Blanket Mine, which is under the Toronto Stock Exchange listed Caledonia Mining Company, is among the top 10 gold producers in the country, and owed the economic turn around to the high demand of gold on the global market.
According to the press statement, “Gold produced at the Blanket Mine in Zimbabwe in the quarter was 8.226 ounces, which is 141 per cent higher than the 3.408 ounces of gold produced in the second quarter of 2010. Gold production increased by 12 per cent from the 7.322 ounces produced in the preceding quarter.
“The average price per ounce of gold sold in the second quarter of 2011 was US$1.512 compared to US$1.192 in the second quarter of 2010. Gross profit was US$6.226 000 over 300 per cent higher than the US$1.534 000 achieved in the second quarter of 2010,” said CMC in a statement.
President and chief executive officer of the gold mining giant, Stefan Hayden, said: “The increase in production coupled with the strength in the gold price and a continued reduction in Blanket Mine’s operating costs has resulted in a substantial improvement in Caledonia’s profitability and cash generation.”
Meanwhile, cash operating costs at Blanket mine in the quarter plummeted to US$585 per ounce from US$648 and US$816 per ounce in the first quarter of 2011 and second of 2010 respectively.
Post published in: Business