Caledonia Mining Reports Mixed Results for Q3 2024, Focuses on Growth and Cost Optimization
Caledonia Mining Corporation Plc (CMCL), listed on the Victoria Falls Stock Exchange, has released its third-quarter financial results for 2024, showing a blend of positive and negative performance indicators. The company’s revenue for the third quarter stood at US$46.9 million, a slight decrease compared to the same period in 2023. Despite this, Caledonia posted a notable increase in gross profit, which rose to US$19.3 million from US$14.1 million in Q3 2023, attributed to higher gold prices and reduced costs at the Bilboes oxide mine.
However, the company faced some challenges with rising production costs. On-mine cost per ounce for Q3 2024 increased to US$1,056, up from US$928 in Q3 2023, largely due to lower ounces sold and higher production costs at the Blanket mine. The all-in sustaining cost (AISC) per ounce also saw an increase, rising to US$1,501 from US$1,268 in the comparable quarter, as a result of decreased gold sales and higher production expenses.
In terms of earnings, Caledonia reported a decline in both basic and adjusted earnings per share (EPS). The basic EPS dropped to 12.0 cents, down from 24.1 cents in the same period last year, while adjusted EPS decreased to 26.2 cents from 29.9 cents in Q3 2023.
Gold production for the quarter reached 18,992 ounces, a decrease from the 21,772 ounces produced in the third quarter of 2023. Despite this, the company’s nine-month gold production for 2024 stood at 56,815 ounces, slightly up from 55,244 ounces in 2023. Caledonia has maintained its gold production guidance for the full year, expecting to produce between 74,000 and 78,000 ounces.
In a strategic move, Caledonia signed a conditional sale agreement to sell its subsidiary holding the 12.2MWac solar plant for US$22.35 million, reflecting its ongoing efforts to optimize operations and focus on high-growth opportunities. This includes development of the Bilboes sulphide project and exploration activities at Motapa. The company plans to complete the feasibility study for the Bilboes sulphide project by the first quarter of 2025, marking a significant step in its growth trajectory.
CEO Mark Learmonth reaffirmed Caledonia’s commitment to improving safety and operational efficiency. “We remain focused on optimizing our operations and managing our cash flows effectively,” he stated. “Blanket continues to be a strong foundation for our growth in Zimbabwe.”
In line with its commitment to delivering value to shareholders, the Caledonia board declared a dividend of 14 cents per share, set to be paid on December 6, 2024.
As Caledonia Mining moves forward, it continues to focus on strategic investments and operational improvements, while navigating the challenges of the gold mining sector. The company’s efforts in optimizing production costs and exploring new growth opportunities place it in a solid position to maintain its production targets for 2024 and beyond.
