Caledonia cash flow up 296pc

HARARE - London Stock Exchange-listed resources firm, Caledonia Mining Corporation (Caledonia), says its cash from operating activities surged by 296 percent to $7 million in the first quarter from $1,77 million in the 2017 first quarter due to “substantial increase in cash from operating activities due to higher profit and reduced working capital”.

This was after the gold producer’s net profit attributable to shareholders increased to $3,1 billion  from $2,3 billion in the first quarter of last year.

The company reported that its gold production was marginally increased this year with one percent change since last year and produced this quarter 12 924 ounces of gold.

“As we continue to grow production to our target of 80 000 ounces by 2021, maintain cost control and benefit from economies of scale we look forward to further increasing cash flows and earnings,” Caledonia chief executive Steve Curtis said.

“Gold production was marginally higher in the Quarter compared to the first quarter of 2017 and was in-line with our expectations.

“We expect that production will deliver the usual increase in the second half of the year as we see the benefit of the increased level of mine development in the first half of the year, which will improve our access to higher grade areas.”

He added: “The Central Shaft remains a key enabler of long-term value of the business and I am pleased to report that the project is progressing on schedule and within budget and importantly, remains fully funded by operating cash flow.

“For our technical team to deliver production and a transformational project for the business is a significant achievement.

“Following the decision to extend the shaft sinking project in November of 2017 the shaft has now reached 30 Level (990 metres) and work has commenced on establishing the station on this level.”

Caledonia expects to produce between 55 000 and 59 000 ounces of gold for the full year, while earnings are forecast between 165 to 190 cents per share.

The company, which owns a 49 percent stake in Blanket Mine, said it remains on track to achieve the production target of 80 000 ounces by 2021 at its Zimbabwean subsidiary.

— The Financial Gazette

Comments (1)

Welldone guys

Diaspora - 19 May 2018

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