http://www.proactiveinvestors.co.uk Proactiveinvestors RSS feed en Tue, 22 Aug 2017 04:21:11 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[Media files - Caledonia Mining optimistic despite challenging second quarter ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/7926/caledonia-mining-optimistic-despite-challenging-second-quarter-7926.html Tue, 15 Aug 2017 08:03:00 +0100 http://www.proactiveinvestors.co.uk/companies/stocktube/7926/caledonia-mining-optimistic-despite-challenging-second-quarter-7926.html <![CDATA[News - Caledonia Mining maintains dividend guidance for 2017 ]]> http://www.proactiveinvestors.co.uk/companies/news/182370/caledonia-mining-maintains-dividend-guidance-for-2017-182370.html Caledonia Mining Corporation PLC (LON:CMCL) produced just over 25,000 ounces of gold in the first half of 2017, at an all-in sustaining cost of US$856 per ounce.

However, on-mine costs per ounce did rise as grades fell and certain logistical constraints underground restricted output.

Operating cash flow during the second quarter of the year amounted to US$4.7 mln.

WATCH: Caledonia Mining optimistic despite challenging second quarter

It’s envisaged that the current dividend of US$0.275 cents per annum will be maintained.

“We remain confident of achieving our 2017 full year guidance of between 52,000 and 57,000 ounces,” said chief executive Steve Curtis.

The company remains on track to boost production to 80,000 ounces per year by 2021.

READ: Caledonia Mining Corporation on schedule with Blanket ramp up

 

 

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Mon, 14 Aug 2017 08:18:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/182370/caledonia-mining-maintains-dividend-guidance-for-2017-182370.html
<![CDATA[News - Caledonia Mining Corporation on schedule with Blanket ramp up ]]> http://www.proactiveinvestors.co.uk/companies/news/181234/caledonia-mining-corporation-on-schedule-with-blanket-ramp-up-181234.html Caledonia Mining Corporation PLC's (LON:CMCL TSE:CAL) Blanket gold mine has been in operation for many years now, and has managed to ride out the complexities of the Zimbabwean political situation relatively unscathed.

In large part that’s due to the indigenisation deal that Caledonia struck some years ago with local businessmen, with its own workers, and with other community groups.

Under the terms of that deal, Caledonia retains operational control of Blanket and ownership of 49% of it.

The terms of sale of the 51% stake stipulated that the company would be paid back out of cash flow from the mine itself, and on very commercial terms.

Accordingly, as with all the best deals, all parties felt that they came out of it well, and the company’s ability to operate in Zimbabwe has never been seriously in jeopardy.

WATCH: Caledonia Mining confident of hitting full year production targets Digging deeper

In recent years the concerns have been more about how to operate Blanket to maximum efficiency.

To that end the company has embarked on a heavy investment programme, the benefits of which are just beginning to show through.

Thus, a new tramming loop has been installed at the 750 metre level, allowing for the more efficient distribution of ore around the underground network of tunnels before it is brought to the surface for processing.

In addition, the company is also working on new shafts to increase the amount of ore it can haul to surface at any one time.

All told, the plan is to boost output in the longer term to more than 80,000 ounces per year by 2021.

 

Second half of 2017 to be stronger

In July, Caledonia said it expects to meet its gold production target this year through an improved second half performance.

The miner produced approximately 12,522 ounces of gold from the Blanket mine in the three months to June, about the same amount as a year ago.

Over the half year, output rose by 8.5% to 25,316oz, but Caledonia forecast output to rise over the next two quarters.

The target for the year is for production to be between 52,000oz and 57,000oz 

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Thu, 20 Jul 2017 15:19:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/181234/caledonia-mining-corporation-on-schedule-with-blanket-ramp-up-181234.html
<![CDATA[Media files - Caledonia Mining confident of hitting full year production targets ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/7818/caledonia-mining-confident-of-hitting-full-year-production-targets-7818.html Thu, 20 Jul 2017 12:10:00 +0100 http://www.proactiveinvestors.co.uk/companies/stocktube/7818/caledonia-mining-confident-of-hitting-full-year-production-targets-7818.html <![CDATA[News - Caledonia Mining Corporation expects production uptick in second half ]]> http://www.proactiveinvestors.co.uk/companies/news/181195/caledonia-mining-corporation-expects-production-uptick-in-second-half-181195.html Caledonia Mining Corporation PLC (LON:CMCL TSE:CAL) expects to meet its gold production target this year through an improved second half performance.

The Zimbabwe-based miner produced approximately 12,522 ounces of gold from the Blanket mine in the three months to June, about the same amount as a year ago.

Over the half year, output rose by 8.5% to 25,316oz, but Caledonia expects output to rise over the next two quarters.

The target for the year is for production to be between 52,000oz and 57,000oz and to hit 80,000oz by 2021.

Caledonia is digging out a new central shaft at Blanket and operating challenges of combining production with this ongoing underground development affected the first half even though output increased.

Steve Curtis, Caledonia's chief executive, said infrastructure constraints at the 750 metre level had affected its ability to move the larger amounts of ore and development waste.

To deal with that, Caledonia prioritised capital development tonnage over ore production tonnage during the second quarter. 

"The existing infrastructure constraints at Blanket are temporary and are expected to be fully alleviated when the new Central Shaft is commissioned in the second half of 2018.” 

Measures to alleviate the short-term infrastructure constraints should result in a higher quarterly production in the remaining quarters of 2017, Curtis added.

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Thu, 20 Jul 2017 07:42:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/181195/caledonia-mining-corporation-expects-production-uptick-in-second-half-181195.html
<![CDATA[News - Caledonia reports fatality at Blanket ]]> http://www.proactiveinvestors.co.uk/companies/news/180594/caledonia-reports-fatality-at-blanket-180594.html Caledonia Mining Corporation PLC (LON:CMCL) has announced a fatality at the Blanket gold mine in Zimbabwe in a mining-related accident that occurred on 7 July 2017.

The accident occurred in number 6 shaft area of the mine.

Management has notified the Minister of Mines and Mining Development and the Inspector of Mines and will provide all the necessary assistance to the Ministry of Mines Inspectorate Department in its enquiry into this incident.

The company said that until such a time as the outcome of this enquiry has been reached, no further details could be released.

The directors and management of Caledonia and Blanket have expressed their sincere condolences to the family and colleagues of the deceased.

"We take the safety of our employees very seriously at Blanket so we are very disappointed with this fatality,” said chief executive officer Steve Curtis.

“I join with my colleagues in expressing our sincere condolences to the family, colleagues and friends of the deceased".

 

 

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Mon, 10 Jul 2017 08:37:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/180594/caledonia-reports-fatality-at-blanket-180594.html
<![CDATA[Media files - Caledonia Mining to list on NYSE MKT ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/7523/caledonia-mining-to-list-on-nyse-mkt-7523.html Wed, 24 May 2017 09:20:00 +0100 http://www.proactiveinvestors.co.uk/companies/stocktube/7523/caledonia-mining-to-list-on-nyse-mkt-7523.html <![CDATA[News - Caledonia Mining Corporation to list on US small cap market ]]> http://www.proactiveinvestors.co.uk/companies/news/178248/caledonia-mining-corporation-to-list-on-us-small-cap-market-178248.html Caledonia Mining Corporation PLC (LON:CMCL TSE:CMCL)  is seek a listing on the New York Stock Exchange’s small cap market to boost liquidity and broaden its appeal to US investors.

To meet the share price threshold of at least a US$2 share price and the norm of over US$5 per share, the Zimbabwe-focused gold miner is to consolidate its shares on a 5 for one basis.

WATCH: Caledonia Mining to list on NYSE MKT

Shareholders with very small lots will be offered a cash alternative.

