Proactiveinvestors United Kingdom Caledonia Mining Corporation https://www.proactiveinvestors.co.uk Proactiveinvestors United Kingdom Caledonia Mining Corporation RSS feed en Mon, 27 May 2019 05:59:27 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[Media files - Caledonia Mining reports strong cash generation as it mulls options around electricity supply ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/13334/caledonia-mining-reports-strong-cash-generation-as-it-mulls-options-around-electricity-supply-13334.html Tue, 14 May 2019 12:48:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/13334/caledonia-mining-reports-strong-cash-generation-as-it-mulls-options-around-electricity-supply-13334.html <![CDATA[News - Gold production from Caledonia’s Blanket mine dips, as per plan ]]> https://www.proactiveinvestors.co.uk/companies/news/220188/gold-production-from-caledonias-blanket-mine-dips-as-per-plan-220188.html Caledonia Mining Corporation Ltd (LON:CMCL) produced 11,948 ounces in the first quarter of 2019, approximately eight per cent below the first quarter of 2018. Production was adversely affected by lower grade, although this was anticipated as part of the mine plan.

Operating profit before tax rang in at US$12.3mln, 105 per cent higher than in the first quarter of 2018, although this increase was entirely due to exceptional gains of US$3.3mln on foreign exchange, following the devaluation of the domestic Zimbabwean currency, and a profit on the sale of a subsidiary of US$5.4mln.

WATCH: Caledonia Mining reports strong cash generation as it mulls options around electricity supply

Attributable profit after tax was also substantially higher than the comparable quarter in 2018 at US$9.3mln again due to exceptional items which outweighed lower gross profit.

Operating cash flows for the quarter were US$6.3mln, down from the US$7mln delivered in the first quarter of 2018.

Caledonia’s balance sheet remains strong, with net cash of US$9.7mln as at 31 March 2019. 

 

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Tue, 14 May 2019 07:53:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/220188/gold-production-from-caledonias-blanket-mine-dips-as-per-plan-220188.html
<![CDATA[RNS press release - Results for the quarter ended 31 March 2019 ]]> https://www.proactiveinvestors.co.uk/companies/rns/156/LSE20190514070006_14072418/ Tue, 14 May 2019 07:00:06 +0100 https://www.proactiveinvestors.co.uk/companies/rns/156/LSE20190514070006_14072418/ <![CDATA[News - Caledonia Mining notified of gold price rise by Zimbabwe refinery ]]> https://www.proactiveinvestors.co.uk/companies/news/220122/caledonia-mining-notified-of-gold-price-rise-by-zimbabwe-refinery-220122.html Caledonia Mining Corporation PLC (LON:CMCL) has seen a hike in the price of gold produced from its Blanket mine in Zimbabwe.

State refinery Fidelity has raised the price it pays to US$44,000 per kilogram or US$1,368.55/ounce, a premium of approximately $86/ounce (6.7%) to the spot price in London.

The aim is to incentivise gold production in Zimbabwe, said Caledonia.

Blanket is obliged to sell its gold production to Fidelity.

Caledonia added it is unclear how long the gold support price will remain in place, how, when and by what rationale it may be adjusted in the future and whether the additional income associated with the gold support price will be subject to Zimbabwean income tax or royalty deductions.

The miner has asked for clarity on these issues.

