ZSE-listed gold-mining concern, Caledonia Mining Corporation expects higher than expected earnings for 2019 on account of improved gold price, enhanced production and capped operating costs.
This is despite earlier projections of leaner earnings for the period.
The Company will publish its 2019 full year results on or around March 20, 2020.
“As a result of these factors, adjusted earnings per share (before net realised and unrealised foreign exchange gains) for 2019 are expected to be in the range of US$1.55 to US$1.75 per share compared to company guidance in early 2019 of US$0.86 to US$1.17 per share,” the Company said in a statement.
“Earnings per share on an International Financial Reporting Standards (IFRS) basis which includes net realised and unrealised foreign exchange, profits is expected to be approximately US$3.80 to US$4.00 per share,” the statement further read.
This follows the Company’s recent increase of its stake at Blanket Gold Mine in Zimbabwe to 64% through the acquisition of an additional 15% share from Fremiro Investments.
“I am delighted by the excellent performance of the Blanket Mine, particularly in the latter stages of 2019, which, combined with the strength of the gold price, has resulted in us comfortably exceeding expectations for the year ended December 31, 2019. This is down to the hard work and dedication of our exceptional team operating at the Blanket Mine not least in how they have successfully addressed challenges in the year such as the variable power supply and grade fluctuations,” Caledonia’s Chief Executive Officer, Steve Curtis said.