South African mining company Caledonia (LON:CMCL) reported a 35 percent rise in profit over the first quarter of the year, boosted by lower costs and higher gold prices.

Adjusted earnings rose 51 percent over the three month period, with net attributable profit up 34.9 percent to $3.15 million.

Caledonia mined 12,924 ounces of gold, up 1 percent from the same period last year, with results boosted by an 8.2 percent rise in the released price of gold per ounce.

The group expects to produce between 55,000 and 59,000 ounces of gold for the full year, with earnings expected to be between 165 to 190 cents per share.

“We expect that production will deliver the usual increase in the second half of the year as we see the benefit of the increased level of mine development in the first half of the year, which will improve our access to higher grade areas,” the firm said.

“As we continue to grow production to our target of 80,000 ounces by 2021, maintain cost control and benefit from economies of scale we look forward to further increasing cash flows and earnings,” said Steve Curtis, Caledonia’s Chief Executive Officer.

Shares in Caledonia Mining (LON:CMCL) are currently down 1.46 percent at 675.00 (1011GMT).