Caledonia Mining Corporation Plc (LON:CMCL) announced quarterly gold production from the Blanket Mine in Zimbabwe for the quarter ended 30th September, 2020. All production numbers are expressed on a 100 per cent basis and are based on mine production data and are, therefore, subject to adjustment following final assay at the refiners.
We caught up with CFO Mark Learmonth in this video interview to discuss todays news.
Questions asked were:
00.18 You announced a record third quarter today – were there any particular factors that allowed you to achieve this result?
00.49 You also increased guidance from 55-58 thousand oz, so a good year for CMCL. Are you expecting a strong 4th quarter?
02.17 We also saw that last week you increased the dividend to 10c a share – the third increase this year – is this part of management’s strategy, to return money to shareholders now that the central shaft is nearly completed?
04.07 What other news flow can we expect from Caledonia over the coming months?
· Approximately 15,164 ounces of gold were produced during the Quarter, an increase of 11.1 per cent on the 13,646 ounces produced in the corresponding quarter of 2019.
· Production guidance for the year to December 31, 2020 increased to between 55,000 and 58,000 ounces.
· Gold produced in the nine months to September 30, 2020 was 42,896 ounces, 12 per cent more than the 38,306 ounces produced in the nine months to September 30, 2019.
· Caledonia remains on track to achieve its production target of 80,000 ounces by 2022.
Commenting on the announcement, Steve Curtis, Chief Executive Officer, said:
“The production of 15,164 ounces in the third quarter is a record result and is an increase of more than 11 per cent compared to the corresponding quarter in 2019.
“Notwithstanding the negative effect of the coronavirus pandemic on supply chains and operating arrangements, Blanket has delivered robust production results for the first nine months of 2020. Due to the strong production, I am delighted that we are now able to increase our production guidance from 53,000 to 56,000 ounces to 55,000 to 58,000 ounces. Along with the increased dividend, this really demonstrates the strength of our business and I would like to thank the team for this result.”