OTTAWA – Canada’s Caledonia Mining continues to expect gold production to increase from its Blanket Mine in Matabeleland South in 2014, as it posted what it called a “creditable” set of full-year 2013 numbers.
The lower gold price last year meant the average price realised was lower, but production from the mine beat the firm’s own guidance.
Caledonia says it will continue to invest in the mine to boost production, which, for 2014, it has forecast as 48 000 ounces, and for 2015, 52 000 ounces of the yellow metal.
In the 12 months to December 31 last year, gold production came in 45 527 ounces, compared to 45 465 in 2012, with the fourth quarter marginally lower than the same quarter in 2012 due to a three day maintenance shutdown.
The average realised gold price for the year was $1 402 per ounce compared to $1 666 in 2012.
All in sustaining costs for the year were $973 per ounce (2012: $852 per ounce).
Under rules introduced by the Zimbabwean government, all gold from Blanket must now be sold to State-controlled Fidelity Printers and Refiners.
These new sales arrangements have reduced Blanket’s working capital requirement due to the earlier payment terms.
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Blanket has received all payments due from Fidelity in full and on time, the company highlighted.
Meanwhile, exploration at Blanket below 750m continues and Caledonia has been encouraged by results so far.
The mine has surplus plant capacity and is sufficiently cash generative that, if the investment climate is acceptable, it could invest in projects with a view to further increasing production, the company added.
The firm plans to pay a dividend of six Canadian cents per share in 2014, split into four equal quarterly payments of 1,5 Canadian cents.
Caledonia’s chief executive and president Stefan Hayden said: “Gold production in 2013 remained slightly ahead of 2012 and was also ahead of our guidance.
“Blanket’s on-mine cash cost increased in Q4 compared to the previous quarter, however this was largely due to the higher work-in-progress at December 31 2013.
“As a measure of Blanket’s continued cost efficiency, the cost per tonne processed in 2013 fell from $75,90 to $70,40.
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