Gold producer, Caledonia Mining Corporation has announced that Blanket Mine gold production for the quarter and year ended December 31, 2024. The Company also provides guidance for the year ending December 31, 2025 in respect of production, costs and capital expenditure.
Gold production and sales in 2024
- Blanket gold production for Q4 and the full year was in line with expectations, demonstrating consistent operations at Blanket.
- Annual Blanket gold production of 76,656 ounces (oz) met guidance (74,000 to 78,000 oz), while slightly exceeding 2023 production of 75,416 oz.
- Q4 Blanket production was 19,841 oz; strong mine activity resulted in a record 797,000 tonnes milled for the year, with 89,727 tonnes hoisted in December, exceeding milling capacity.
- Blanket production for 2024 excludes an estimated 700 oz of unrecovered gold contained in an 8,400-tonne stockpile, which provides a strong start for 2025.
- Annual Blanket gold sales amounted to 76,271 oz and Q4 amounted to 17,734 oz.
Investments planned for 2025 to drive efficiencies and support growth potential
The 2025 capital expenditure programme totals $41.8 million, with $34.9 million allocated to Blanket and $5.8 million at Bilboes and Motapa. These investments aim to modernise operations and improve mining efficiency at Blanket. While there will be short-term cost pressures, the long-term goal is to reduce costs, improve profitability, and ensure the continued success of Blanket. All expenditure will be funded from cash generation and cash reserves with no anticipated impact to the dividend.
Key projects include:
- Blanket development: $6.6 million to carry out planned development of 4,663 meters including an additional 590 meters to improve flexibility and access higher grade areas.
- Efficiency improvements: $3.4 million for energy-saving initiatives at Blanket.
- Operational resilience: $4.8 million to complete the tailings storage facility and $0.7 million for IT upgrades as the business continues to modernise its systems and processes.
- Exploration and project development: $5.8 million towards exploration at Motapa, building on promising 2024 results and to complete the feasibility study at Bilboes.
Production Guidance for 2025:
Blanket production guidance for 2025 is 73,500 to 77,500 oz. This reflects the current mine scheduling, which anticipates that Blanket will continue to mine lower-grade areas.
Blanket on-mine cost is forecast at $1,050/oz to $1,150/oz (up from $950/oz to $1,050/oz in 2024), while all-in sustaining cost (AISC) is expected to be in the range of $1,690/oz to $1,790/oz (up from $1,450/oz to $1,550/oz in 2024). Cost guidance for 2025 reflects higher labour, HR and IT expenses and increased sustaining capital expenditure. Increased expenditure in these areas is part of the ongoing modernisation of the business, building a foundation for the extended operating life at Blanket, growth arising from Bilboes and Motapa, and future profitability. The 2025 on-mine cost includes $20/oz of environmental, social and governance cost ("ESG"); 2024 ESG cost of $1.3m (approx. $17/oz) was not part of the guidance range for 2024.
Mark Learmonth, Chief Executive Officer, said:
"I am pleased to report that we achieved our production guidance for the year, producing 76,656 ounces of gold. In 2024, we achieved a new record for tonnes milled of 797,000 tonnes, and in December we also set a record for hoisting 89,727 tonnes of ore, exceeding our milling capacity. As a result of the strong mine production, we closed the year with a stockpile of 8,400 tonnes which puts us in a good position to start 2025.
"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 reserve. 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. The transition of key functions to a new office in Bulawayo will provide synergies with our 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."
