Caledonia, which has gold operations in Zimbabwe, recorded reduced earnings before interest, taxes, depreciation, and amortisation (EBITDA) contribution in the first quarter of 2023 of $2.25 million compared to $14.5 million, a year earlier.
It said the “disappointing” contribution was due to lower revenues and higher operating costs at Blanket and the Bilboes oxide mine.
Blanket Mine contributed EBITDA of $11.3 million in the quarter, up from the previous year’s $19.5 million.
Caledonia recorded gross revenues of $29.4 million during the period under review, compared to $35.1 million in the first quarter of 2022.
Lower revenues reflect lower gold production at Blanket.
Caledonia’s first quarter gold output was 16,141 ounces (oz) from 18,515 ounces, a year earlier.
Of the total output, 16,036 oz were produced at Blanket and 105 oz at the Bilboes oxide mine.
Production at Blanket was lower than expected due to minor mechanical breakdowns and logistical issues which have now been resolved.
Meanwhile, Caledonia said production guidance for Blanket for the year to December 31, 2023 of between 75,000 and 80,000 ounces of gold will not change.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
It said the “disappointing” contribution was due to lower revenues and higher operating costs at Blanket and the Bilboes oxide mine.
Blanket Mine contributed EBITDA of $11.3 million in the quarter, up from the previous year’s $19.5 million.
Caledonia recorded gross revenues of $29.4 million during the period under review, compared to $35.1 million in the first quarter of 2022.
Lower revenues reflect lower gold production at Blanket.
Caledonia’s first quarter gold output was 16,141 ounces (oz) from 18,515 ounces, a year earlier.
Of the total output, 16,036 oz were produced at Blanket and 105 oz at the Bilboes oxide mine.
Production at Blanket was lower than expected due to minor mechanical breakdowns and logistical issues which have now been resolved.
Meanwhile, Caledonia said production guidance for Blanket for the year to December 31, 2023 of between 75,000 and 80,000 ounces of gold will not change.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
