Staff Reporter
Caledonia Mining Corporation has posted robust second-quarter results for 2024, delivering a significant boost to Zimbabwe’s mining sector.
In a statement the CEO of Caledonia mining, Mark Learmoth reviewed that with higher gold production, stronger revenues, and increased resource reserves at its Blanket Mine.
“Caledonia’s gross revenue for the quarter jumped to $50.1 million, a 35% increase compared to $37.0 million in Q2 2023, driven by rising gold production and favourable prices. The Blanket Mine in Gwanda continues to lead the charge, producing 20,773 ounces of gold in Q2 2024, a notable 19% increase over the 17,436 ounces produced in Q2 2023.
We are thrilled with our performance this quarter, which reflects, not only our operational efficiency but also the significant potential of Zimbabwe’s mining sector. Blanket Mine’s continued output and the strategic development of the Bilboes Sulphide Project, we believe our growth aligns with Zimbabwe’s aspirations to become a mining powerhouse in Africa,” Learmoth added
Caledonia also reported that Blanket Mine’s reserves and resources also received a major boost.
“Blanket Mine has reserves which have increased by 106% with measured and indicated resources rising by 63%. This expansion extends the mine’s life to 2034, ensuring long-term stability in Zimbabwe’s gold production and enhancing investor confidence in the country’s mining prospects,” he said
In addition to Blanket Mine, Caledonia is advancing the Bilboes Sulphide Project.
“The Bilboes Sulphide project is expected to produce 1.5 million ounces of gold over the next decade, potentially at an AISC of $968 per ounce. A feasibility study is expected by Q1 2025, and the project is set to significantly increase Zimbabwe’s gold output once fully developed,” Learmoth reviewed
As the mining sector continues to expand, Learmoth emphasized the broader impact on Zimbabwe’s economy.
“The success of the Blanket Mine and our ongoing projects contribute directly to the country’s economic revival. Mining has the potential to provide sustainable jobs, attract investment, and enhance Zimbabwe’s status as a major player in the global gold market,” he said.
Meanwhile, Caledonia has also maintained its dividend of 14 cents per share, which was paid in April and July, with future payments to align with quarterly results. The company’s board indicated that it remains committed to balancing dividend pay-outs with investment opportunities that support further growth.
