The gold producer said some 55,182 ounces of gold were produced in the twelve months ended 31 December 2019, up from 54,511 ounces, meanwhile, output in the fourth quarter set a new record of 16,876 ounces.
The company reported a gross profit of US31.1mln with a gross margin of 41%, up from 32%, and earnings (EBITDA) totalled US$29.9mln, up from US$19.1mln.
Caledonia generated net cash of US$18.1mln in the year and it ended December with US$8.9mln of cash and equivalents – after investing some US$20mln during the year.
For the year it paid a total dividend of 27.5 cents per share.
"I am delighted by Blanket Mine's strong performance which resulted in a record level of production in the [fourth] quarter,” said Steve Curtis, Calendonia chief executive.
“Increased production, combined with lower on-mine costs per ounce and an improved gold price, resulted in a substantial increase in profit.”
He added: “The excellent financial and operating performance is particularly pleasing given the difficult start to the Year and is testament to the resilience and tenacity of the management and workforce at Blanket and at Caledonia.”
"Cash flows remain strong, despite continued substantial investment in the Central Shaft. Cash flows from operating activities were US$23.9mln for the year compared to US$21.1mln for 2018."
“Cash flows from operating activities in the year are after a US$4.2mln increase in working capital due to increased inventories (part of which relates to increased stocks of diesel to protect against interruptions to the electricity from the grid) and higher prepayments and lower payables which reflect the reduced availability of supplier credit in Zimbabwe due to the high level of inflation,” Curtis concluded.
Caledonia also revealed an improved outlook and proposed an increase in quarterly dividend payments by 9% to 7.5 cents per share. It comes as the Central Shaft project approaches its end.
The company guided for 2020 gold production pf between 53,000 and 56,000 ounces – excluding contributions from the Central Shaft project, which is due to kick-in during the fourth quarter. Following the commissioning of the new area, production can begin a ramp-up with 2021 production estimates pitched at 75,000 and 2022’s output forecast at 80,000 ounces, it said.
Caledonia is guiding for 2020 on-mine costs of between US$693 to US$767 per ounce, with the ‘all in sustaining cost’ anticipated between US$951 and US$1,033 per ounce.