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Mon, 13 May 2019 09:16:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/220122/caledonia-mining-notified-of-gold-price-rise-by-zimbabwe-refinery-220122.html
<![CDATA[RNS press release - Gold support price for Zimbabwean gold miners ]]> https://www.proactiveinvestors.co.uk/companies/rns/156/LSE20190513080551_14071134/ Mon, 13 May 2019 08:05:51 +0100 https://www.proactiveinvestors.co.uk/companies/rns/156/LSE20190513080551_14071134/ <![CDATA[RNS press release - Results of Annual General Meeting ]]> https://www.proactiveinvestors.co.uk/companies/rns/156/LSE20190508093738_14066369/ Wed, 08 May 2019 09:37:38 +0100 https://www.proactiveinvestors.co.uk/companies/rns/156/LSE20190508093738_14066369/ <![CDATA[Media files - Caledonia Mining's Learmonth upbeat as they near completion of central shaft sinking ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/13020/caledonia-mining-s-learmonth-upbeat-as-they-near-completion-of-central-shaft-sinking-13020.html Tue, 16 Apr 2019 13:14:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/13020/caledonia-mining-s-learmonth-upbeat-as-they-near-completion-of-central-shaft-sinking-13020.html <![CDATA[News - Quarterly production results show Caledonia Mining still on track to hit full-year target ]]> https://www.proactiveinvestors.co.uk/companies/news/218649/quarterly-production-results-show-caledonia-mining-still-on-track-to-hit-full-year-target-218649.html Caledonia Mining Corporation PLC (LON:CMCL) (TSE:CAL) produced 11,948 ounces from the Blanket mine in Zimbabwe during the quarter ended 31 March.

The company maintains its 2019 full-year production guidance of between 53,000 ounces and 56,000 ounces, and is still on track with progress towards its target of 80,000 ounces by 2022.

WATCH: Caledonia Mining delivers 'robust performance' with good progress on expansion

"Production in the first quarter of 2019 was slightly below our target and below the comparable quarter in 2018 (Q1 2018: 12,924), albeit at a level which allows us to maintain our 2019 production guidance of 53,000 to 56,000 ounces for the full year,” said chief executive Steve Curtis.

“Continued difficulties with unstable electricity supply and grade dilution which we experienced in 2018 had an adverse effect on production, but improved drilling and blasting practices have been put in place in pursuit of improved grade control and I am pleased to say that efforts to minimize dilution are proving successful.

"Our technical team has worked tirelessly to mitigate the effects of electricity supply interruptions and we continue to work closely with the Zimbabwean electricity supply authorities to address these challenges as well as investing internally to improve our resilience to this issue."

And for the longer term, Curtis remains upbeat.  

"The sinking of the central shaft continues according to plan,” he said.

“We are now only months away from the completion of the shaft sinking phase of the project and are set to commence shaft equipping from mid-2019. We look forward to commencing production from the central shaft from mid-2020 which is expected to deliver the company's growth plan to achieve 75,000 ounces in 2021 and 80,000 ounces by 2022."

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Tue, 16 Apr 2019 07:46:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/218649/quarterly-production-results-show-caledonia-mining-still-on-track-to-hit-full-year-target-218649.html
<![CDATA[RNS press release - Q1 2019 Production Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/156/LSE20190416070002_14042007/ Tue, 16 Apr 2019 07:00:02 +0100 https://www.proactiveinvestors.co.uk/companies/rns/156/LSE20190416070002_14042007/ <![CDATA[RNS press release - Notice of Availability of AGM Materials ]]> https://www.proactiveinvestors.co.uk/companies/rns/156/LSE20190402070021_14024592/ Tue, 02 Apr 2019 07:00:21 +0100 https://www.proactiveinvestors.co.uk/companies/rns/156/LSE20190402070021_14024592/ <![CDATA[RNS press release - Issue of Securities and Long Term Incentive Award ]]> https://www.proactiveinvestors.co.uk/companies/rns/156/LSE20190325070013_14013432/ Mon, 25 Mar 2019 07:00:13 +0000 https://www.proactiveinvestors.co.uk/companies/rns/156/LSE20190325070013_14013432/ <![CDATA[Media files - Caledonia Mining delivers 'robust performance' with good progress on expansion ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/12662/caledonia-mining-delivers--robust-performance--with-good-progress-on-expansion-12662.html Wed, 20 Mar 2019 15:51:00 +0000 https://www.proactiveinvestors.co.uk/companies/stocktube/12662/caledonia-mining-delivers--robust-performance--with-good-progress-on-expansion-12662.html <![CDATA[News - Caledonia Mining books US$21.5mln in gross profits for 2018 as expansion work continues ]]> https://www.proactiveinvestors.co.uk/companies/news/216810/caledonia-mining-books-us215mln-in-gross-profits-for-2018-as-expansion-work-continues-216810.html Caledonia Mining Corporation PLC (LON:CMCL)(TSE:CAL) produced 54,511 ounces of gold from its Blanket mine in Zimbabwe during the 12 months to December 2018.

