Zimbabwe’s Gwanda Gold Producer – Blanket Gold Mine Amplified Gold Production Aloof functional Snags of the Novel Coronavirus Scourge
By Abdul Rahman Bangura–
NEW AFRICA BUSINESS NEWS (NABN) Freetown, Sierra Leone- Zimbabwe’s Gwanda, based gold creator – Blanket Gold Mine, has increased the creation of the valuable metal in the introductory section to March 31st, 2020 regardless of some functioning difficulties induced by the Novel Coronavirus plague. The mine elicited 14,233 ounces of gold from its Blanket Mine, wakeful from the 11,948 generated in the preliminary comparative period.
Policies carried out by the Caledonia Mining Corporation-owned mine during the period assured that, generation proceeded at closely 93% of originally establishing Zimbabwe’s nationwide lockdown period, that started on March 30th, 2020. Yet, undertakings at the mine, have ebbed to conventional statuses.
Cumulative earnings for the period amounts to $23.6 million, 4% upgrade on the $15.9 million attained in the early section of 2019.
The gold creator published a gross profit of $10.6 million, which was 146% upswing on the $4.3 million, that was documented during the introductory comparative period at a gross perimeter of 50%.
The company noted earnings before interest, taxes, depreciation and amortization (EBITDA) of $10.2 million, 162% improvement on the $3.9 million in the first section of 2019 at a ledge of 43%. Precisely, in maintaining costs came in at U$879 per ounce, down considerably from the 2019 number of $1,039 per ounce.
The Chief Executive Officer of Caledonia – Steve Curtis accentuated an exceptional functional climate in Zimbabwe.
“In parallel with the improved financial and operating performance, I am also pleased to report an improved operating environment in Zimbabwe. Although the country continues to face challenges, the introduction of the interbank rate early in 2019 allows us to better protect our workers from the effects of high inflation,” stated Curtis.
“The interruptions to the supply of electricity from the grid which we experienced last year have largely been addressed following the conclusion of an agreement whereby Blanket (and other gold producers) purchases power which is imported into Zimbabwe. This power is cheaper than under the previous arrangement and Blanket can manage the reduced incidence of power interruptions using its increased suite of diesel generators.
“We are also well-advanced in the evaluation of a solar project to provide some of Blanket’s power supply and reduce its dependence on imported power during daylight hours.”
He added: “The coronavirus pandemic had no appreciable effect on Blanket or Caledonia during the quarter because lockdowns were only implemented by the Zimbabwe and South African governments to manage the virus at the end of the quarter.
“During the lockdowns, which extended for much of April, Blanket achieved approximately 93 percent of its normal target production by using its stocks of consumables and implementing measures to safeguard employees.
“In early May, Blanket resumed full production and I expect production to continue as planned provided Blanket’s workforce remains healthy and its supply chains and access to the market for the gold produced remain open.”
Caledonia announced a dividend of US$0.075 per share, which will be paid this month.
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