Leigh Wilson, chairman, said: "The company's proposed listing on NYSE MKT is a further step towards the transformation on which the business embarked with the adoption of the investment plan at Blanket mine in October 2014. 

"We expect that the increased gold production from the Blanket mine at a lower cost per ounce will result in attractive cash returns for both the company's shareholders and Blanket mine's local partners and stakeholders.

“It is appropriate that the company's shares are listed on a recognised US exchange that potentially offers the liquidity and improved access to institutional and retail investors in the US market which will support the company in its next stage of development."

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Wed, 24 May 2017 08:49:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/178248/caledonia-mining-corporation-to-list-on-us-small-cap-market-178248.html
<![CDATA[News - Caledonia Mining reports fatality at Blanket mine ]]> http://www.proactiveinvestors.co.uk/companies/news/177785/caledonia-mining-reports-fatality-at-blanket-mine-177785.html Caledonia Mining Corporation PLC (LON:CMCL TSE:CAL) has reported a fatality at the Blanket gold mine in Zimbabwe.

Mining at Eroica ore body, where the incident occured and that contributed 10% of production in the last quarter, was briefly halted pending a risk assessment and investigation though it has since restarted.

Caledonia has notified Zimbabwe’s Minister of Mines and Mining Development and the Inspector of Mines and will provide all the necessary assistance to the Ministry of Mines Inspectorate Department in its enquiry into this incident.

Steve Curtis, chief executive, said: "This is a serious setback in our efforts to continuously improve safety at Blanket Mine.

“The previous fatality was in April 2015. Our heartfelt condolences go out to the family, colleagues and friends of the deceased".

-- update for Eroica ore body re-start--

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Mon, 15 May 2017 08:35:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/177785/caledonia-mining-reports-fatality-at-blanket-mine-177785.html
<![CDATA[News - Caledonia Mining's profits double as production and gold price rise ]]> http://www.proactiveinvestors.co.uk/companies/news/177643/caledonia-mining-s-profits-double-as-production-and-gold-price-rise-177643.html Caledonia Mining Corporation (LON:CMCL) doubled profits as production from the Blanket mine in Zimbabwe rose by 18% in the three months to March.

Output totalled almost 12,800oz, up from 10,800oz, with costs US$30 per oz lower at US$659 and sustaining costs down US$99 at US$857.

Steve Curtis, chief executive said: “As the Blanket Mine has demonstrated in the past, increased production results in lower unit costs as the fixed cost component is spread across more production ounces.

Caledonia also benefited from a higher gold price of $1,213 per ounce, which lifted earnings to 5.3c or 96% higher than a year ago.

The miner is in the middle of a major upgrade to 49% owned Blanket, with the Central Shaft to be taken down by around another 400m to 1,080m

"Once complete, I expect the Central Shaft to enhance the operating efficiency at Blanket as it will transform the existing underground infrastructure, reduce travel times for employees to get to mining areas, shorten the tramming distances and reduce the time required to hoist ore to surface", said Curtis.

“Our cash balance declined slightly from the 2016 year-end figure of $14.3m, due to significant capital investment during the quarter and the normalisation of Blanket's working capital.

“I expect that 2017 will be the final year of significant capital investment in the Central Shaft project,” he said.

Yesterday Caledonia adjusted its production target for 2017 to between 52,000 and 57,000 ounces to reflect the work on the Central Shaft.

On the mining background in Zimbabwe, Curtis said electricity supply is variable but foreign exchange availability has improved.

The export incentive credit introduced in 2016 contributed US$576,000 in the quarter.

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Thu, 11 May 2017 08:40:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/177643/caledonia-mining-s-profits-double-as-production-and-gold-price-rise-177643.html
<![CDATA[Media files - Caledonia Mining 's Blanket development going well says CEO ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/7421/caledonia-mining-s-blanket-development-going-well-says-ceo-7421.html Tue, 09 May 2017 12:28:00 +0100 http://www.proactiveinvestors.co.uk/companies/stocktube/7421/caledonia-mining-s-blanket-development-going-well-says-ceo-7421.html <![CDATA[News - Caledonia Mining tweaks production guidance as development work progresses ]]> http://www.proactiveinvestors.co.uk/companies/news/177513/caledonia-mining-tweaks-production-guidance-as-development-work-progresses-177513.html Caledonia Mining Corporation PLC (LON:CMCl TSE:CAL) has trimmed its production estimate from Zimbabwe's Blanket gold mine this year due to ongoing underground development work.

The UK and Toronto-listed group now expects to produce between 52-000–57,000 ounces of gold in 2017 compared to 60,000 ounces previously, though this still represents a rise on 2016 of 4% at the lower end and 14% at the top it said.

Because of the work to deepen the central shaft at Blanket, it has not been able to transport the volume of material necessary for 60,000 ounces of gold without disrupting the mine development plans.

WATCH: Caledonia Mining's CEO says Blanket development going well

Earnings guidance for 2017 has also been reduced from 34c to between 24 and 31c per share assuming a gold price of $1,275 per ounce, though this too would be 12% higher at the bottom compared to 2016.

Dividends are not likely to be affected by the lower production this year, the miner added.

Expansion of the central shaft is on schedule for completion by the fourth quarter of 2018.

The miner is drilling down to 1,080m to enable mining below 750m and open up more of the reserves at the mine.

When finished, Caledonia expects output of approximately 80,000 ounces per year by 2021 and this estimate was not affected by today’s revision.

Shares eased 2% to 100.5p.

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Tue, 09 May 2017 11:23:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/177513/caledonia-mining-tweaks-production-guidance-as-development-work-progresses-177513.html
<![CDATA[Media files - Technical analyst Zak Mir tips Caledonia Mining shares to add 50% ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/7305/technical-analyst-zak-mir-tips-caledonia-mining-shares-to-add-50-7305.html Thu, 20 Apr 2017 09:35:00 +0100 http://www.proactiveinvestors.co.uk/companies/stocktube/7305/technical-analyst-zak-mir-tips-caledonia-mining-shares-to-add-50-7305.html <![CDATA[News - Caledonia Mining on track to hit targets in 2017 as quarterly production at the 49%-owned Blanket mine rose by 18%. ]]> http://www.proactiveinvestors.co.uk/companies/news/176648/caledonia-mining-on-track-to-hit-targets-in-2017-as-quarterly-production-at-the-49-owned-blanket-mine-rose-by-18-176648.html Zimbabwe-based gold miner Caledonia Mining Corporation Plc (LON:CMCL) is on track to hit targets this year as quarterly production at the 49%-owned Blanket mine rose by 18%.

Some 12,794 ounces of gold were produced, putting it on track for annual production of 60,000 ounces. The long-term target is 80,000 ounces by 2021.

WATCH: Zak Mir on Caledonia Mining

Steve Curtis, Caledonia's chief executive, said progress with the development below 750m at the mine was on schedule.

Quarter-on-quarter production dipped by 6% but Curtis said this was in line with the historical quarterly production profile at Blanket with holidays and mine scheduling affecting production.

CLICK here to sign-up for the Proactive newsletter  ]]>
Thu, 20 Apr 2017 08:30:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/176648/caledonia-mining-on-track-to-hit-targets-in-2017-as-quarterly-production-at-the-49-owned-blanket-mine-rose-by-18-176648.html
<![CDATA[Media files - Caledonia Mining's Maurice Mason presents at the Mining Capital Conference - March 2017 ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/7210/caledonia-mining-s-maurice-mason-presents-at-the-mining-capital-conference-march-2017-7210.html Mon, 03 Apr 2017 09:42:00 +0100 http://www.proactiveinvestors.co.uk/companies/stocktube/7210/caledonia-mining-s-maurice-mason-presents-at-the-mining-capital-conference-march-2017-7210.html <![CDATA[News - Caledonia Mining achieves record fourth quarter gold production ]]> http://www.proactiveinvestors.co.uk/companies/news/175131/caledonia-mining-achieves-record-fourth-quarter-gold-production-175131.html Caledonia Mining Corporation’s (LON:CMCL, TSE:CAL) fourth quarter earnings gained, boosted by record gold production, lower costs and higher prices of the yellow metal.

