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The total dividend paid in the third quarter was $0.085 a share, with a further dividend at the increased rate of $0.10 a share being paid in October.

Gross revenues of $25.4-million were also recorded – a 27% increase on the $20-million achieved in the third quarter of 2019.

Earnings before interest, taxes, depreciation and amortisation (excluding net foreign exchange gains and share-based payments) also increased by 34% to $11.2-million.

However, Caledonia’s on-mine cost increased from $686/oz in the third quarter of 2019, to $758/oz as a result of costs associated with Covid-19, a share-based payment expense and the increased use of the diesel generators.

As such, the all-in sustaining cost per ounce increased from $872 in the third quarter of 2019, to $1 119 owing to a higher insurance premium and an increased share-based payment expense.

Basic International Financial Reporting Standards (IFRS) earnings a share decreased from $0.634 apiece, to $0.366 apiece during the period, while IFRS earnings for the quarter were adversely affected by a lower foreign exchange gain and higher taxation.

OPERATIONS
The miner reports that Covid-19 had no impact on production during the third quarter and, as such, it managed to produce 15 155 oz of gold, up from the 13 646 oz produced during the comparative period in 2019.

For the nine months to date, Caledonia produced 42 887 oz, up from the 38 306 oz produced during the first nine months of 2019.

In terms of tonnes mined and milled in the quarter, Caledonia increased this volume by 10% when compared with the corresponding period of 2019, while recoveries were also slightly improved.

Caledonia also managed to continue equipping its central shaft during the third quarter at an increased rate as operations returned to normal following the relaxation of measures to prevent the spread of Covid-19.

As such, the central shaft is expected to be fully equipped by the end of the year, and to be commissioned in the first quarter of 2021 – about three months later than expected owing to the delays arising from Covid-19.

Going forward, Caledonia reports that its production guidance for 2021 is 61 000 oz to 67 000 oz, while guidance for 2022 is about 80 000 oz.

Voltalia, an international renewable energy provider, has been appointed as the contractor for the 12 MW solar project which is expected to be commissioned before the end of 2021 and is expected to provide about 27% of the Blanket mine’s average daily electricity requirements.

Caledonia CEO Steve Curtis says the resilience of the company’s Blanket mine’s operations during this difficult period is testament to the “outstanding commitment” of the entire team at the mine.