That was down slightly on the 56,133 ounces produced in 2017, as grades were somewhat weaker.

READ: “Genuine attempt to open up Zimbabwe for business”: Caledonia Mining takes near-term hit against backdrop of improving outlook

The same dynamic caused mine costs to rise from US$633 per ounce to US$690.

But all-in sustaining costs were significantly better at US$802 per ounce against US$847 in 2017 as the benefits of the now-discontinued Export Credit Incentive kicked in.

The effect of all that was a reduction in gross profits to US$21.5mln from US$26mln in 2017.

Net cash at year end was just over US$11mln, as spending continued on a mine expansion programme designed to take yearly production over the 80,000 ounces mark.

"Blanket delivered a robust performance, despite the well-known challenges of operating in Zimbabwe,” said chief executive Steve Curtis.

“We made good progress on the Central Shaft, which I expect to be operational in approximately 15 months and we continued our track record of growing the resource base at Blanket. Production for the Year was lower than in 2017 primarily due to an unplanned lower recovered grade as a result of added dilution due to the adoption of long-hole stoping in certain areas for safety reasons.”

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Wed, 20 Mar 2019 07:37:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/216810/caledonia-mining-books-us215mln-in-gross-profits-for-2018-as-expansion-work-continues-216810.html
<![CDATA[RNS press release - Results for the Fourth Quarter and Year end ]]> https://www.proactiveinvestors.co.uk/companies/rns/156/LSE20190320070004_14008248/ Wed, 20 Mar 2019 07:00:04 +0000 https://www.proactiveinvestors.co.uk/companies/rns/156/LSE20190320070004_14008248/ <![CDATA[News - “Genuine attempt to open up Zimbabwe for business”: Caledonia Mining takes near-term hit against backdrop of improving outlook ]]> https://www.proactiveinvestors.co.uk/companies/news/216465/genuine-attempt-to-open-up-zimbabwe-for-business-caledonia-mining-takes-near-term-hit-against-backdrop-of-improving-outlook-216465.html Shares in Caledonia Mining Corporation PLC (LON:CMCL) took a bit of a dive at the end of February after the Zimbabwe government announced that it was ending its export credit incentive scheme.

Under the terms of this scheme, gold producers were able to secure a premium to the spot price by selling directly to a Zimbabwean government agency. The idea was that for a country starved of foreign exchange the government could get its hands on very valuable US dollars by selling the gold itself. In return, the gold companies booked their premiums, and everyone was happy.

Or so it was supposed to go.

It seems though that what ended up happening was that entrepreneurial criminals were smuggling gold or gold concentrate into Zimbabwe from elsewhere and then securing the premium by selling to foreign-produced metal to the government. The paradoxical effect was a net outflow rather than a net inflow of foreign exchange.

New Zimbabwean President Emerson Mnangagwa has promised to revitalise Zimbabwe's shattered economy, and addressing this issue was a high priority.

The negative effects on legitimate producers like Caledonia are seen by the government as a necessary cost to be borne on the road to economic normalisation.

That doesn’t help Caledonia shareholders very much, given that the company estimated that the hit to earnings resulting from this change would amount to around US$5.4mln or between US$0.40 and US$0.46 per share.

But beyond this immediate financial setback, there is actually some significant good news to tell.

The first item is that Zimbabwe’s economic liberalisation is proceeding with gusto. It’s not always been an easy process, to be sure, as the widespread unrest related to increased fuel prices bears witness to.

But Mnangagwa has set out his stall, particularly on inflation, and there is widespread optimism in financial circles that the Reserve Bank of Zimbabwe is going to move towards a transparent currency market.

This is seen as key because real-terms inflation remains very high, but has until very recently been officially hidden behind a government-backed currency that has been kept at artificial levels.

