Caledonia Mining Corporation recorded gross profit of US$9.2 million at its Blanket Mine in the financial results for the second quarter ended June 30, 2020 representing a 30 percent increase from the US$7.0 million from the corresponding quarter in 2019.
Commenting on the results, Caledonia Mining Corporation, Chief Executive Officer (CEO) Steve Curtis expressed delight saying the positive figures were a result of initiatives implemented in 2019.
“I am delighted by Blanket Mine’s continued strong financial and operating performance in the second quarter of 2020. The management initiatives which were implemented in 2019 have continued into 2020 and have resulted in a 12.4 percent increase in gold production in the first six months of 2020 compared to the same period of 2019,” said Curtis.
The company recorded gross revenue of US$22.9 million, a 39 percent increase on the US$16.5 million achieved in the second quarter of 2019.
13 499 ounces of gold were produced in the quarter with 27 732 ounces produced in the first half. This marks an increase from 12 712 ounces and 24 660 ounces respectively produced in the corresponding periods.
Despite COVID 19 interrupting operations in April, Curtis indicated that production above expectations experienced further into the quarter compensated the reduced output.
“This continued improvement is despite the challenges we encountered as a result of the COVID-19 pandemic. Production in the initial 3-week lockdown in early April was 7 percent below target but was better than planned in the remainder of the quarter. Therefore, production for the entire Quarter was only 1.2 percent below plan while production for the first six months of 2020 was 2.5 percent above plan,” he said.
