Some 15,155 ounces of gold were produced in the quarter, taking the nine-month tally to 42,887 ounces – which compares to 13,646 and 38,306 ounces in the corresponding periods in 2019.
The company noted that the coronavirus (COVID-19) pandemic had no impact on production during the quarter.
Caledonia’s gross revenue rose by 27% to US$25.4mln from US$20mln in Q3 2019, whilst gross profit was marked 47% higher at US$12.5mln. Underlying earnings (EBITDA) totalled US$11.2mln, up 34% on the same period last year.
The company generated US$5.3mln of net cash from operating activities and ended the quarter with US$21.6mln of net cash and equivalents.
Caledonia paid an 8.5 cents per share during the quarter, and, a further 10 cents per share dividend was paid in October (both of these quarterly dividend payments were increased due to the strong financial and operating performance).
Caledonia chief executive Steve Curtis noted that production exceeded expectations over the first nine months of 2020.
“I am delighted by Blanket Mine’s continued strong operating performance in the quarter,” Curtis said in the results statement.
“Despite the disruption caused by the COVID-19 pandemic, the management initiatives which were implemented in 2019 have continued into 2020 and have resulted in a 12 per cent increase in gold production in the first nine months of 2020 compared to the same period of 2019.
“The resilience of Blanket’s operations during this difficult period is testament to the outstanding commitment of the entire team at Blanket Mine,” he added.
Looking to the year-end, the company said it has now increased its full-year 2020 production guidance to 55,000 to 58,000 ounces, from 53,000 to 56,000 ounces.
Curtis added: “The board will review Caledonia’s future dividend distributions as appropriate while considering the balance between delivering returns to shareholders and pursuing the significant growth opportunities within Zimbabwe and in line with a prudent approach to financial management.”