LONDON (Alliance News) - Caledonia Mining Corp Monday said the Blanket gold mine in Zimbabwe is on track to hit its full-year production guidance as quarterly production rose quarter-on-quarter but was down from a year earlier.
Caledonia said the Blanket mine, in which it holds a 49% stake, produced 10,424 ounces of gold in the second quarter, rising 4.7% quarter on quarter from 9,960 ounces but falling 7.1% year on year from 11,223 ounces. That means Caledonia's share of production in the second quarter was just over 5,000 ounces.
The blanket mine is expected to produce around 42,000 ounces of gold in 2015, of which just under half will be attributable to Caledonia.
"The increased production reflects the improved management control over grade and tonnage. It is anticipated that production will increase somewhat in the second half of 2015 following completion of the tramming loop on 22 Level in June," said Chief Executive Steve Curtis.
Caledonia is the only company involved in the Blanket mine. The holders of the other 51% are the Natural Indigenisation and Economic Empowerment Fund, a management and employee benefit trust, indigenous Zimbabweans, and the Gwanda Community Share Ownership Trust.
Caledonia said it is debt free and had a cash balance of USD26.1 million at the end of March.
Caledonia shares were up 1.1% to 53.60 pence per share on Monday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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Caledonia Min (CMCL)