Gold production jumped to 13,891 ounces (oz) in the three months to 31 December from 11,515oz in the year-ago period, supported by output at the Blanket mine in Zimbabwe, in which Caledonia owns a 49% stake.

The group also achieved record full year gold production, which rose to 50,351 oz in 2016 from 42,804 oz the prior year.

"Caledonia finished 2016 with a strong quarter with Blanket producing 13,591 ounces at an all-in sustaining cost (AISC) of $843 per ounce, a new quarterly production record for the mine,” said chief executive Steve Curtis.

“Full year 2016 production of 50,351 ounces at an AISC of $912 per ounce also represents a new annual production record for Blanket and is an achievement for which all of our staff can be justifiably proud.”

Watch: Caledonia Mining's Mark Learmonth delighted with record production

Gross profit in the fourth quarter rose to US$6.8mln from US$3.4mln and adjusted basic earnings per share (EPS) rose to 7.8c from 1.1c.

A robust fourth quarter supported full year growth with gross profit increasing to US$23.4mln from US$12.1mln and adjusted basis EPS rising to 21.4c from 8.8c.

The average realised gold price in the final three months rose to US$1,187 per oz from US$1,083 per oz a year ago while production costs fell to US$6.8mln from US$7.1mln.

Across the year gold prices averaged US$1,232 per oz, compared to US$1,139 per oz in 2015. Production costs in the full year rose to US$32.1mln from US$30.1mln.

The company ended the year with a stronger balance sheet with net cash rising to US$6.9mln in the fourth quarter from $2.3mln the previous year. For the full year, net cash jumped to US$23.0mln from US$6.8mln in 2015.

Caledonia maintained a full year dividend of 5.5c.

On the outlook for 2017, Curtis said the company expects to post a 19% increase in full year production to 60,000 oz as the ramp-up at Blanket towards 80,000 oz by 2021 continues. Caledonia estimates 2017 AISC of US$810 to US$850 per oz, down 7% and 11% respectively on 2016.

“"Caledonia remains well positioned for future growth and continues to evaluate investment opportunities as they arise. I look forward to updating the market with our continued progress over the course of 2017,” Curtis said. 

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Tue, 21 Mar 2017 08:33:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/175131/caledonia-mining-achieves-record-fourth-quarter-gold-production-175131.html
<![CDATA[Media files - Caledonia Mining's Mark Learmonth delighted with record production ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/7133/caledonia-mining-s-mark-learmonth-delighted-with-record-production-7133.html Tue, 21 Mar 2017 08:14:00 +0000 http://www.proactiveinvestors.co.uk/companies/stocktube/7133/caledonia-mining-s-mark-learmonth-delighted-with-record-production-7133.html <![CDATA[News - Caledonia Mining confident of earnings uplift as production hits record ]]> http://www.proactiveinvestors.co.uk/companies/news/171451/caledonia-mining-confident-of-earnings-uplift-as-production-hits-record-171451.html Caledonia Mining Corporation Plc (LON:CMCL) has enjoyed a record quarter for gold production from the Blanket mine in Zimbabwe.

Some 13,591 ounces of gold were produced in the last three months, an 18% increase on a year ago and 1% up quarter on quarter.

Steve Cutis, chief executive, said teh rising production meant it was confident of achieving a significant improvement in earnings for 2017.

“As we increase production we expect earnings will continue to benefit from the increased sales volumes and from a lower average cost per ounce as fixed production costs and overheads are spread across higher production.

Over the year, the mine produced 50,351 ounces, up 17.6% and a new annual production record as the miner began work below 750 metres

The previous record from underground operations was 45,530 ounces achieved in 2013.

Target gold production for 2017 is approximately 60,000 ounces at an estimated on-mine cost in the range of $600 to $630 per ounce and an All-in Sustaining Cost in the range of $810 to $850 per ounce, with the target still 80,000 ounces annually by 2021.

The sinking of the new central shaft was also going to plan and reached a depth of 534m by year end said Curtis.

 

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Wed, 11 Jan 2017 07:51:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/171451/caledonia-mining-confident-of-earnings-uplift-as-production-hits-record-171451.html
<![CDATA[News - Caledonia Mining an AIM rarity - a dividend paying gold junior ]]> http://www.proactiveinvestors.co.uk/companies/news/171082/Caledonia-Mining-an-AIM-rarity-a-dividend-paying-gold-junior--171082.html Caledonia Mining Corporation PLC (LON:CMCL) has burnished its reputation for being one of the few junior gold stocks on London’s junior market paying a dividend – and a decent one at that.

The company, which runs the Blanket Mine in Zimbabwe, is ready to distribute its latest quarterly tranche – 1.375 cents a share, giving an annual payout of 5.5p.

The ex-dividend dates are January 11 for Canadian investors and a day later for holders of the shares here in the UK.

The distribution of cash comes as Caledonia continues to invest in ramping up production from the deeper lying mineralisation at Blanket.

Production is forecast to be in the order of 60,000 ounces of the yellow metal this year, rising to 80,000 ounces by 2021.

“The continued payment of dividends to our shareholders is a key component of our strategy as we invest in future production growth and we are particularly proud of being able to continue to pay a healthy dividend whilst we invest in expanding production,” said Caledonia chief executive Steve Curtis.

“I am confident that as gold production continues to increase at the Blanket Mine as a result of our investment plan, the cost per ounce of gold produced will continue to fall.”

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Tue, 03 Jan 2017 08:11:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/171082/Caledonia-Mining-an-AIM-rarity-a-dividend-paying-gold-junior--171082.html
<![CDATA[Media files - Caledonia Mining's Maurice Mason presents at the Mining Capital Conference ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/6537/caledonia-mining-s-maurice-mason-presents-at-the-mining-capital-conference-6537.html Mon, 05 Dec 2016 10:23:00 +0000 http://www.proactiveinvestors.co.uk/companies/stocktube/6537/caledonia-mining-s-maurice-mason-presents-at-the-mining-capital-conference-6537.html <![CDATA[News - Caledonia Mining says no impact from Zimbabwe's new bond notes ]]> http://www.proactiveinvestors.co.uk/companies/news/169819/caledonia-mining-says-no-impact-from-zimbabwe-s-new-bond-notes-169819.html Caledonia Mining Corporation Plc (LON:CMCL TSE:CAL) said there will no effect on its payment arrangements following the  recent introduction of bond notes by the Reserve Bank of Zimbabwe.

The RBZ, Zimbabwe’s central bank, announced the introduction of the new notes at the weekend with distribution beginning yesterday.

Bank officials denied the notes are effectively a new currency for Zimbabwe. They were pegged on a 1:1 ratio with the US dollar reports but from the country are that they are already trading at a discount.

Since the start of 2014, Caledonia has had to sell all gold produced from its 49%-owned Blanket mine to Fidelity Printers and Refiners Limited, a subsidiary of the RBZ, 

So far all sale proceeds have been received within 48 hours of delivery to Fidelity in US dollars at a price which is 98.75% of the London afternoon "fix" on the day after delivery.

Separately, Caledonia said Mark Learmonth, finance director, has bought 11,500 shares at 84p.

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Thu, 01 Dec 2016 07:48:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/169819/caledonia-mining-says-no-impact-from-zimbabwe-s-new-bond-notes-169819.html
<![CDATA[News - Caledonia Mining enjoys another quarter of record production ]]> http://www.proactiveinvestors.co.uk/companies/news/168913/caledonia-mining-enjoys-another-quarter-of-record-production-168913.html Caledonia Mining Corporation PLC (LON:CMCL) had a simple message in its third quarter results: more gold produced at a lower cost than last year.

