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(Sharecast News) - Caledonia Mining Corporation announced on Tuesday that gold production at its Blanket Mine met 2024 guidance, with 76,656 ounces produced, up slightly from 75,416 ounces in 2023.
The AIM-traded company said the fourth quarter contributed 19,841 ounces, supported by record annual milling of 797,000 tonnes.
Sales for the year totalled 76,271 ounces, with 17,734 ounces sold in the final quarter.
The year-end stockpile included an estimated 700 ounces of unrecovered gold, positioning the mine for a strong start in 2025.
For 2025, Caledonia projected gold production of 73,500 to 77,500 ounces, reflecting current mine scheduling and continued mining in lower-grade areas.[
On-mine costs were forecast at $1,050 to $1,150 per ounce, with all-in sustaining costs (AISC) expected to rise to $1,690 to $1,790 per ounce, up from $1,450 to $1,550 in 2024.
The board said the increase reflected higher labour and IT costs, as well as elevated sustaining capital expenditures to modernise operations and improve long-term efficiency.
Caledonia said it was planning $41.8m in capital expenditure for 2025, with $34.9m allocated to the Blanket Mine.
Key investments would include $6.6m for development work, $3.4m for energy-saving initiatives, and $4.8m for completing the tailings storage facility.
An additional $5.8m was earmarked for exploration and feasibility studies at the Bilboes and Motapa projects.
Despite the investments, Caledonia said it expected no impact on its dividend, with funding drawn from cash generation and reserves.
"Over the past seven years, our investment in Blanket has nearly doubled production and has substantially increased the resource base following which Blanket's mine life now extends to 2034 based on reserves," said chief executive officer Mark Learmonth.
"The 2025 capital budget addresses immediate operational needs and includes strategic investments to enhance Blanket's operating resilience and efficiency.
"We continue to make strategic investments in our people and technology which, in due course, I am confident will result in operating efficiencies."
Learmonth said the transition of key functions to a new office in Bulawayo would provide synergies with the company's next mine, the Bilboes sulphide project.
"At Bilboes, we continue to progress the revised feasibility study for the Bilboes sulphide project, which is scheduled to complete later in the first quarter of this year.
"Following the publication, in November 2024, of encouraging exploration results at Motapa, the 2025 capital budget includes provision for further exploration on targeted sites with the most geological potential and the opportunity for early synergies with the Bilboes project.
"We are systematically building a mid-tier Zimbabwe focussed gold producer with multi-asset profitable production, whilst doing so with a focus on capital allocation and building per share value."
At 1105 GMT, shares in Caledonia Mining Corporation were up 2.16% at 776.45p.
Reporting by Josh White for Sharecast.com.