LONDON (ShareCast) - (Sharecast News) - Caledonia Mining reported a sharp rise in third-quarter revenue and profit on Monday, supported by stronger gold prices and increased sales from its Blanket mine in Zimbabwe, though the period was marked by a fatal accident at the site.
Revenue rose 52% year on year to $71.4m in the three months ended 30 September, while gross profit nearly doubled to $36.9m from $19.3m.

EBITDA climbed 162% to $33.5m, and profit after tax surged to $18.7m from $3.3m in the same period last year.

Gold production totalled 19,106 ounces at Blanket, with 20,355 ounces sold during the quarter and a further 2,861 ounces of bullion held at quarter-end that have since been sold.

The company also produced and sold 437 ounces from its Bilboes oxide mine.

The consolidated on-mine cost was $1,228 per ounce sold, with an all-in sustaining cost of $1,937 per ounce.

Free cash flow improved to $5.9m from a negative $2.4m a year earlier, while total liquidity stood at $44.3m, providing headroom for ongoing capital projects.

During the quarter, the company announced a fatality at Blanket following an accident related to secondary blasting.

Caledonia said it had launched a comprehensive review of safety procedures and training.

A feasibility study for the Bilboes project was expected to be released shortly.

The company also appointed July Ndlovu as an independent non-executive director on 5 November and declared a quarterly dividend of 14 cents per share, payable on 5 December.

"We continue to deliver solid operational and financial results at Blanket, producing 19,106 ounces of gold during the quarter and maintaining our focus on stable production and disciplined capital investment as we seek to modernise operations and improve mining efficiency at Blanket," said chief executive Mark Learmonth.

"The strong gold price environment, which increased 40% to average $3,434 per ounce, combined with higher production has resulted in a 52% increase in quarterly revenue and a significant uplift in free cash flow.

"However, it is with deep regret that we reported a fatality during the period."

Learmonth said the safety and wellbeing of the company's workforce remained "our highest priority".

"We have initiated a comprehensive review of our safety procedures and training, and we are committed to ensuring that such a tragedy does not occur again.

"We remain focused on delivering value for all stakeholders, making strategic investments across the business to strengthen our foundations for the future and to sustain long-term growth."

At 1506 GMT, shares in Caledonia Mining Corporation were up 6.93% at 2,160p.

Reporting by Josh White for Sharecast.com.

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