Caledonia doubles earnings per share in Q3 on record gold production in Zimbabwe

Caledonia CEO Steve Curtis

Caledonia Mining announced Thursday that in Q3 2021, the company produced 18,965 ounces of gold in Zimbabwe (Q3 2020: 15,155 ounces), which is a new quarterly production record for Blanket and reflects the contribution of Central Shaft.

The company also reported gross profit of $15.7 million in Q3 2021, a 25.6% increase on the $12.5 million in Q3 2020, due to higher production and lower cost per ounce offset in the quarter by a lower gold price.

Importantly, the company said that its basic IFRS earnings per share (“EPS”) increased by 56% from 36.6 cents in Q3 2020 to 57.1 cents in Q3 2021, whereas adjusted EPS increased by 102%, from 34.1 cents in Q3 2020 to 68.9 cents in Q3 2021.

CEO Steve Curtis added, “This has been another excellent quarter. Caledonia’s immediate strategic focus following the commissioning of the Central Shaft project earlier this year is to increase production, reduce operating costs and increase the flexibility to undertake further development and exploration, thereby safeguarding and enhancing Blanket’s long-term future.”

The company also noted that its production guidance for the year to December 31, 2021 has been narrowed at the top end of previous guidance at 65,000 to 67,000 ounces.