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Caledonia Mining on track to hit full-year production guidance after solid first quarter

Published: 05:07 09 Apr 2018 EDT

gold bars and dollar bills
The gold price has remained steady so far in 2018 at around US$1,320 an ounce

Gold producer Caledonia Mining Corporation PLC (LON:CMCL; NYSE:CMCL; TSE:CAL) has maintained its full-year production guidance after a solid start to 2018 at its 49%-owned Blanket mine in Zimbabwe.

The company – which is listed in London, New York and Toronto – produced 12,924 ounces of gold in the first quarter of the year, in line with expectations and consistent with what it produced in the same period of 2017.

READ: Caledonia Mining to see substantial earnings increase from Zimbabwe tax boost

As a result, Caledonia in on track to achieve its full-year production guidance of between 55,000-59,000oz of the yellow metal.

Looking further ahead, the miner also told investors it is making good progress towards hitting its long-term target of 80,000oz by 2021.

“Production in the first quarter of 2018 is consistent with the level achieved in the corresponding quarter of 2017 as Blanket remains on track to deliver its full year guidance of 55,000 to 59,000oz,” said chief executive Steve Curtis.

“Whilst production is in line with expectations our safety performance during the quarter was very disappointing as we announced during the quarter a fatal accident at Blanket.”

Curtis added: “The sinking of the central shaft continues to progress according to plan and within budget, with the shaft currently at a depth of 990m. We look forward to commencing production from the central shaft in 2020 which is expected to deliver the company's growth plan to achieve 80,000oz by 2021.”

Caledonia shares were down 0.8% to 590p on Monday morning.

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on 01/15/2024