Caledonia Mining flags better-than-expected full-year profit

(Sharecast News) - Caledonia Mining said on Wednesday that it expected its full-year profitability to be materially ahead of market expectations, supported by strong gold production at the Blanket Mine and sustained high gold prices. The AIM-traded company, which was set to report its second-quarter and half-year results on 11 August, said it anticipated delivering a profitable second quarter, building on solid momentum from the first three months of the year.

"We were pleased with the excellent production results announced on 16 July," said chief executive Mark Learmonth.

"Combined with a robust and sustained gold price, we are enjoying strong profitability.

"This reflects the hard work and dedication of the team at Blanket Mine and at group level, which we have strengthened significantly in recent times."

The firm said its outlook was based on the current production profile at Blanket, and assumed continued support from favourable gold prices.

Further details on the performance and updated guidance would be disclosed alongside the second-quarter results in August.

At 1307 BST, shares in Caledonia Mining Corporation were up 9.51% at 1,785p.

Reporting by Josh White for Sharecast.com.