Moves to address this issue with the creation of a newer freer-floating currency exchangeable on foreign markets have gone some way towards mitigating the problem, but the feeling is there is still some reserve bank intervention going on in the background, perhaps to allow the new currency a slower and more gentle move towards the true market rate.

This currency change is also related to the demise of the export credit incentive scheme, since the government has now created, in theory, its own currency capable of securing foreign exchange reserves, and no longer needs to rely on gold sales to secure US dollars.

The resolution of the currency complexities in Zimbabwe would be more than welcome, especially to workers at the operations like Caledonia’s Blanket mine. By law Caledonia has had to pay its workers at the official rate, but with the twin currencies trading well off their official parity on the black market, that meant real-terms pay was cut to 14 cents in the dollar.

The disparity is no longer that extreme, but there is still some way to go.

Still, Caledonia’s Mark Learmonth expresses cautious optimism that progress will be made. The company has met with Mr Mnangagwa and with the governor of the reserve bank and sees, he says, “a genuine attempt by the Zimbabwean government to liberalise the economy.”

He points out that for the last four months the government has been running a surplus, which is virtually unheard of in the recent economic history of Zimbabwe.

“We are comfortable that there is a genuine attempt to open up the country for business,” says Learmonth.

“We’re very clear on that.”

For Caledonia the upside could be significant. The hit from the cancellation of the export credit incentive will be a one-time event, but longer-term, the environment for deal-making is likely to improve.

Markets will become more transparent, and Caledonia’s own arrangements for selling its gold will no longer be subject to arrangements of byzantine complexity designed to gerrymander foreign exchange into government coffers.

Plans for expansion at Blanket remain very much on track, and although grades have recently slipped, longer-term the 80,000 ounce target is likely to deliver a major boost to earnings. That in turn will allow Caledonia the flexibility to go after other assets with significant potential.

Indeed, the company has already started looking, although at this stage Learmonth is keen to emphasise that no major financial outlay is contemplated.

Instead the company will stick to its knitting, keeping its fingers crossed that the inflation problem will be brought under control, and freer in any case to sell its gold independently and out into the international markets.

 

 

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Thu, 14 Mar 2019 10:23:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/216465/genuine-attempt-to-open-up-zimbabwe-for-business-caledonia-mining-takes-near-term-hit-against-backdrop-of-improving-outlook-216465.html
<![CDATA[News - Caledonia Mining predicts hit to 2019 earnings from monetary policy change in Zimbabwe ]]> https://www.proactiveinvestors.co.uk/companies/news/215423/caledonia-mining-predicts-hit-to-2019-earnings-from-monetary-policy-change-in-zimbabwe-215423.html Caledonia Mining Corporation PLC (LON:CMCL) expects a US$5.4mln hit to 2019 earnings after the Zimbabwean central bank withdrew an export credit incentive (ECI) programme for gold producers.

READ: Caledonia Mining boosts quarterly gold production, looks ahead to 80,000 ounces in 2021

Under the ECI programme, Zimbabwean gold producers received a premium to the international gold price. The premium was initially set at 2.5% of gold revenues before rising to 10%.

The withdrawal of the programme is part of the central bank's decision to introduce a new currency, known as RTGS dollars, that can be used to make payments outside Zimbabwe.

The currency is made up of bond notes, coins and all electronic money and is aimed at reducing inflationary pressures in the country. 

"At this stage it is unclear whether this policy will address the increasing inflationary pressure in Zimbabwe by creating a transparent and efficient market exchange rate between RTGS dollars and dollars held in FCAs," Caledonia said. 

Caledonia said the Reserve Bank of Zimbabwe’s decision to remove the ECI programme would reduce earnings by 40 to 46 US cents per share.

The estimated impact on earnings assumes a gold price of US$1,300 for the rest of the year, the Blanket mine achieving the production guidance of 53,000 to 56,000 ounces of gold and no changes to operating costs.