The company’s majority-controlled Blanket gold mine in Zimbabwe churned out 13,428 ounces in the three months to 30 September, up from 10,927 ounces in the same period of 2015.

The increase was mainly due to a rise in tonnes mined and milled following the completion of infrastructure works. A third mill was installed at Blanket during the quarter, and this should further improve plant capacity.

Gold was produced at an all-in sustaining cost (AISC) of US$969 an ounce, versus US$1,005 an ounce a year earlier, despite a higher royalty cost resulting from a rise in the gold price.

The company expects to see further reductions in the average cost of production, as output ramps up, with the company targeting an AISC of somewhere between US$810 and US$850.

Next year the company is looking to produce 60,000 ounces of gold, which would be around a 20% increase on 2016’s output, and expects to crank this up towards 80,000 ounces by 2021.

Gold was sold at an average price of US$1,312 an ounce, compared to US$1,106 an ounce in the third quarter of last year.

Profit before tax rose to US$4.11mln from US$2.24mln the previous year, but the tax bill shot up to US$2.29mln from £703,000.

Foreign exchange movements also put a dent in earnings, and diluted earnings per share (EPS) eased to 1.9 cents from 2.6 cents the year before. Adjusted EPS, which excludes foreign exchange movements, rose to 4.4 cents from 2.9 cents last year.

The company’s cash pile diminished to US$12.39mln at the end of the quarter from US$14.65mln a year earlier, reflected continued capital investment, but was up from US$10.6mln at the end of June 2016.

The company recently increased its dividend payments to 5.5 cents a year, and with earnings running comfortably above that rate it expects to maintain that dividend rate, barring unforeseen circumstances.

"The transformational Central Shaft project continues to progress well with completion on track for mid-2018 with the shaft depth currently standing at 330 metres. The completed shaft down to a level of 1,080 metres will establish Blanket as a large, low cost operation with excellent prospects to extend the existing mine life,” said Steve Curtis, Caledonia’s president and chief executive officer

"We remain positive about the future prospects for Caledonia and look forward to updating the market with our progress in the future," he added.

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Mon, 14 Nov 2016 07:42:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/168913/caledonia-mining-enjoys-another-quarter-of-record-production-168913.html
<![CDATA[News - Caledonia Mining restates output guidance but expects 2016 earnings hit ]]> http://www.proactiveinvestors.co.uk/companies/news/168397/caledonia-mining-restates-output-guidance-but-expects-2016-earnings-hit Gold miner Caledonia Mining Corporation PLC (LON:CMCL, TSE:CAL) expects to meet market expectations for revenue but not for profit for 2016, it said, outlining performance at its Blanket mine.

Average grade in October was below expectations, but this is temporary and the Zimbabwean mine is still on track to produce 50,000 ounces of gold this year, the firm told investors.

Underlying performance is expected to be in-line and operations remain robustly cash generative, it added, but earnings per share for the year to end 2016 are expected to lower than expectations, although still significantly higher than 2015.

This is due to various factors, including the strong South African Rand against the US dollar and the increased share price since the start of 2016, meaning share-based expenses are now higher.

Caledonia reiterated that the investment programme at Blanket continues to be implemented as planned, funded internally.

Blanket remains on track to increase production from 42,800 ounces of gold in 2015 to around 80,000 ounces of gold in 2021, it added.

Broker Panmure repeated a 'hold' stance on the shares, noting it had downgraded the stock at the start of September.

Analyst Kieron Hodgson said while he sees longer term value in the firm, short term optimism was too bullish.

The broker reckons the investment programme to increase production to over 80,000 ounces a year by 2021, the low-cost nature of the operation, an unrivalled yield and significant cash resources offer enough incentives for investors to ensure the Caledonia story remains interesting.

"... however, following the latest update we retain our view that taking profits from the exceptional performance in 2016 is preferable," said the analyst.

Caledonia shares dropped 9.43% to 120p on the day.

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Wed, 02 Nov 2016 08:39:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/168397/caledonia-mining-restates-output-guidance-but-expects-2016-earnings-hit
<![CDATA[Media files - Caledonia Mining 'very much on track' to hit production targets, says CFO ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/6134/caledonia-mining-very-much-on-track-to-hit-production-targets-says-cfo-6134.html Thu, 06 Oct 2016 12:15:00 +0100 http://www.proactiveinvestors.co.uk/companies/stocktube/6134/caledonia-mining-very-much-on-track-to-hit-production-targets-says-cfo-6134.html <![CDATA[News - Caledonia Mining ups gold production by 23% ]]> http://www.proactiveinvestors.co.uk/companies/news/166939/caledonia-mining-ups-gold-production-by-23-166939.html Wed, 05 Oct 2016 07:59:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/166939/caledonia-mining-ups-gold-production-by-23-166939.html <![CDATA[News - Caledonia Mining declares twelfth quarterly dividend ]]> http://www.proactiveinvestors.co.uk/companies/news/166887/caledonia-mining-declares-twelfth-quarterly-dividend-166887.html The strong performance of the Blanket gold mine in Zimbabwe, operated and 49%-owned by Caledonia Mining Corporation Limited (LON:CMCL), has allowed for a string of dividend payments to come through from the company, dating back long before the most recent strength in the gold price.

That strength, however, has played through in the most recent payments. In July, Caledonia announced that the quarterly payout would rise from one and one-eighth US cents per share to one and three-eighth cents, a 22 per cent increase.

The increase has been maintained in the most recent quarterly payout, declared at the market open on 4 October and due to be paid at the end of the month.

Meanwhile, production increases at Blanket remain on track to take output to 80,000 ounces of gold per year by 2021.

"Blanket Mine's operating performance continues to improve with the investment programme being implemented as planned, resulting in continued robust cash generation for Caledonia Mining and Blanket's indigenous partners,” said chief executive Steve Curtis.  

 

 

 

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Tue, 04 Oct 2016 08:01:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/166887/caledonia-mining-declares-twelfth-quarterly-dividend-166887.html
<![CDATA[News - Caledonia Mining still cheap and going higher says broker ]]> http://www.proactiveinvestors.co.uk/companies/news/166555/caledonia-mining-still-cheap-and-going-higher-says-broker-166555.html Zimbabwe-based gold miner Caledonia Mining Corporation PLC (LON:CMCL TSX:CAL) has increased the dividend once this year, but broker WH Ireland expects more hikes as grades and cashflow improve.

A rising gold price and boost to its earnings in sterling from a lower pound/dollar exchange rate have strengthened the tailwind and WH Ireland has upped its target price by nigh on 40% to 146p.

Not that the improvement has gone unrecognised.

Caledonia shares sit at a five year high of 135p and have doubled this year already but the miner remains debt free and has options short-to-medium term to increase the dividend again if it so wishes believes the broker.

Caledonia bought the mine in 2006 and has rejuvenated it, according to Ireland.

It is in the process of completing a $65mln expansion and refit at the mine – possibly one of the largest infrastructure projects in Zimbabwe at the current time.

Gold production is up on the back of increased ore tonnage and grade as ore from No.6 Winze area and the decline into AR South is increasingly hoisted and processed. 

This is reducing cash costs and increasing profits and cash generation will continue rise.

Once the new Central Shaft is finished it will transform the economics of the mine as the AR Main and AR South and take production over 80,000oz of gold annually. 

WH Ireland also ascribes no value either to satellite deposits around Blanket that have demonstrated mineralisation and could add more gold ounces.

Caledonia owns 49% of the Blanket with local groups the remainder and has had no problem in taking cash out of Zimbabwe in the ten years it has run it.

