Zimbabwe-focused gold producer Caledonia Mining Corporation managed to skate operational challenges brought about by the coronavirus (Covid-19) pandemic to boost output in the first quarter of 2020.

Production at Caledonia’s Gwanda-based gold mine – Blanket Mine – continued at around 93 percent of target during the initial three-week lockdown which commenced on March 30, 2020.

Operations at the mine have since returned to normal levels.

During the period under review, Blanket Mine produced 14,233 ounces of gold from its Blanket mine, up from the 11,948 ounces produced in the prior comparable period.

Gross revenues were US$23.6 million, a 48 percent increase on the US$15.9 million achieved in the first quarter of 2019.

The group posted a gross profit of US$10.6 million, which was a 146 percent increase on the US$4.3 million in Q1 2019 at a gross margin of 50 per cent (Q1 2019, 33 percent).

EBITDA of US$10.2 million, was recorded, a 162 percent increase on the US$3.9 million in Q1 2019 at a margin of 43 percent (Q1 2019, 21 percent).

All-in sustaining costs came in at US$879 per ounce, down significantly from the 2019 number of US$1,039 per ounce.

Said Caledonia chief executive Steve Curtis:

The coronavirus pandemic had no appreciable effect on Blanket or Caledonia during the quarter because lockdowns were only implemented by the Zimbabwe and South African governments to manage the virus at the end of the quarter.

“During the lockdowns, which extended for much of April, Blanket achieved approximately 93 percent of its normal target production by using its stocks of consumables and implementing measures to safeguard employees.

“In early May, Blanket resumed full production and I expect production to continue as planned provided Blanket’s workforce remains healthy and its supply chains and access to market for the gold produced remain open.”

Caledonia has maintained production guidance for the year at 53,000 to 56,000 ounces.

The Toronto Stock Exchange-listed firm announced a dividend of US$0.075 per share, which will be paid in May 2020.