Caledonia Mining registers 31 percent increase, Eureka Gold Mine plant goes online

By Owen Mandovha

Companies operating in the country’s gold mining sector continue to shine thereby increasing prospects of attaining a US$12 billion mining industry by the year 2023.

It is yet another impressive set of results in the second quarter ending 30 June 2021 by gold mining concern, Caledonia which owns Blanket Mine after an increase in revenue by 31 percent to US$31 million, compared to US$22.9 million earned over the same period in 2020.

Gross profit also surged by 51 percent to US$13.9 million, with the company boasting of cash in the bank to the tune of US$16 million.

Cost containment measures have contributed to this remarkable achievement with mine production costs having declined from US$811 per ounce in the second quarter of last year compared to US$715 per ounce in the same period this year.

Another gold mining company, Dalaglio Gold which invested over US$15 million in reviving Eureka Gold Mine in Guruve produced its first ounce in July as the plant went online.

“We are excited to announce that the plant is now functioning and in July. We had our first product and by December we expect to operate at full capacity,” said Eureka Gold Mine Executive James Beare.

The gold sector’s star continues to shine in the mining industry and last month, Freda Rebecca Mine owned by Kuvimba Mining House smashed a 20-year record after producing 300 kilogrammes in May.

These positive developments have placed the country on course to achieve the envisaged US$12 billion mining sector by 2023, with gold expected to contribute at least US$4 billion of that total.

The post Caledonia Mining registers 31 percent increase, Eureka Gold Mine plant goes online appeared first on ZBC NEWS.

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