TORONTO - Caledonia Mining Corp. (TSX:CAL) says lower gold prices cut into its bottom line in the second quarter.
The Toronto-based miner reports $3 million in net profit during the quarter _ down from $5.5 million in the same quarter a year ago.
Earnings per share were 5.8 cents, down from 11 cents last year and reflect a one-for-10 share consolidation which took place during the quarter.
Caledonia beat its planned target of selling 10,000 ounces of gold by selling 11,588 ounces during the quarter at an average price of US$1,368 per ounce.
"The second quarter of 2013 presented significant challenges as the gold price suffered an unprecedented fall in April 2013,‘‘ said president and CEO Stefan Hayden.
‘‘As a low-cost producer with a robust balance sheet, we believe Caledonia is well-positioned to continue to implement its growth strategy, notwithstanding the current volatility in the gold price."
Caledonia is focused on southern Africa and holds a 49 per cent interest in the Blanket Mine in Zimbabwe and a 100 per cent interest in the Nama base metals exploration project in Zambia.