Business / Companies
Blanket Mine's gold output increases
15 Aug 2012 at 06:32hrs | Views
BLANKET Gold Mine's output in the second quarter was 11 560 ounces, up 26 percent from the previous quarter. The firm's latest quarter gold output was also a 41 percent improvement from the prior comparable period last year.
Gross profit for Q2 was US$10 million compared to US$8,9 million in Q1.
Blanket's production costs were lower during the period under review.
Its cash operating costs in Q2 decreased to US$547 per ounce of gold produced from US$648 in the Q1 and US$585 in the 2011 comparable quarter.
"The decrease in cash costs was due to the higher gold production during the quarter and the non-recurrence of certain costs which temporarily increased the average cost per ounce in the preceding quarter," said Caledonia, the parent company.
The firm attributed the increase in gold production and profits during the period to the completion of scheduled maintenance on the winding portion of both compartments of a major shaft, which was completed in early May and allowed an increase in the daily available hoisting time.
Blanket Mine is majority owned by Canadian firm Caledonia Mining Corporation, which is currently in the process of localising ownership of the mine in line with Zimbabwe's indigenisation programme.
Caledonia also reported that its pre-tax profits more than doubled in the six months to the end of June, rising to US$16,4 million from US$8,1 million in last year's corresponding period.
Revenues rose to US$36,1 million from US$23,2 million and total comprehensive income increased to US$12,4 million from US$3,7 million.
Commenting on the mine's performance, Caledonia chief executive officer Mr Stefan Hayden said: "The strong operating performance is a testament to the hard work of the management and employees at Blanket and shows the benefits of Caledonia's recent investments in the Blanket Mine."
Mr Hayden also said the full indigenisation of Blanket Mine is near complete as all the requisite agreements have been signed and only await approval from the Reserve Bank of Zimbabwe.
"Caledonia and Blanket have made good progress on implementing indigenisation at Blanket Mine.
"All of the transaction documents have been signed; we await only the final approval from the Reserve Bank of Zimbabwe so that all of the transactions can become unconditional.
"Once indigenisation has been fully implemented, Blanket, as a profitable and cash-generative gold producer, will be well positioned to take advantage of opportunities that exist for further growth."
During the quarter under review, Caledonia donated US$1 million to the Gwanda Community Share Ownership Trust and paid US$1,8 million to the National Indigenisation Economic Empowerment Fund in anticipation of an advance dividend arrangement against their right to receive dividends declared by Blanket on their proposed shareholding in the mine.
Overall, during the quarter Blanket made payments in respect of direct and indirect taxes, royalties, licence fees, levies and other payments to the Government totalling US$7,8 million compared to US$3,2 million in the preceding quarter and US$3,3 million in the comparable quarter.
Gross profit for Q2 was US$10 million compared to US$8,9 million in Q1.
Blanket's production costs were lower during the period under review.
Its cash operating costs in Q2 decreased to US$547 per ounce of gold produced from US$648 in the Q1 and US$585 in the 2011 comparable quarter.
"The decrease in cash costs was due to the higher gold production during the quarter and the non-recurrence of certain costs which temporarily increased the average cost per ounce in the preceding quarter," said Caledonia, the parent company.
The firm attributed the increase in gold production and profits during the period to the completion of scheduled maintenance on the winding portion of both compartments of a major shaft, which was completed in early May and allowed an increase in the daily available hoisting time.
Blanket Mine is majority owned by Canadian firm Caledonia Mining Corporation, which is currently in the process of localising ownership of the mine in line with Zimbabwe's indigenisation programme.
Caledonia also reported that its pre-tax profits more than doubled in the six months to the end of June, rising to US$16,4 million from US$8,1 million in last year's corresponding period.
Commenting on the mine's performance, Caledonia chief executive officer Mr Stefan Hayden said: "The strong operating performance is a testament to the hard work of the management and employees at Blanket and shows the benefits of Caledonia's recent investments in the Blanket Mine."
Mr Hayden also said the full indigenisation of Blanket Mine is near complete as all the requisite agreements have been signed and only await approval from the Reserve Bank of Zimbabwe.
"Caledonia and Blanket have made good progress on implementing indigenisation at Blanket Mine.
"All of the transaction documents have been signed; we await only the final approval from the Reserve Bank of Zimbabwe so that all of the transactions can become unconditional.
"Once indigenisation has been fully implemented, Blanket, as a profitable and cash-generative gold producer, will be well positioned to take advantage of opportunities that exist for further growth."
During the quarter under review, Caledonia donated US$1 million to the Gwanda Community Share Ownership Trust and paid US$1,8 million to the National Indigenisation Economic Empowerment Fund in anticipation of an advance dividend arrangement against their right to receive dividends declared by Blanket on their proposed shareholding in the mine.
Overall, during the quarter Blanket made payments in respect of direct and indirect taxes, royalties, licence fees, levies and other payments to the Government totalling US$7,8 million compared to US$3,2 million in the preceding quarter and US$3,3 million in the comparable quarter.
Source - TH
