Caledonia said during the period, Blanket Mine saw a substantial improvement in gold production at 11 560 ounces – 26 percent higher than the preceding quarter and 41 percent higher than the second quarter of 2011.
Gross profit for the quarter was $10 million compared to $8,9 million in the preceding quarter.
The increase in gold production and profits during the period were attributed to the completion of scheduled maintenance on the winding portion of both compartments of a major shaft, which was completed in early May and allowed an increase in the daily available hoisting time.
Commenting on Caledonia’s performance, Stefan Hayden, President and CEO, said the company was confident Blanket will maintain its performance.
“The strong operating performance is a testament to the hard work of the management and employees at Blanket and shows the benefits of Caledonia’s recent investments in the Blanket Mine,” he said.
“Caledonia and Blanket have made good progress on implementing indigenisation at Blanket Mine. All of the transaction documents have been signed; we await only the final approval from the Reserve Bank of Zimbabwe so that all of the transactions can become unconditional. Once indigenisation has been fully implemented, Blanket, as a profitable and cash-generative gold producer, will be well-positioned to take advantage of opportunities that exist for further growth.”
Blanket mine obliged with Zimbabwe’s inidenisation laws, which require foreign-owned firms to cede a major stake to locals.
During the quarter, it donated $1 million to the Gwanda Community Share Ownership Trust and a paid $1.8 million to the National Indigenisation Economic Empowerment Fund ("NIEEF") in anticipation of an advance dividend arrangement against their right to receive dividends declared by Blanket on their proposed shareholding in Blanket.
Post published in: Business