NYSE- and Aim-listed gold miner Caledonia Mining Corporation has swung from a net loss of $7.9-million in 2023 to a net attributable profit of $17.9-million in 2024.

The company reported substantially stronger operating cash flow of $42-million for the year ended December 31, 2024, compared with an operating cash flow of $14.8-million in the prior year.

Basic earnings per share (EPS) of $0.91 compare with a loss a share of $0.43 in the prior year, while adjusted EPS of $1.25 in the reporting year compared with an adjusted loss a share of $0.10 in the prior year.

The group’s net cash and cash equivalents improved to -$8.7-million in the year under review, from -$11-million in the prior year.

Caledonia attributed its increased cash flow, as well as record gross profit of $77-million, which increased by 86% year-on-year, to higher gold prices and to lower production costs at the Bilboes oxide mine, in Zimbabwe. 

The company recorded a 23% increase in the average realised gold price, rising to $2 347/oz in the reporting year compared with an average realised gold price of $1 910/oz in the prior year.

Production at the Bilboes mine totalled 1 645 oz in the year under review, in line with the mine being on care and maintenance as of September 30, 2023.

Caledonia has appointed DRA Projects and other technical consultants to conduct a feasibility study on the Bilboes mine, to explore several material optimisation opportunities that have the potential to enhance economics and upfront capital requirements to optimise the operation.

The company’s flagship Blanket mine, in Zimbabwe, produced 76 656 oz of gold in the year, compared with 75 416 oz in the prior year.

Blanket’s production guidance for the 2025 financial year has been set at between 73 500 oz and 77 500 oz.

Caledonia plans to spend $41-million on capital projects in the new financial year, including $34-million on the Blanket project (modernisation and exploration) and $6.3-million for the Bilboes and Motapa projects.

The Motapa project, which is also in Zimbabwe, is undergoing initial exploration.

The company’s strategic focus remains on maintaining stable production at Blanket while investing in modernising operations to improve efficiency, as well as to continue optimising Bilboes to maximise net present value a share.

“Bilboes remains a highly attractive project and we are confident that we will find the optimal development method to maximise returns for shareholders.

“By taking a disciplined approach we can develop the project in a way that creates long-term value while maintaining financial prudence,” says CEO Mark Learmonth.