London-listed Caledonia Mining Corporation (AIM:CMCL ) has increased its gold production at its Blanket mine in Zimbabwe during the first quarter ended March 31, 2020.
The mining group told investors it produced 14,233 ounces of gold from its Blanket mine up from the 11,948 produced in the comparative period a year ago.
Final results for the same period ending March 31 2020 showed gross revenues up 48% to $23.6m from $15.9m in the first quarter of 2019.
At the same time, gross profit soared 146% to $10.6m from $4.3m in the first quarter of 2019 at a gross margin of 50%.
All-in sustaining costs came in at $879 per ounce down significantly from the 2019 period where the number came in at US$1,039 per ounce.
EBITDA now stands at $10.2m, a 162% increase on the $3.9m in Q1 2019, while the group’s net cash and cash equivalents was at $13.8m, up from $8.9m recorded at the end of 2019.
Shares in Caledonia Mining Corporation were trading 2.14% higher at 1,072.5p on Tuesday.
Due to its strong performance, the group declared a dividend of US$0.075 per share - a 9.1% increase on the previous dividend paid in October 2019 - which is to be paid in May 2020.
The company said the COVID-19 pandemic has had ‘a negligible effect’ on production and capital projects in the quarter.
Production has continued at around 93% of target during the three-week lockdown which started in Zimbabwe on March 30, 2020 and production has since returned to normal levels.
As a result, the company said that its production guidance for 2020 remains unchanged at 53,000 to 56,000 ounces.
Meanwhile, progress on the Central Shaft continued in April, but at a slower pace due to a reduced contractor team, the group added.
The Blanket mine has made substantial contributions to the in-country fight against COVID-19 and has undertaken to make further weekly donations, Caledonia noted.
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