Buy with a target price of 146p is the broker’s new view.

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Tue, 27 Sep 2016 16:04:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/166555/caledonia-mining-still-cheap-and-going-higher-says-broker-166555.html
<![CDATA[News - Caledonia Mining fires on all cylinders in latest quarter ]]> http://www.proactiveinvestors.co.uk/companies/news/129235/caledonia-mining-fires-on-all-cylinders-in-latest-quarter-129235.html Caledonia Mining Corporation PLC (LON:CMCL TSX:CAL) posted significantly better second quarter results as a major upgrade to its Blanket gold mine in Zimbabwe began to take effect.

Underlying earnings rose 300% to 6.1c and more than doubled over the half year, with a higher gold price, greater production and lower costs also boosting the numbers.

Gold is currently trading close to a three-year high.

Production, meanwhile, rose 15.6% as more tonnes were mined and milled and the average grade rose to 3.47 grammes per tonne from 3.25g/t a year ago.

Steve Curtis, Caledonia’s chief executive, said he expects average grades to rise to 4 g/t as production from deeper ore bodies increases.

All-In sustaining costs for the quarter fell by 9.5% to $936 per ounce and should fall further as production increases.

Caledonia’s plan for 49% -owned Blanket is to double annual production to 80,000 ounces by 2021. The first half of this year saw production of 23,330 oz.

The miner has already announced a 22% dividend hike to 1.375c per quarter and said today the new payment was covered four times by earnings and 10 times by cashflow. Cash on the books at the end of the half was US$10.6mln with no debt.

Curtis added that completion of the Central Shaft remains on track for mid-2018 with the shaft depth currently standing at 170m.

“The completed shaft down to a level of 1,080m will establish Blanket as a large, low cost operation with excellent prospects to extend the existing mine life.”

Following the news shares added over 8% to stand at 97p each.

Broker Shore Capital highlighted particularly that operational cash generation improved dramatically, to US$7.2mln against US$1.9mln in the second quarter, which in turn meant the cash balance rose to US$10.6mln, with the group  remaining debt-free.

Blanket was able to resume dividend payments post-period end, in early August 2016.

The improved cash generation and resumption of dividends should further bolster the balance sheet, which remains strong, it said.

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Thu, 11 Aug 2016 07:42:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/129235/caledonia-mining-fires-on-all-cylinders-in-latest-quarter-129235.html
<![CDATA[Media files - Revamp pays off for Caledonia Mining Corporation ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/5383/revamp-pays-off-for-caledonia-mining-corporation-5383.html Thu, 11 Aug 2016 07:10:00 +0100 http://www.proactiveinvestors.co.uk/companies/stocktube/5383/revamp-pays-off-for-caledonia-mining-corporation-5383.html <![CDATA[News - Caledonia Mining boosts resource base of its Zimbabwe gold mine ]]> http://www.proactiveinvestors.co.uk/companies/news/128728/caledonia-mining-boosts-resource-base-of-its-zimbabwe-gold-mine-128728.html Caledonia Mining Corporation PLC (LON:CMCL, TSX:CAL) has unveiled a significant upgrade to the resource base of its Blanket Gold Mine in Zimbabwe.

Following a drilling programme, 343,000 tonnes have been upgraded from the inferred to the higher-confidence indicated resource category.

At the same time an additional 1.3mln tonnes of new inventory has been added to inferred resource base.

This latest upgrade combined with the results from a similar exercise last December have boosted the reserves and indicated resources that can be used in the life of mine plan by 67% to just under 4.9mln tonnes.

Chief executive Steve Curtis said: "I am confident that the life of mine will be further supplemented by resource additions and upgrades as a result of the increased exploration activity, both at Blanket and also at the satellite projects."

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Thu, 28 Jul 2016 08:02:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/128728/caledonia-mining-boosts-resource-base-of-its-zimbabwe-gold-mine-128728.html
<![CDATA[Media files - “We’ll be digging up more gold for longer.” Caledonia Mining’s Learmonth on Blanket upgrade ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/5332/well-be-digging-up-more-gold-for-longer-caledonia-minings-learmonth-on-blanket-upgrade-5332.html Thu, 28 Jul 2016 05:35:00 +0100 http://www.proactiveinvestors.co.uk/companies/stocktube/5332/well-be-digging-up-more-gold-for-longer-caledonia-minings-learmonth-on-blanket-upgrade-5332.html <![CDATA[News - Caledonia Mining names mining specialist as new independent director ]]> http://www.proactiveinvestors.co.uk/companies/news/128618/caledonia-mining-names-mining-specialist-as-new-independent-director-128618.html Former mining analyst and chief executive of Africa gold play Amara Mining John McGloin has been named a new independent director at Caledonia Mining Corporation Plc (LON:CMC) .

McGloin was executive chairman and chief executive at Amara between 2012 and 2016, a group focused on the Yaoure gold project in Cote d'Ivoire in West Africa.

In April this year, Amara merged with Australian Perseus Mining Limited.

McGloin then joined the board of Perseus as a non-executive director, a role which he intends to combine with his role at Caledonia.

Caledonia chairman Leigh Wilson said: "John's technical background as a geologist and his practical experience in managing a gold exploration and development company adds further strength and a broader perspective to Caledonia's board. 

"John's experience will help to ensure that the robust mine development plan, which is currently under way at the Blanket Mine in Zimbabwe, will be successfully implemented.

"Blanket is approximately 20 months into a four year development programme, as a result of which we expect Blanket to increase production to approximately 80,000 ounces of gold per annum and re-inforce its position as a low-cost operator with excellent long-term exploration and development potential."

Caledonia also said that Maurice Mason has been appointed vice president of investor relations and corporate development.

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Tue, 26 Jul 2016 08:36:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/128618/caledonia-mining-names-mining-specialist-as-new-independent-director-128618.html
<![CDATA[Media files - Caledonia Mining delivering exactly as promised says CFO Learmonth ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/5260/caledonia-mining-delivering-exactly-as-promised-says-cfo-learmonth-5260.html Mon, 11 Jul 2016 08:13:00 +0100 http://www.proactiveinvestors.co.uk/companies/stocktube/5260/caledonia-mining-delivering-exactly-as-promised-says-cfo-learmonth-5260.html <![CDATA[News - Second quarter gold production up for Caledonia Mining ]]> http://www.proactiveinvestors.co.uk/companies/news/128034/second-quarter-gold-production-up-for-caledonia-mining-128034.html Caledonia Mining Corporation PLC (LON:CMC) looks to be well on track to meet its full year production target of 50,000 ounces of gold, following a robust set of second quarter numbers from the company’s flagship Blanket mine in southern Zimbabwe.

In the three months to June 2016 production at Blanket rang it at 12,509 ounces of gold, a 20 per cent increase on the amount produced in the comparable period a year ago, and a 12 per cent increase on the first quarter of this year.

“Production in the second quarter was slightly higher than planned,” said Caledonia’s chief executive Steve Curtis.

He highlighted as one key reason the mining of higher grades at new areas of Blanket that are currently undergoing development work ahead of a planned push to increase production significantly in a couple of years’ time.

“Caledonia and the Blanket mine remain on track to deliver our target performance of 50,000 ounces for 2016,” he said.

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Mon, 11 Jul 2016 02:46:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/128034/second-quarter-gold-production-up-for-caledonia-mining-128034.html
<![CDATA[Media files - Caledonia Mining raises dividend 22% ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/5229/caledonia-mining-raises-dividend-22-5229.html Tue, 05 Jul 2016 08:10:00 +0100 http://www.proactiveinvestors.co.uk/companies/stocktube/5229/caledonia-mining-raises-dividend-22-5229.html <![CDATA[News - Caledonia Mining increases dividend as confidence grows ]]> http://www.proactiveinvestors.co.uk/companies/news/127824/caledonia-mining-increases-dividend-as-confidence-grows-127824.html Caledonia Mining Corp (LON:CMCL, TSE:CAL) cheered investors with a 22% increase in the annual dividend, reflecting confidence that earnings and cash flow will increase.

