Caledonia Mining Corporation PLC has announced its operating and financial results for the quarter and nine months ended September 30, 2023. The results show a significant improvement in the production performance of Blanket Mine, which reported record quarterly production. The negative contribution from the Bilboes oxide mine has been reduced as it was placed on care and maintenance from October 1, 2023. This will result in a reduction in monthly costs from approximately $1 million to approximately $200,000 at Bilboes.

Financial highlights include revenues of $41.2 million for the quarter, a record quarterly performance for the group. Gross profit for the quarter was $14.1 million and EBITDA was $15.5 million, slightly lower than the comparative quarter. Consolidated on-mine cost per ounce for the quarter was $928, mainly due to the high cost per ounce at the Bilboes oxide mine. On-mine costs at Blanket were $817 per ounce, an 11.3% increase from the comparative quarter. All-in sustaining cost at Blanket for the quarter was $1,171 per ounce, reflecting higher on-mine costs and higher sustaining capital expenditure and administrative expenses. Basic IFRS earnings per share for the quarter were 24.1 cents.

Operating highlights include the production of 21,772 ounces of gold in the quarter, a new quarterly production record. Gold produced in the nine months was 55,244 ounces. Caledonia reiterates its gold production guidance for 2023 of between 75,000 and 80,000 ounces.

Regarding the Bilboes gold project, mining and metallurgical processing continued until the end of September, after which the operation returned to care and maintenance. Monthly costs have been substantially reduced. 1,151 ounces of gold were produced from the Bilboes oxide mine in the quarter, and leaching of material on the leach pad will continue for the remainder of 2023. Oxide mining will resume when the stripping of waste for the sulphide project commences. Work is ongoing on a revised feasibility study for the Bilboes sulphide project, with a focus on capital allocation to maximize future shareholder value. A phased approach to the project may be considered to reduce the initial capital requirement.