The company said gold produced at Blanket Mine during the period was 9 164 oz, 13 percent lower than the 10 533oz produced in the quarter ended 31 December 2011.
The lower gold production in the first quarter was due to scheduled maintenance on the No 4 Shaft.
The maintenance was completed at the end of April 2012.
Gross Profit was $8.9 million to $9 million in the preceding quarter and $5.2 million in the same quarter last year.
During the first quarter, Blanket made payments in respect of direct and indirect taxes, royalties, licence fees, levies and other payments to the Government of Zimbabwe totalling US$3.3 million compared to US$5 million in the preceding quarter and US$1.4 million in the same quarter last year.
Meanwhile, Caledonia and Blanket have commenced implementation of the Memorandum of Understanding which was signed with the Government of Zimbabwe in February 2012.
The first of four transactions for the sale of 15 percent of Blanket to a consortium of Indigenous Zimbabweans, for a consideration of US$11 million, has been signed.
“The first transaction for the sale of 15 percent of Blanket to Flemiro Investments, a Zimbabwean-registered investment company, which has been incorporated to represent a diverse group of Indigenous Zimbabweans, for a consideration of US$11.008 million, has been signed.
‘‘Caledonia will facilitate the vendor funding of this transaction which will be repaid by way of future dividends from Blanket. Outstanding balances on the facilitation loans in terms of the Agreement will attract interest at a rate of 10 percent over the 12-month LIBOR.
‘‘The timing for the repayment of the facilitation loans will depend on the future financial performance of the Blanket Mine. Caledonia expects to redeploy the sale consideration in its projects,” Caledonia stated.
Post published in: News