The operator of the Blanket gold mine in Zimbabwe declared an increased quarterly payout to US$0.01375 a share, representing an annualised dividend of 5.5 cents per share compared to the previous annualised dividend of 4.5 cents.

Chief Executive Steve Curtis, said: "The declaration of the increased dividend reflects the company's confidence that its earnings and cash generation will increase.

"In late March 2016, production started from the Blanket ore bodies below 750 meters following completion of the No. 6 Winze. 

"In March 2016, the decline development into the AR South ore body below 750 meters was also completed and further improved Blanket's operational flexibility.  I am now increasingly confident that the projected production targets of 50,000 ounces in 2016 and 65,000 ounces in 2017 will be realised.

"The planned increases in production in 2016 and 2017 are expected to result in a lower average cost of production as fixed costs are spread across an increased number of gold ounces. 

"Approximately 80 per cent of Blanket's costs and 100 per cent of Caledonia's costs are fixed and the marginal cost is approximately $160 per ounce."

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Tue, 05 Jul 2016 07:38:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/127824/caledonia-mining-increases-dividend-as-confidence-grows-127824.html
<![CDATA[Media files - Caledonia Mining CFO: You don't need to be a crazy gold guy to invest ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/5052/caledonia-mining-cfo-you-don-t-need-to-be-a-crazy-gold-guy-to-invest-5052.html Thu, 19 May 2016 08:27:00 +0100 http://www.proactiveinvestors.co.uk/companies/stocktube/5052/caledonia-mining-cfo-you-don-t-need-to-be-a-crazy-gold-guy-to-invest-5052.html <![CDATA[Media files - Caledonia Mining CFO Mark Learmonth speaks to investors at Mining Capital Conference ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/5046/caledonia-mining-cfo-mark-learmonth-speaks-to-investors-at-mining-capital-conference-5046.html Tue, 17 May 2016 14:35:00 +0100 http://www.proactiveinvestors.co.uk/companies/stocktube/5046/caledonia-mining-cfo-mark-learmonth-speaks-to-investors-at-mining-capital-conference-5046.html <![CDATA[News - Caledonia Mining chairman takes hit after unwitting share sale ]]> http://www.proactiveinvestors.co.uk/companies/news/126009/caledonia-mining-chairman-takes-hit-after-unwitting-share-sale-126009.html Caledonia Mining (LON:CMCL) chairman Leigh Wilson is around £19,000 out of pocket after he had to buy back shares in the company sold by his financial adviser without his knowledge.

The Zimbabwe-based gold miner revealed yesterday that Wilson only found out last week his entire stake of 75,200 shares was sold at the end of February for 63 cents each.

He has now restored his interest through the purchase of 75,000 shares.

While the good news for Caledonia is that the gold price has rallied and expansion plans are progressing well, the bad news for Wilson is that the share price has recognised this.

Instead of US$0.63, the price he had to pay was almost C$1.01, a 60% rise, and costing him around US$28,000 (£19,000) more.

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Tue, 17 May 2016 09:08:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/126009/caledonia-mining-chairman-takes-hit-after-unwitting-share-sale-126009.html
<![CDATA[News - Caledonia Mining associate disposes of bonds ]]> http://www.proactiveinvestors.co.uk/companies/news/125958/caledonia-mining-associate-disposes-of-bonds-125958.html Caledonia Mining Corporation PLC’s (LON:CMCL, TSE:CAL) 49% gold mine subsidiary has sold US$3.2mln worth of  Zimbabwe government bonds.

The bills were issued to the Blanket Mine in 2015 and replaced the Special Tradeable Gold Bonds issued in 2009. The bonds were issued as part consideration for gold sales that were made by Blanket in 2008.

Gross sales proceeds will be subject to Zimbabwean income tax at 25.75%.

Steve Curtis, Caledonia's chief executive, said: "The Bills that were issued to Blanket Mine, and that have now been sold, date back to the commercial environment which prevailed in Zimbabwe in 2008. 

"Blanket Mine has sold all of its production to the government-owned refinery in Zimbabwe since January 2014, and it has always received payment in full and on time.  The sale of the Bills is a continuation of the process to dispose of non-core assets."  

"The additional funds raised from the sale of the Treasury Bills disposes of a legacy asset and we expect it to help fund the continuing development of the Blanket mine," added broker SP Angel.

Meanwhile, chairman Leigh Wilson has agreed to buy back 75,200 shares that were sold in February and early March without his knowledge by his discretionary fund manager.

Wilson did not find out about the share sale, which amounted to all of his holding, until 13 May.

To add insult, the shares were sold in 63.24 US cents per share or around 43p, since when the price has risen to 68p as the gold price has risen and Caledonia's expansion plans have move forward.

 

-- add broker comment, detail --

 

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Mon, 16 May 2016 09:41:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/125958/caledonia-mining-associate-disposes-of-bonds-125958.html
<![CDATA[News - Caledonia Mining says Blanket work on track ]]> http://www.proactiveinvestors.co.uk/companies/news/125844/caledonia-mining-says-blanket-work-on-track-125844.html Tight cost control helped Caledonia Mining Corporation PLC (LON:CMCL) to a better than expected result in its first quarter.

The Zimbabwe-based miner is undertaking a major expansion of the Blanket gold mine and disruption and costs associated with this meant net profits declined to US$543,000 (US$1.26mln).

Gold production increased to 8% to 10,822 ounces while both cash and all-in-sustaining costs declined.

Steve Curtis, chief executive, said the financial and operating results were better than expected due to the better output, good cost control and gold price. 

He added good progress was being made on the development work.

"A huge amount has been achieved at the Central Shaft since work commenced in late 2014; in the first quarter of 2016 the main sinking headgear was assembled; the winders have been commissioned and sinking is expected to re-commence within a few days. 

“Completion of the Central Shaft remains on track for mid-2018 and will re-establish Blanket's position as a low cost operation with excellent prospects to extend the existing mine life.

Production this year is expected to be around approximately 17% higher at 50,000 ounces.  

"The projected increase in production in 2016 is expected to result in improved cash generation due to higher sales volumes and lower costs per ounce of gold as fixed costs are spread over more gold ounces produced.” 

Net cash was US$8.8mln at the end of March and should start to rise in the second half of the year as Blanket resumes dividend payments said Curtis.

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Thu, 12 May 2016 08:26:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/125844/caledonia-mining-says-blanket-work-on-track-125844.html
<![CDATA[News - Caledonia Mining still on track to lift production amid earnings alert ]]> http://www.proactiveinvestors.co.uk/companies/news/124547/caledonia-mining-still-on-track-to-lift-production-amid-earnings-alert-124547.html Caledonia Mining Corporation PLC's (LON:CMCL, TSE:CAL) Blanket gold mine has been in operation for many years now, and has managed to ride out the complexities of the Zimbabwean political situation relatively unscathed.

In large part that’s due to the indigenisation deal that Caledonia struck some years ago with local businessmen, with its own workers, and with other community groups. Under the terms of that deal, Caledonia retains operational control of Blanket and ownership of 49% of it.

The terms of sale of the 51% stake stipulated that the company would be paid back out of cash flow from the mine itself, and on very commercial terms.

Accordingly, as with all the best deals, all parties felt that they came out of it well, and the company’s ability to operate in Zimbabwe has never been seriously in jeopardy.

In recent years the concerns have been more about how to operate Blanket to maximum efficiency.

