By: Creamer media

This compares with a net attributable profit of $1.5-million in the quarter ended March 31, 2024.

While production from the Bilboes oxide and Blanket mines, in Zimbabwe, was higher at 19 106 oz, compared with 17 476 oz in the same quarter of last year, the group’s earnings were also bolstered by an average realised gold price of $2 896/oz, compared with $2 040/oz in the prior comparable quarter.

Earnings before interest, taxes, depreciation and amortisation amounted to $22.6-million, marking a 95% year-on-year increase, while adjusted earnings per share (EPS) amounted to $0.58 – a 503% year-on-year increase.

Caledonia generated net cash from operating activities of $13.3-million in the reporting quarter, compared with $4.9-million of net cash generation having been reported in the prior comparable quarter.

The group has thereby improved its net cash position from -$14.2-million in the prior comparable quarter to -$4.6-million in the quarter under review.

CEO Mark Learmonth comments that Caledonia has delivered an exceptional first quarter with gold production having increased by 9.3% year-on-year and gross profit nearly doubling to $26.9-million compared with the same period last year.

“This strong performance demonstrates our operational resilience and ability to capitalise on favourable gold prices.”

He adds that the company’s sale of a solar power plant at its Blanket mine for $22-million helped to strengthen the balance sheet and therefore growth plans at the Bilboes and Motapa projects, as well as operational improvements at the Blanket mine.

Caledonia launched a $2.8-million exploration programme at Motapa, also in Zimbabwe, in the period under review.

“As we move forward in 2025, we remain focused on maximising profitable production at Blanket, optimising the economics of the Bilboes project and unlocking the exploration potential at Motapa,” Learmonth concludes.