Shares of Caledonia Mining Corporation Plc (CMCL) plummeted 7.76% on Monday after the company reported mixed third-quarter results. Despite strong revenue growth, earnings fell short of analyst expectations, sparking a sell-off in the stock.
The gold mining company reported quarterly earnings of $0.77 per share, missing the analyst consensus estimate of $0.78 by 1.28%. However, this still represents a substantial 193.89% increase from earnings of $0.26 per share in the same period last year. Revenue for the quarter came in at $71.440 million, beating the analyst estimate of $65.100 million by 9.74% and marking a 52.43% increase year-over-year.
While Caledonia Mining saw impressive top-line growth driven by higher gold prices and increased production, investors appear concerned about rising costs impacting profitability. The company reported an all-in sustaining cost (AISC) of $1,937 per ounce sold in Q3, up 29% from $1,501 in the same quarter last year. Management attributed the cost increases to higher on-mine expenses, increased administrative costs, and higher royalties due to the elevated gold price environment.
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