The gold mining company Caledonia Mining Corporation is on course to surpass its 80 000 ounces of gold production target for this year after producing 38 605 ounces in the first six months.

The company aims to become a multi-asset gold producer and has set a target production of between 73 000 and 80 000 ounces of gold this year.

From the production trends in the first six months, the target looks set to be surpassed.

“The first half of 2022 exceeded our expectations and we have now achieved our quarterly production target. Excellent production, along with a higher gold price and good cost control, has contributed to a 321 percent increase in IFRS earnings per share and a 31 percent increase in net cash from operating activities over the comparable quarter in 2021.” chief executive officer, Mr Mark Learmonth, said.

Meanwhile, in July, Caledonia announced it had signed a US$53.2 million agreement to buy Bilboes Gold Limited as part of its expansion drive.

The mining firm plans to increase production at Banket Mine to the target of 80 000 ounces of gold per annum, reduce operating costs and increase the flexibility to undertake further development and exploration, thereby safeguarding and enhancing Banket’s long-term future.

It also plans to commission the 12MW solar plant, which is expected to provide 27 percent of Banket’s total electricity demand.