Caledonia lowers 2018 production guidance, but remains on track with
2021 production target
Caledonia lowers 2018
production guidance, but remains on track with 2021 production target
October 11, 2018
Caledonia Mining produced 13 978
oz gold from its Blanket mine, in Zimbabwe, during the quarter ended September
30.This is 10% above the output achieved in the second quarter but 3% below
that of the third quarter of 2017.
Gold produced for the nine months
to September 30 was 39 559 oz, marginally behind the 39 710 oz produced in the
corresponding period in 2017.Caledonia expects improved production to continue
into the fourth quarter; however, it has narrowed the range of its 2018
production guidance from between 55 000 oz and 59 000 oz to between 54 000 oz
and 56 000 oz.The company, nevertheless, remains on track to achieve its
production target of 80 000 oz in 2021.
As a result of the adjusted 2018
production guidance and the recent weakness in the gold price – assuming the
current spot gold price is maintained for the rest of this year and assuming no
material change in the company's operating costs – Caledonia expects full-year
2018 adjusted earnings a share to be in the range of 140c to 150c apiece.This
is a reduction from the previous earnings guidance of 165c to 190c apiece, but
is 3% to 12% higher than the earnings achieved in 2017.“Grade during the
quarter continued to be below expected levels and remains a key area of focus
for the business. I am pleased with the progress that our technical teams have
made with our focus on improved mining practices to minimise dilution and I
have confidence that their efforts will continue to deliver results,” said
Caledonia CEO Steve Curtis.
Caledonia remains confident in
the underlying geological model for Blanket and that the longer-term potential
of the orebody is robust. The company expects grades to return to budgeted
levels in the fourth quarter of this year."The sinking of the central
shaft continues according to plan and within budget; we look forward to
starting production from the central shaft in 2020, which is expected to
deliver the company's growth plan to achieve 80 000 oz/y by 2021"
Source: http://www.miningweekly.com/a
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