CALEDONIA Mining Corporation plc has recorded a new high in gold production as output 40% in the first three months of 2022.
Latest update shows that the top miner recorded growth in both productivity and earnings during the review period.
“The first quarter performance saw 18 515 ounces of gold being produced in the quarter compared to 13 197 ounces produced in the similar comparative period last year. The 40% increase in production was due to higher tons milled, improved grade and better metallurgical recoveries,” the update said.
Gross revenues of US$35,1 million was earned during the period compared to US$25,7 million earned in a similar period last year on the back of a 40% increase in production and a 6% increase in the realised gold price.
The revenues include the sale proceeds of 442 ounces net of gold in work-in-progress.
“On-mine cost of US$698 per ounce was recorded compared to US$836 per ounce recorded last year. Lower cost per ounce was primarily due to higher production, which means that fixed costs are spread across more ounces, improved grade and reduced use of diesel generators.
“All-in sustaining cost of US$968 per ounce compared to $1 044 per ounce recorded in a comparative period last year),” said the update.
The firm has also seen a surge in productivity in the month of April amid optimism of a further improvement with production of almost 6 800 ounces in the month reflecting an annualized production rate that is marginally above the top end of the guidance range for 2022 of 73 000 to 80 000 ounces of gold.