Caledonia Mining gains 20% after six-fold increase in Q3 profits
Caledonia Mining (TSE:CAL), an African-focused mining and exploration company with a mine in Zimbabwe, shot up 20% to 11 cents a share in morning trading after announcing a six-fold increase in profits in Q3.
The company said that gross profit was $9.36 million compared to $1.607 million in the comparative quarter.
“This is almost a six-fold increase on the comparative quarter and is the seventh consecutive quarterly increase in gross profit,” said the company in a statement.
Net profit before tax showed an 11-fold increase of $8.442 million compared to $742,000 a year ago.
“Gold produced by the Blanket Mine in Zimbabwe in the Quarter increased by 18% to 9,743 ounces from the 8,226 ounces produced in the 2nd quarter 2011 (the “preceding quarter”) and was 97% higher than the 4,935 ounces of gold produced in 3rd quarter 2010 (the “comparative quarter”). This is the sixth consecutive quarterly increase in gold production.”
Caledonia Mining is an African-focused mining and exploration company. In addition to an operating gold mine in Zimbabwe, the company has two platinum-nickel exploration projects in South Africa and a cobalt-copper exploration project in Zambia.