Caledonia Mining Corp PLC - gold producer with operations in Zimbabwe - Profit jumps as it benefits from a high gold price and more production. Pretax profit in the second quarter to June 30 surges to $18.7 million from $7.7 million a year ago. Revenue climbs 23% to $37.0 million from $30.0 million. Gold output surges 20% to 20,091 ounces from 16,710 ounces. Aims to satisfy conditions to buy Bilboes Gold Ltd and prepare a feasibility study to gauge commercialisation prospects of the Bilboes gold project. In July, seller Baker Steel Resources Trust Ltd said the value of its Bilboes Gold sale to Caledonia was $14.3 million.
Caledonia Chief Executive Officer Mark Learmonth lists ‘excellent production, along with a higher gold price and good cost control’ as reasons for company’s profit growth.
Calling the first half of 2022 ‘outstanding’ as they exceeded internal expectations, Learmonth adds the firm wants to ‘consider other investment opportunities in the Zimbabwe gold sector within the constraints of its financing and management capacity’.
Current stock price: 935.00 pence, up 1.1% on Thursday in London
12-month change: up 6.3%
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