Caledonia Mining earns record profit during 2021

By Owen Mandovha

CALEDONIA Mining’s impressive annual financial results have demonstrated the opportunities that are available in the local mining sector, which has prompted the international company to further commit its future in the country.

Caledonia Mining owns Blanket Gold Mine in Gwanda and quarterly results during the year 2021 consistently smashed the previous year’s records with the company attributing the impressive feat to the improving operating environment and firming gold prices.

Commenting on the latest full-year financial results for 2021, Caledonia Mining Chief Financial Officer Mark Leamoth revealed that the US$54.1 million United States dollars is a record showing Blanket Mine’s performance.

“Gross revenues during the year 2021 stood at US$ 121 million and gross profit earned was US$54.1 million. Our margins have improved as well as production which was at over 67 000 ounces for the year. The year 2021 was indeed a rosy one for the company and we are looking forward to a bright future,” he said.

Apart from sinking a new central shaft which has triggered an increase in output, Caledonia Mining is constructing a solar plant to power its operations.

“Works to build a 12MW solar plant have already started and the investment is aimed at supplying the mine with a quarter of its electricity supply because of power cuts which have not affected Zimbabwe only but the entire Southern African Region. The investment reflects our commitment to the future of this country as also evidenced by our investment in the Central shaft,” he added.

Caledonia Mining is not an isolated case in the gold sector as several gold mining houses are also excelling.

These include the newly reopened Eureka Gold Mine in Guruve, Freda Rebecca Mine and Shamva Gold Mines which have shown great signs of recovery.

This confirms that the attainment of a US$12 billion mining industry by the year 2023 is within reach.

Leave a Reply

%d bloggers like this: