Farai Mabeza, Senior Staff Writer 
CALEDONIA Mining Corporation Plc says its secondary listing on the Victoria Falls Stock Exchange in late 2021 has seen the gold miner registering an increased proportion of revenues in US dollars.
This comes as the company reported gross revenues of US$35,1 million, up from US$25,7 million recorded in Q1 2021 in its operating and financial results for the quarter ended March 31, 2022.
“This (VFEX revenue), in conjunction with other arrangements, means that we are not accumulating excessive local currency balances. We have a strong, long-term working relationship with the Reserve Bank of Zimbabwe and Fidelity Printers and Refiners and we are delighted that the payment process for gold deliveries and the regulations that manage the flow of funds from Zimbabwe continue to operate smoothly,” Caledonia chief executive Steve Curtis said in a statement accompanying the results.
Caledonia chief executive Steve Curtis
Caledonia said the higher revenues reflected a 40 percent increase in production and a six percent increase in the realised gold price. Revenues include the sale proceeds of 442 ounces (net) of gold in work in progress.
“The first quarter of 2022 was an excellent start to 2022. Gold production in the quarter represents a new production record for any first quarter. Production in April showed a further improvement: production of almost 6 800 ounces in the month reflects an annualised production rate that is marginally above the top end of our guidance range for 2022 of 73 000 to 80 000 ounces of gold.
“The higher production reflects increased tonnes milled, better grade and improved recovery. Production in the quarter excludes approximately 1 500 ounces of recoverable gold contained in an ore stockpile which accumulated during the quarter as we await the commissioning of an additional mill later in the year.
“Operating costs were well controlled,” Curtis said. The on-mine cost per ounce fell by 16 percent compared to the first quarter of 2021 and this was attributed to the higher production, which meant fixed costs were spread over more production ounces.
“Costs were also helped by reduced diesel consumption following the installation of equipment in late 2021 which allows us to manage the poor-quality grid power,” Curtis said.
“All-in sustaining costs per ounce were also 7 percent lower than the first quarter of 2021.” The quarter saw total production of 18 515 ounces of gold compared to 13 197 ounces in Q1 2021. April recorded 6 797 ounces of gold, which is an annualised production rate of approximately 81 500 ounces.
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