Victoria Falls Stock Exchange listed gold mining giant Caledonia Mining Corporation Plc (CMCL) has reported its third-quarter 2024 financials, revealing a mixed bag of results, with increased gross profit and decreased earnings per share, amidst ongoing efforts to optimize operations.
The company has announced its operating and financial results for the quarter and nine months ended September 30, 2024.
Caledonia reported a revenue of US$46.9 million for the third quarter of 2024, representing a slight decrease from the previous year. The company’s nine-month revenue stood at US$135.5 million.
Gross profit for the quarter increased to US$19.3 million, up from US$14.1 million in the comparable quarter of 2023, driven by higher gold prices and lower costs at the Bilboes oxide mine.
On-mine cost per ounce for the quarter rose to US$1,056, compared to US$928 in the third quarter of 2023, primarily due to lower ounces sold and higher production costs at Blanket.
The company’s all-in sustaining cost (AISC) per ounce for the quarter was US$1,501, up from US$1,268 in the comparable quarter, driven by lower ounces sold, higher on-mine costs, and increased cash-settled share-based payment expenses.
Basic IFRS earnings per share (EPS) for the quarter decreased to 12.0 cents, down from 24.1 cents in the third quarter of 2023.
Adjusted EPS for the quarter stood at 26.2 cents, down from 29.9 cents in the comparable quarter.
Gold production for the quarter totalled 18,992 ounces, down from 21,772 ounces in the comparable quarter of 2023.
Gold produced in the nine months ended September 30, 2024, increased to 56,815 ounces, up from 55,244 ounces in the same period of 2023.
Caledonia reiterated its gold production guidance for 2024, expecting to produce between 74,000 and 78,000 ounces.
The company signed a conditional sale agreement to sell the subsidiary owning the 12.2MWac solar plant for US$22.35 million.
Caledonia is increasing its focus on growth opportunities, including the Bilboes sulphide project and exploration activities at Motapa.
Caledonia said it aimed to maintain production at Blanket within the targeted range for 2024 and 2025.
The company has plans to complete the Bilboes sulphide project feasibility study in the first quarter of 2025.
Progress is being made on development funding solutions to commence development of the sulphide project.
Mark Learmonth, Chief Executive Officer of Caledonia said: “We remain committed to improving our safety performance and delivering a zero-harm environment.”
“We continue to carefully manage our cash flows and working capital… Blanket remains a solid foundation for our growth profile in Zimbabwe.”
Caledonia’s board has declared a dividend of 14 cents per share, payable on December 6, 2024.
