Farai Mabeza, Senior Staff Writer 
BLANKET Mine (Blanket) has reported a 24 percent year-on-year increase in production for the quarter ended June 30, 2021.
The Gwanda-based gold producer had experienced a slow start in the first quarter due to flooding.
According to a statement released by parent company Caledonia Mining Corporation, Blanket produced 16 710 ounces of gold during the quarter, up from the 13 499 ounces in the corresponding quarter of 2020.
Steve Curtis
Total gold produced during the first-half of 2021 was 29 907 ounces, approximately eight percent above the 27 732 ounces produced in the first half of 2020. Caledonia said it is still on target for its 2021 full year production guidance of 61 000 to 67 000 and 80 000 ounces from 2022.
The company’s chief executive, Steve Curtis, described the second quarter output as an outstanding achievement.
“During the quarter we also announced that the central shaft was operational; this has been a huge feat by the team. We are currently working hard to achieve the expansion and we remain on track to hit our 80 000 ounce target in 2022,” Curtis said.
Caledonia poured US$67 million from internal cashflow initiatives into the five-year central shaft sinking project.
Meanwhile, Caledonia has declared a slightly increased quarterly dividend US$0,13 on each of the company’s shares up from US$0,12 that was paid in April 2021. This represents the company’s sixth increase in the quarterly dividend since October 2019.
“A scheduled ramp up in production, a firm gold price and good cost control give the board confidence that the business can sustain a higher level of dividend,” Caledonia said in a statement.
“We are pleased to announce an additional eight per cent increase in our quarterly dividend… The decision by the board to increase the dividend reflects our continued confidence in the outlook for our business.
“With the Central Shaft now in operation, the anticipated combination of rising production and declining capital investment gives us confidence to further increase the dividend payment in addition to providing funding for investment in new projects, including the exploration prospects at Glen Hume and Connemara North, as announced at the end of 2020,” Curtis said.
During the 2020 financial year, the Blanket Gold Mine produced 57 899 ounces, which was a new record for annual production.