To that end the company has embarked on a heavy investment programme, the benefits of which are just beginning to show through.

Thus, a new tramming loop has been installed at the 750 metre level, allowing for the more efficient distribution of ore around the underground network of tunnels before it is brought to the surface for processing.

In addition, the company is also working on new shafts to increase the amount of ore it can haul to surface at any one time.

All told, the plan is to boost output in the longer term to more than 80,000 ounces per year by 2021.

In the meantime, the company has become recognised as one of the steadiest dividend payers on London’s junior market, having rewarded shareholders with regular consistency since the beginning of 2012.

From the bosses

“In the middle of March 2016, production from below 750 metres commenced, as planned, via the Number 6 Winze,” says chief executive Steve Curtis.

“Production from below 750 metres is expected to increase progressively in the remainder of 2016 and 2017 and will contribute to the higher targeted production of approximately 50,000 ounces of gold in 2016 and approximately 65,000 ounces of gold in 2017.”

A resource upgrade

Following a drilling programme, 343,000 tonnes were upgraded from the inferred to the higher-confidence indicated resource category in July.

At the same time an additional 1.3mln tonnes of new inventory was added to the inferred resource base.

This latest upgrade combined with the results from a similar exercise last December boosted the reserves and indicated resources that can be used in the life of mine plan by 67% to just under 4.9mln tonnes.

Restates output guidance but warns on profits

On November 2 this year, the group said it expected to meet market expectations for revenue but that it would miss earnings per share (EPS) guidance for full year 2016.

The average grade mined in October was below expectations, but Blanket was still on track to produce 50,000 ounces of gold this year, it said.

The earnings warning was due to various factors, including the strong South African Rand against the US dollar and the increased share price since the start of 2016 meaning share-based expenses are now higher, the group told investors.

Blanket remained on track to increase production from 42,800 ounces of gold a year in 2015 to around 80,000 ounces of gold per annum in 2021, it added.

What the broker said

Panmure Gordon analyst Kieron Hodgson said: "We downgraded Caledonia at the start of September and whilst we see longer term value, short term optimism was too bullish."

He repeated a recommendation for investors to 'hold' the shares but said he was preparing to reappraise his forecasts.

The broker reckons the investment programme to increase production, the low-cost nature of the operation, an unrivalled yield and significant cash resources offer enough incentives for investors to ensure the Caledonia story remains interesting.

"... however, following the latest update we retain our view that taking profits from the exceptional performance in 2016 is preferable," it said.

It said it remained "cautious" on the outcome for full year 2016 given the optimism in recent months.

The broker has a target of 81p on the shares compared to a current price of 120p.

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Thu, 07 Apr 2016 12:56:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/124547/caledonia-mining-still-on-track-to-lift-production-amid-earnings-alert-124547.html
<![CDATA[News - Caledonia Mining Corporation PLC on track for 50,000 ounces of gold this year ]]> http://www.proactiveinvestors.co.uk/companies/news/124522/caledonia-mining-corporation-plc-on-track-for-50000-ounces-of-gold-this-year-124522.html Caledonia Mining Corporation PLC (LON:CMCL) produced 10,822 ounces of gold from its Blanket mine in southern Zimbabwe during the quarter to March 31.

That figure was up by eight per cent on the gold produced in the corresponding period during 2015, but down six per cent on the gold produced in the previous quarter, to the end of December 2015.

The company’s target of 50,000 ounces of production from Blanket for the full year remains in place, with plans for progressive quarterly increases of production to approximately 14,000 ounces per quarter as operations at the new 750 level begin to make a real impact.

Caledonia has been investing heavily in Blanket lately, opening up new levels to the mine and improving the infrastructure underground, both in terms of access and transport.

The increase in production due later in the year comes against that backdrop, and the first quarter dip doesn’t appear to be ringing any alarm bells.

On the contrary, chief executive Steve Curtis notes that first quarter production was actually “higher than planned.”

It was, he said, lower than the previous quarter simply due to the “combined effects of the New Year and Easter holiday periods.”

“We remain on target to achieve our full year production target of 50,000 ounces,” he added.

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Thu, 07 Apr 2016 07:43:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/124522/caledonia-mining-corporation-plc-on-track-for-50000-ounces-of-gold-this-year-124522.html
<![CDATA[Media files - Caledonia Mining PLC chief “very excited” for 2016 ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/4801/caledonia-mining-plc-chief-very-excited-for-2016-4801.html Mon, 21 Mar 2016 14:47:00 +0000 http://www.proactiveinvestors.co.uk/companies/stocktube/4801/caledonia-mining-plc-chief-very-excited-for-2016-4801.html <![CDATA[News - Caledonia Mining PLC hits production record ]]> http://www.proactiveinvestors.co.uk/companies/news/123888/caledonia-mining-plc-hits-production-record-123888.html Mon, 21 Mar 2016 07:42:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/123888/caledonia-mining-plc-hits-production-record-123888.html <![CDATA[News - Caledonia Mining's Jersey switch waved through ]]> http://www.proactiveinvestors.co.uk/companies/news/122722/caledonia-mining-s-jersey-switch-waved-through-122722.html Caledonia Mining (LON:CMCL, TSE:CAL) said the resolution to approve the plan to re-domicile to the Channel Islands was approved at a shareholders meeting on Thursday.

As a result, the company’s new registered office will be PO Box 218, 43/45 La Motte Street, St Helier, Jersey, JE4 8SD.

The company's shares (or depository interests) will continue to be listed and traded on the Toronto Stock Exchange and on AIM and they will continue to be traded on the OTCQX in the USA.

WH IRELAND noted that 96% of the shares represented at the meeting voted in favour of the move, and reiterated its view that the switch to Jersey makes sense as Caledonia’s interests are in Southern Africa with the shareholder base in Southern Africa, UK, Continental Europe as well as North America. 

There will also be cost savings as the company will not be subject to Canadian compliance costs and taxes and future dividends paid to shareholders outside of Canada will not be subject to Canadian withholding tax, the broker noted. 

“In our view this helps streamline the business and tax structure and helps provide a focus on its activities at the expanding Blanket gold mine in Zimbabwe.  The expansion at Blanket continues to raise production from the current ~40koz/a to ~80koz/a gold with perhaps the largest infrastructure project in Zimbabwe at the current time, spending US$70m over six years – all funded,” said analyst Paul Smith. 

“The shaft construction to allow access to the deeper ore in the centre of the ore body is well underway and will provide production infrastructure and access to new resources for years to come. With the increased production beginning to come through from the first completed underground capital projects this year (No 6 Winze resources and the new tramming loop) and an improved gold price outlook Caledonia looks undervalued compared with its peers,” Smith said, as he reiterated his ‘buy’ recommendation and 90p price target. 

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Fri, 19 Feb 2016 07:59:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/122722/caledonia-mining-s-jersey-switch-waved-through-122722.html
<![CDATA[News - Caledonia Mining hedges 15,000oz of gold production ]]> http://www.proactiveinvestors.co.uk/companies/news/122384/caledonia-mining-hedges-15000oz-of-gold-production-122384.html Zimbabwe-based miner Caledonia Mining (LON:CMCL TSX:CAL) has sold forward 15,000 ounces of gold production.

A six month collar and cap arrangement has been set up at a price between US$1,050 per ounce and US$1,080 per ounce. 

Caledonia said the arrangement would give it greater clarity over cashflows until July 2016 when production at its Blanket mine is expected to ramp up.

A six-year investment programme is underway at the mine that will see it invest US$70m up to 2021 to increase annual production to approximately 80,000 ounces of gold.

The miner added the hedge will comprise a series of weekly contracts.

Blanket will continue to sell 100% of its gold to Fidelity Printers and Refiners in Zimbabwe. 

