Caledonia released its results for the second quarter and six months ended 30 June 2024. Gold production at Blanket mine maintained a positive trajectory relative to last year with output growing 19% y/y in 2Q24 to 20,773 ounces, owing to higher tonnage and grade offsetting the lower gold recovery rate. Average grade achieved in the quarter was 3.31g/t ahead of averages of 3.25g/t and 3.23g/t in FY23 and 1Q24, respectively. For the 6 months, Bilboes oxide mine productions produced 401oz of gold from leaching of the heap leach pads, despite the mine being under care and maintenance since September 2023. Aggregate gold production for the 6 months as a result was at 38,650 ounces, versus 34,653 ounces recorded in the same period last year. Average-realised gold price for the quarter firmed 18% y/y to US$2,300/oz, whilst the average for the six months was 14% higher at US$2,179/oz. Revenue in Q2 grew 35.3% to US$50.12mn, whilst for the six months revenue grew 33.4% to US$88.64mn. Notably, production costs in the half year fell 2.85% to US$39.42mn. Whilst almost all cost lines under Blanket Mine saw marginal growth y/y, production costs at Bilboes fell 80% in light of the oxides project being placed under care and maintenance. As a result, consolidated on-mine costs decreased from US$1,135/oz in 1H23 to US$966/oz in 1H24. The AISC in the same period fell 7% to US$1,273/oz. The group however saw net foreign exchange losses deepen from US$2.08mn in 1H23 to US$6.15mn in 1H24. Despite this, the group overturned its loss position to a profit of US$13.17 mn. OCF/EBITDA picked up in the period closing at 90%. A dividend of USc 14 was posted for Q2, bringing the cumulative interim dividend to USc 28.
