, grade and width.” The Chronicle