TORONTO – Caledonia Mining Corp. (TSX:CAL)says the impact of lower gold prices was mitigated somewhat by increased production and lower costs during the third quarter.
The Toronto-based company reports a net profit of $3.7 million, or 7.2 cents per share, during the quarter.
That compares with a net loss of $7.2 million, or 14.3 cents a share, in the same quarter of 2012, after a non-cash, non-recurring expense of $12.1 million arising on the implementation of indigenisation at its Blanket mine.
Gold production during the quarter was 12,042 ounces, well ahead of the target of 11,000 ounces.
The average price was $1,330 per ounce.
“As a low-cost producer with a robust balance sheet, Caledonia is well-positioned to continue to implement its growth strategy, notwithstanding the current volatility in the gold price,” said president and CEO Stefan Hayden.
Caledonia holds a 49 per cent interest in the Blanket Mine in Zimbabwe.