Caledonia Mining Company has registered a 16% jump in profits to US$54.1 million after 2021 gold output hit a new record, in a year the company describes as a “turning point”.
Gold production at Blanket Mine rose to 67,476 ounces from 57,899 ounces, as it benefitted from increased tonnage after the completion of the new shaft.
The output came in at the top-end of the company’s projections and is the highest ever recorded at the mine.
“Operationally, the last 12 months have marked a turning point for the business. The Central Shaft has been a huge project costing approximately US$67 million, all funded through internal cashflow, and I am delighted that it was commissioned in the first quarter of 2021,” CEO Steve Curtis said Thursday.
Revenue grew from US$100 million in 2020 to US$121 million last year.
Gross profit for 2021 was US$54.1 million, 16% higher than 2020. Caledonia sees even further growth in production this year.
Guidance for 2022 is in the range of 73,000 to 80,000 ounces and 80,000 ounces for next year, which would be 38% more gold than Blanket produced in 2020.
The company has started installing a solar plant near Blanket to counter poor quality ZESA power supply.
Says Curtis: “To improve the quality and security of Blanket’s electricity supply, minimise our environmental footprint and help create a more sustainable future for our business, Caledonia is constructing the first phase of a 12 MWac solar plant that will provide approximately 27% of the average daily electricity demand at Blanket Mine.”
Part of the statement reads:
Caledonia Mining Corporation Plc (“Caledonia” or the “Company”) announces its operating and financial results for the year ended December 31, 2021 (the “Year”).
Further information on the financial and operating results for theYear and the quarter ended December 31, 2021 (the “Quarter” or “Q4”) can be found in the Management Discussion and Analysis (“MD&A”), and the audited financial statements which are available on the Company’s website and which have been filed on SEDAR.
2021 Financial Highlights
•Gross revenues of $121 million (2020: $100 million).
•Gross profit of $54.1 million(2020: $46.7 million).
•EBITDA of $46.4 million(2020: $45.4 million).
•On-mine cost per ounce[1]of $742 (2020: $744).
•Normalised all-in sustaining cost per ounce1 (i.e. excluding the effect of the export credit incentive and its successor scheme) of $990(2020: $967).
•Adjusted earnings per share1 of 226 cents (2020: 204 cents).
•Net cash from operating activities of $30.9 million(2020: $30.9 million).
•Net cash and cash equivalents of $17.2 million(2020: $19.1 million).
•Total dividend paid of 50 cents per share, a 49 per cent increase from 2020.
Operating Highlights
•67,476 ounces of gold produced in the Year (2020: 57,899 ounces); record annual production at Blanket Mine.
•The Central Shaft was commissioned in the first quarter of 2021 and the final stages of underground development and infrastructure are now being completed.
•During Q4, Caledonia completed the acquisition of the mining claims at Maligreen in the Zimbabwemidlands which is estimated to host a NI 43-101 compliant inferred mineral resource of approximately 940,000 ounces of gold in 15.6 million tonnes at a grade of 1.88g/t[2].
Post Year-End events and Outlook
•Regrettably, a fatal accident occurred on February 21, 2022. The Directors and management of Caledonia and Blanket express their sincere condolences to the family and colleagues of the deceased.
Caledonia takes the safety of its employees very seriously and, accordingly, measures have been taken to reinforce adherence to prescribed safety procedures.
•2022 gold production guidance of between 73,000 and 80,000 ounces.
•Progress on the 12MWac solar plant has resumed following delays arising from the combined effects of COVID-19 and difficulties with the supply chain.
The plant is expected to provide approximately 27 per cent of Blanket’s total daily electricity demand, improve Blanket’s security of electricity supply and reduce its environmental footprint.
It is anticipated that the project will be commissioned in June 2022.
•Following the installation of a further autotap transformer in December 2021, Blanket’s consumption of diesel to generate electricity has substantially reduced.
-Newzwire
