Caledonia Mining Corporation CEO Mark Learmonth speaks to Thomas Warner from Proactive London after the Zimbabwe-focused gold producer announced a third-quarter update.
Learmonth explains that Caledonia Mining achieved some significant milestones during the quarter with gold production from its Blanket mine reaching nearly 22,000 ounces. The output helped the company reach a gross profit of $14 million for the quarter.
While acknowledging a slight increase in operational costs, Learmonth expresses optimism, emphasising the company's commitment to addressing specific challenges, including higher overtime payments and unexpected electricity usage.
Addressing the disappointing performance of the Bilboes Oxide Project, Learmonth clarified that it does not reflect on the quality of the underlying sulphide property. The company has decided to place the Bilboes Project on care and maintenance, redirecting efforts toward an ongoing feasibility study for the sulphide property.
He adds that Caledonia has received an offer for its solar project, and negotiations are underway. Learmonth highlighted the company's cautious approach to development, emphasising a commitment to optimising shareholder value.
Looking ahead, the company is working on refreshing the feasibility study for the Bilboes project, considering a new approach to minimise upfront capital costs.
Learmonth expresses optimism about concluding negotiations on the solar project offer by year-end and providing a clear direction for future strategic developments in early 2024.
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