- Caledonia Mining increases earning guidance due to better than expected performance at Blanket Mine
- CEO Steve Curtis said a strong gold price, lower operating costs and higher production contributed to the result
- Company poised for a ‘good start’ in 2020
- Net realised and unrealised foreign exchange profits of about CAD$5.02 (US$3.80) to CAD$5.29 (US$4.00) per share.
- Shares traded at CAD$12.06 per share
Better than expected performance have prompted Caledonia Mining to announce increased earnings guidance from its Blanket Mine operations in Zimbabwe.
The company said a strong gold price, higher than expected production in 2019 and lower than expected operating costs have contributed to the company’s higher-than-market expectations with CEO Steve Curtis saying it stands in contrast to the challenges it faced last year.
“I am delighted by the excellent performance of the Blanket Mine, particularly in the latter stages of 2019, which, combined with the strength of the gold price, has resulted in us comfortably exceeding expectations for the year ended December 31, 2019,” he said.
“This is down to the hard work and dedication of our exceptional team operating at the Blanket Mine not least in how they have successfully addressed challenges in the year such as the variable power supply and grade fluctuations,”
“With these challenges addressed, an excellent start to 2020 and with the development of the Central Shaft continuing on time and record quarterly production in the fourth quarter, we look forward to an exciting year ahead.”
The positive news is reflected in the company’s share prices, in which adjusted earnings per share before net realised and unrealised foreign exchange gains for 2019 were initially expected to be CAD$5.02 (US$3.80) to CAD$1.55 (US$1.17) in the early part of the year, but is now expected to be between CAD$2.05 (US$1.55) to CAD$2.31 (US$1.75).
Earnings per share are on a International Financial Reporting Standard basis and includes net realised and unrealised foreign exchange profits of about CAD$5.02 (US$3.80) to CAD$5.29 (US$4.00) per share.
The company expects to publish its results for the year ending December 31, 2019 around March 20.
At the time of writing Caledonia Mining shares were up CAD$1.05 (9.54%) and trading at CAD$12.06 per share. It has a market capitalisation of CAD$138.6 million.
