Caledonia Mining swings to profit during opening quarter of 2024

(Alliance News) - Caledonia Mining Corp PLC on Monday reaffirmed its production guidance for 2024, following a swing to profit in the first quarter thanks to rising revenue.

The Zimbabwe-focused gold producer swung to a pretax profit of USD5.3 million during the three months that ended March 31 from a loss of USD768,000 last year. Earnings before interest, tax, depreciation and amortisation was USD9.9 million, up from USD2.3 million a year before.

Revenue rose 31% to USD38.5 million from USD29.4 million.

Chief Executive Officer Mark Learmonth said: "The first quarter of 2024 got off to a strong start with an increase in production and profit, supported by a favourable gold price. This has continued through April and into May."

Caledonia Mining produced 17,476 ounces of gold, of which 17,050 ounces came from the flagship Blanket project, up 8.3% from 16,141 ounces last year. On-mine cost was USD993 per ounce, steady with USD991 a year before, while all-in sustaining cost was USD1,296 per ounce, down from USD1,412.

Looking ahead, the company maintained its guidance for the year of between 74,000 and 78,000 ounces of gold, at an on-mine cost for Blanket of USD870 to USD970 per ounce and AISC of USD1,370 to USD1,470. Production is therefore expected to be largely unchanged from the 75,416 ounces produced in 2023.

Caledonia Mining shares were up 1.1% to 824.00 pence each in London on Monday morning.

By Elijah Dale, Alliance News reporter

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