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Highlights
- 2024 Production Performance: Caledonia achieved 76,656 ounces of gold production, in line with guidance and slightly above 2023's output.
- Strong Q4 Results: Q4 production totaled 19,841 ounces with a record 797,000 tonnes milled for the year.
- 2025 Capital Investment Plans: $41.8 million in capital expenditure to enhance operations, efficiency, and growth at Blanket Mine.
Caledonia Mining Corporation plc (LSE:CLDN) has announced its gold production results for the quarter and year ending December 31, 2024. The company achieved a total production of 76,656 ounces of gold from its Blanket Mine, which met the production guidance of 74,000 to 78,000 ounces. This represents a slight increase over 2023’s production of 75,416 ounces, highlighting consistent operations at the mine.
In the fourth quarter of 2024, Blanket produced 19,841 ounces of gold, with a significant increase in mine activity. The company reported a record 797,000 tonnes milled for the year, surpassing the milling capacity, and a strong 89,727 tonnes hoisted in December.
The 2024 production excludes an estimated 700 ounces of unrecovered gold from an 8,400-tonne stockpile, which is expected to contribute to a strong start for 2025. Overall, the company sold 76,271 ounces of gold in 2024, with 17,734 ounces sold in Q4.
Planned Investments for 2025
Looking ahead to 2025, Caledonia has outlined a capital expenditure program totaling $41.8 million, with $34.9 million allocated to Blanket Mine and $5.8 million designated for Bilboes and Motapa projects. These investments are aimed at modernising operations and improving mining efficiency at Blanket. While the investment plan is expected to incur short-term cost pressures, the long-term goal is to reduce operational costs, enhance profitability, and sustain the mine’s success.
Key projects for 2025 include:
- Blanket Development: $6.6 million to support planned development of 4,663 meters, including an additional 590 meters to increase flexibility and access higher-grade areas.
- Efficiency Improvements: $3.4 million earmarked for energy-saving initiatives at Blanket to drive cost savings.
- Operational Resilience: $4.8 million for the completion of the tailings storage facility and $0.7 million for IT upgrades as part of the company’s ongoing modernisation efforts.
- Exploration and Project Development: $5.8 million towards exploration at Motapa and the completion of a feasibility study at Bilboes, building on promising results from 2024.
Production and Cost Guidance for 2025
Caledonia’s production guidance for 2025 is projected to be between 73,500 to 77,500 ounces of gold. This estimate reflects ongoing mining in lower-grade areas, as outlined in the current mine schedule.
The company anticipates an on-mine cost for 2025 to range between $1,050/oz to $1,150/oz, up from $950/oz to $1,050/oz in 2024. The all-in sustaining cost ("AISC") is expected to increase to between $1,690/oz and $1,790/oz, compared to $1,450/oz to $1,550/oz in the previous year. These increases in costs are attributed to higher expenses for labour, HR, IT services, and sustaining capital expenditure as part of the company’s modernization efforts.
Additionally, ESG costs are now included in the 2025 on-mine cost at $20/oz, whereas the 2024 ESG cost was $1.3 million, or approximately $17/oz, and not part of the prior year's cost guidance range.
