LONDON (Alliance News) - Caledonia Mining Corp on Thursday said its gold production and gold sales both fell in the first half as trends in the second quarter were in line with the first, sending its gross profit lower in the period, though the group said its production was slightly ahead of target.
Caledonia said its gold production for the first half to the end of June was 20,361 ounces, down from 21,464 ounces a year earlier, as second quarter production fell to 10,401 ounces from 11,223 ounces. Caledonia said, however, that production was slightly ahead of its targets.
Gold sales in the half were down to 21,174 ounces from 23,433 ounces, with second quarter sales falling to 10,401 ounces from 11,223 ounces.
Gross profit for the group in the half was CAD8.6 million, down from CAD11.7 million, as its average gold sales price fell to USD1,187 per ounce from USD1,267 per ounce, tracking a fall in the gold price.
"Subsequent to the end of the second quarter of 2015, the price of gold fell significantly. Blanket continues to operate profitably at the lower gold price and production and costs remain as planned. If the current gold price is sustained, however, investors should revise their expectations for Caledonia's future financial performance to reflect the prevailing environment. As production begins to increase from the first quarter of 2016, I expect that average costs per ounce will start to fall," says Steve Curtis, Caledonia's chief executive and president.
Shares in Caledonia were untraded early Thursday, having last traded at 43.00 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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Caledonia Min (CMCL)