Caledonia Mining Corp PLC on Monday said its revenue dropped in the first quarter of the year as production fell behind expectations.
The Jersey-based, Zimbabwe-focused gold producer reported revenue for the first quarter of 2023 was $29.4 million, down 16% from $35.1 million a year ago.
Pretax loss was $768,000, swinging from a profit of $12.3 million the year prior.
The firm noted that gold production fell in the first quarter to 16,141 ounces, down 13% from 18,515 ounces in the same quarter of 2022.
Chief Executive Mark Learmonth said: ‘The first quarter of 2023 presented several operational challenges at Blanket which resulted in lower production and higher costs. We are confident these issues have been identified and addressed, and we reiterate our production guidance for Blanket of between 75,000 and 80,000 ounces of gold.’
Production at its Blanket project fell in the first quarter due to ‘minor mechanical breakdowns and logistical issues,’ the company said.
‘We were pleased to complete the acquisition of Bilboes at the start of the Quarter. Although the start-up of the Bilboes oxide mining activity was disappointing, this does not detract from the attraction of the main sulphide project,’ Learmonth added.
The firm said the feasibility study on its Bilboes project will be completed in the first quarter of 2024.
Caledonia shares fell 1.9% to 1,050 pence each in London on Monday afternoon.
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