Gold mining giant, Caledonia Mining Corporation plc (CMC), listed in the United States, the United Kingdom, and Zimbabwe, has reported a strong finish to 2024, with its Blanket Mine in Zimbabwe producing 76,656 ounces of gold for the year.
The company has announced its gold production results for the quarter and year ended December 31, 2024, as well as its guidance for 2025.
Caledonia’s Blanket Mine in Zimbabwe produced 76,656 ounces of gold in 2024, meeting its guidance of 74,000 to 78,000 ounces.
The company’s quarter four production was 19,841 ounces, with a record 797,000 tonnes milled for the year. The mine also achieved a record 89,727 tonnes hoisted in December, exceeding milling capacity.
Caledonia’s Chief Executive Officer, Mark Learmonth, expressed his pleasure with the company’s production results, stating that the strong mine production had resulted in a stockpile of 8,400 tonnes, providing a good starting point for 2025.
“I am pleased to report that we achieved our production guidance for the year, producing 76,656 ounces of gold. In 2024, we achieved a new record for tonnes milled of 797,000 tonnes, and in December we also set a record for hoisting 89,727 tonnes of ore, exceeding our milling capacity.
“As a result of the strong mine production, we closed the year with a stockpile of 8,400 tonnes which puts us in a good position to start 2025,” Learmonth stated in a trading update.
The company has announced a 2025 capital expenditure program of US$41.8 million, with US$34.9 million allocated to Blanket and US$5.8 million to Bilboes and Motapa. The investments aim to modernise operations and improve mining efficiency at Blanket.
Key projects include the development of 4,663 meters at Blanket, energy-saving initiatives, and the completion of the tailings storage facility. The company will also allocate US$5.8 million towards exploration at Motapa and the completion of the feasibility study at Bilboes.
Caledonia’s production guidance for 2025 is 73,500 to 77,500 ounces, with an on-mine cost forecast of US$1,050/oz to US$1,150/oz and an all-in sustaining cost (“AISC”) forecast of US$1,690/oz to US$1,790/oz.
The company’s cost guidance for 2025 reflects higher labour, HR, and IT expenses, as well as increased sustaining capital expenditure. The 2025 on-mine cost includes US$20/oz of environmental, social, and governance cost (“ESG”).
Learmonth stated that the company’s investment in Blanket has nearly doubled production and substantially increased the resource base, extending the mine’s life to 2034 based on reserves.
“Over the past seven years, our investment in Blanket has nearly doubled production and has substantially increased the resource base following which Blanket’s mine life now extends to 2034 based on reserves.
“The 2025 capital budget addresses immediate operational needs and includes strategic investments to enhance Blanket’s operating resilience and efficiency.
“We continue to make strategic investments in our people and technology which, in due course, I am confident will result in operating efficiencies.
“The transition of key functions to a new office in Bulawayo will provide synergies with our next mine, the Bilboes sulphide project,” Learmonth added.
“At Bilboes, we continue to progress the revised feasibility study for the Bilboes sulphide project, which is scheduled to complete later in the first quarter of this year.
“Following the publication, in November 2024, of encouraging exploration results at Motapa, the 2025 capital budget includes provision for further exploration on targeted sites with the most geological potential and the opportunity for early synergies with the Bilboes project.
“We are systematically building a mid-tier Zimbabwe focussed gold producer with multi-asset profitable production, whilst doing so with a focus on capital allocation and building per share value.”
Caledonia’s shares are listed on the NYSE American LLC, with depositary interests in its shares also traded on the Alternative Investment Market and Victoria Falls Stock Exchange.