Caledonia added it intends to maintain its existing dividend policy of paying 1.125 US cents per quarter.

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Wed, 10 Feb 2016 13:22:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/122384/caledonia-mining-hedges-15000oz-of-gold-production-122384.html
<![CDATA[News - UPDATE - Caledonia shares rise 10% after bullish production forecast ]]> http://www.proactiveinvestors.co.uk/companies/news/121000/update-caledonia-shares-rise-10-after-bullish-production-forecast-121000.html ---ADDS BROKER COMMENT & SHARE PRICE---

Shares in Caledonia Mining (LON:CMCL,TSE:CAL) rose 10% after it forecast a sharp rise in annual production next year accompanied by a fall in costs.

It is expecting output from the Blanket mine in Zimbabwe to rise 17% to 50,000 ounces of gold metal as it accesses new ore bodies via its No 6 Winze Project in the middle of 2016.

The update came as part of an end-of-year trading update in which Caledonia said it mined 11,518 ounces of the yellow metal in the final quarter of 2015, up almost 11% year on year and taking the total to 42,806 ounces.

Production is expected to be 10,700 in the first quarter, rising to 14,000 ounces of gold by the final three months of the year, reflecting the contribution from No 6 Winze, which provides access to three deeper-lying resource bodies.

With fixed overheads stable, all in sustaining costs should edge down from the current US$969 per ounce.

The shares rose 4.2p to 44.7p in early afternoon trade.

"Fourth-quarter production represents the third successive quarterly increase in gold production from the Blanket mine and lends additional credence to the achievability of the unchanged 2016 production guidance," said the boutique research house SP Angel.

 

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Wed, 06 Jan 2016 07:36:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/121000/update-caledonia-shares-rise-10-after-bullish-production-forecast-121000.html
<![CDATA[News - Aim stocks: Got dividends if you want them ]]> http://www.proactiveinvestors.co.uk/companies/news/120981/aim-stocks-got-dividends-if-you-want-them-120981.html Contrary to popular belief, stocks listed on Aim that pay dividends are not rarer than a clean sheet at Villa Park.

This morning's announcement from Caledonia Mining (LON:CMCL) that it is paying out a dividend for the ninth quarter in a row is not just a reminder that Aim-listed stocks do pay out divis, but also an alert that some of them offer handsome yields.

In Caledonia's case, the yield is around 7.7%, which does not even place it in the top 10 of highest yielding Aim stocks, though given a handful of the junior market's dividend payers appear to be yielding in excess of 25%, the market is clearly not confident all of Aim's dividend payers are likely to keep the cash coming.

That's the crux of the matter, isn't it?

When chasing dividend income, it is wise to do a bit of research and make a call on how likely the company is to maintain its pay-out. In Caledonia's case, it has a 49% interest in the Blanket gold mine in Zimbabwe, which is operating profitably even in these tough times for gold miners, which provides some level of reassurance.

In 2014, the company had earnings per share (EPS) of 12.1 Canadian cents and paid out dividends of six cents, which means it had dividend cover – that's EPS divided by the dividend per share – of just over 2.0, which many sound judges consider a benchmark when trawling for safe income stocks. Higher dividend cover is even better, of course, but the usual caveats apply, namely that even the safest looking dividend can become shaky overnight.

Remember BP, anyone?

Another miner breaking the mould is Central Asia Metals (LON:CAML), a copper producing company operating in Kazakhstan.

In 2014, it paid dividends of 12.5 cents, covered more than four times by earnings, but in 2015 analysts reckon dividend cover will decline dramatically, though the forecast dividend of 8.86p is still covered by projected earnings per share of 9.25p – the analysts apparently prefer to work in pounds, shillings and pence (Are we sure? - Ed.).

So, a little bit on the risky side, but you might reckon the suggested yield of 5.85% make the shares worth a flutter at around 150p a pop.

Caledonia Mining's sector peer, Highland Gold (LON:HGM), also promises a spicy yield, but as well as operating in the desperately out of fashion gold mining sector, it has another strike against it: it operates in Russia, a country viewed by a certain amount of suspicion by modern day lick-spittle capitalist lackeys.

Another red light is it made a loss in 2014, though it still paid out total dividends of 4.5p per share, which for a stock that traded below 40p for the first third of last year is not to be sniffed at.

For 2015, investment analysts predict earnings per share of 8.97p and a pay-out of 3.29p, which is a bit more like it in terms of dividend cover, but given the strikes against the company, you might want to make use of the barge pole in this case.

If former Communist countries are your thing, however, then First Property (LON:FPO) might be a safer bet.

It is a property fund manager with a focus on Central Europe, especially Poland, which as chief executive Ben Habib often observes, was the only European country not to go into recession during the credit crunch in the last decade.

In the year to end-march 2015 it paid out dividends of 1.35p on EPS of 7.21p, giving dividend cover of 5.34, which some might say moves beyond the belt and braces level of caution to include stitching the trousers to the shirt tail as well.

In its interims it upped its dividend by 10% as half-year profits rose to £5.93mln from £5.42mln the year before, while cash at the end of September stood at £14mln.

The full-year dividend is tipped to come in at 1.48p on EPS of 4.90p, which suggests a yield of 2.8%; not utterly sexy but better than you'll get down the bank on most instant access accounts, and the yield would have been a lot higher had it not been for the fact the shares have risen 63% over the last year …

Looking for something a little bit racier?

Brady (LON:BRY), the supplier of trading and risk management solutions for metals, recycling, energy and soft commodities, is projected to pay a dividend of 1.98p for the whole of 2015 (though you are too late for the interim dividend of 1.85p), and is currently priced at 54p, which is a projected dividend yield of 3.67%.

The company has a robust balance sheet, a healthy cash position, no debt and a progressive dividend policy.

The dividend yield is abnormally high at present because of a downbeat trading upbeat at the end of November that depressed the share price, but the shares are picking up, helped by news of three new contract wins just before Christmas.

The above are just some suggestions for further investigation of Aim-listed companies that lay to rest the myth that London's junior market is chock-full of “blue sky” companies that are years away from making a profit.

For sure, many of the dividend payers are only paying out cash to show willing and flag up the fact they are making a profit, and it might help Aim's reputation if the 800lb gorilla of the market, ASOS (LON:ASC) – market cap: £2.78bn; dividend pay-out: beggar-all – returned some cash to shareholders, but there are plenty of solid Aim stocks, such as Utilitywise (LON:UTW), that are offering income as well as rapid profits growth.  

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Tue, 05 Jan 2016 12:41:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/120981/aim-stocks-got-dividends-if-you-want-them-120981.html
<![CDATA[News - Caledonia Mining dividend a reminder it is one of the few income stocks in the sector ]]> http://www.proactiveinvestors.co.uk/companies/news/120961/caledonia-mining-dividend-a-reminder-it-is-one-of-the-few-income-stocks-in-the-sector-120961.html There are few stocks on the junior bourse that yield more than 8% - let alone one in the gold mining sector.

Today’s dividend declaration from Caledonia Mining (LON:CMCL, CVE:CAL, OTCQX:CALVF) is a reminder there are still a few diggers out there willing and able to reward investors.

The company, which owns the Blanket Mine in Zimbabwe, is paying 1.125 US cents a share for the quarter just gone – or the equivalent of 4.5 cents on an annualised basis.

The firm is sitting on around US$16.1mln generated from an operation that has an-all-in cost of US$696 per ounce.

In the dividend release, Caledonia also updated on its plans to shift its domicile to Jersey from Canada. This ought to provide a boon for investors who won’t then have to pay Canadian withholding tax on their dividends.

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Tue, 05 Jan 2016 07:53:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/120961/caledonia-mining-dividend-a-reminder-it-is-one-of-the-few-income-stocks-in-the-sector-120961.html