Caledonia Mining Corporation, a gold mining company operating in Zimbabwe, faced a significant foreign exchange loss of US$3.6 million in the second quarter of 2023, due to the weakening of the Zimbabwean dollar (ZWL) against the US dollar.
The company’s operating profit and earnings per share (EPS) also declined compared to the previous quarter, as it missed its production target and incurred higher costs at its Blanket and Bilboes mines.
The company’s gross revenues were slightly lower than the second quarter of 2022, despite a small contribution from the Bilboes oxide operation, which was put on care and maintenance status at the end of the quarter.
In a statement, the company stated that it has addressed the production challenges at Blanket and expects to see improved performance and cash flows in the second half of the year.
The company also reported that it produced 18,512 ounces of gold in the quarter, with 17,436 ounces coming from Blanket and 1,076 ounces from Bilboes.