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Wed, 27 Feb 2019 13:23:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/215423/caledonia-mining-predicts-hit-to-2019-earnings-from-monetary-policy-change-in-zimbabwe-215423.html
<![CDATA[RNS press release - Revised Zimbabwe monetary policy affects earnings ]]> https://www.proactiveinvestors.co.uk/companies/rns/156/LSE20190227124600_13983921/ Wed, 27 Feb 2019 12:46:00 +0000 https://www.proactiveinvestors.co.uk/companies/rns/156/LSE20190227124600_13983921/ <![CDATA[Media files - Caledonia Mining enjoys consistent production performance at Blanket mine ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/11834/caledonia-mining-enjoys-consistent-production-performance-at-blanket-mine-11834.html Mon, 14 Jan 2019 15:31:00 +0000 https://www.proactiveinvestors.co.uk/companies/stocktube/11834/caledonia-mining-enjoys-consistent-production-performance-at-blanket-mine-11834.html <![CDATA[News - Caledonia Mining boosts quarterly gold production, looks ahead to 80,000 ounces in 2021 ]]> https://www.proactiveinvestors.co.uk/companies/news/212469/caledonia-mining-boosts-quarterly-gold-production-looks-ahead-to-80000-ounces-in-2021-212469.html Caledonia Mining Corporation Plc (LON:CMCL) produced 14,952 ounces of gold during the quarter ended December 31, 2018, a seven per cent increase over the previous quarter.

Total gold production for the year to 31 December 2018 was approximately 54,512 ounces.

WATCH: Caledonia Mining enjoys consistent production performance at Blanket mine

Gold production for 2019 is expected to be between 53,000 and 56,000 ounces.

Looking further out, Caledonia remains on track to achieve production of approximately 80,000 ounces of gold per annum from 2021 following completion of the Central Shaft.

The Central Shaft is currently at a depth of 1,150 meters and will be sunk to a depth of 1,204 meters. It is anticipated that shaft sinking will be completed towards the middle of 2019 after which the shaft will be equipped and commissioned.

This increase in operational capacity has been matched by an increase in the resource base, as the mine life now stands at 14 years, significantly higher than the estimated life of six years made in 2014.

WATCH: Caledonia Mining definitely interested in more assets in Zimbabwe though no bids yet

"Completion of the Central Shaft is the key to Blanket achieving its planned production of approximately 80,000 ounces of gold per annum from 2021 onwards,” said chief executive Steve Curtis.

“I expect that sinking work at Central Shaft will be completed by mid-year after which we will start to equip the shaft. "This part of the Central Shaft project is relatively capital intensive. In light of our significant capital expenditure commitments, we believe it is prudent to take advantage of the recent strengthening of the gold price and we have therefore secured a minimum received gold price of $1,250 per ounce for the 5 months to June 2019 whilst maintaining full upside exposure to the gold price through a cost-effective option structure."



 

 

 

 

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Mon, 14 Jan 2019 07:51:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/212469/caledonia-mining-boosts-quarterly-gold-production-looks-ahead-to-80000-ounces-in-2021-212469.html
<![CDATA[RNS press release - Issue of Securities ]]> https://www.proactiveinvestors.co.uk/companies/rns/156/LSE20190114070006_13932766/ Mon, 14 Jan 2019 07:00:06 +0000 https://www.proactiveinvestors.co.uk/companies/rns/156/LSE20190114070006_13932766/ <![CDATA[RNS press release - 2018 Production Update & 2019 Production Guidance ]]> https://www.proactiveinvestors.co.uk/companies/rns/156/LSE20190114070004_13932736/ Mon, 14 Jan 2019 07:00:04 +0000 https://www.proactiveinvestors.co.uk/companies/rns/156/LSE20190114070004_13932736/ <![CDATA[RNS press release - Caledonia declares quarterly dividend ]]> https://www.proactiveinvestors.co.uk/companies/rns/156/LSE20190102070006_13920073/ Wed, 02 Jan 2019 07:00:06 +0000 https://www.proactiveinvestors.co.uk/companies/rns/156/LSE20190102070006_13920073/ <![CDATA[News - Caledonia Mining moving steadily towards 80,000 ounce production target by 2021 ]]> https://www.proactiveinvestors.co.uk/companies/news/209678/caledonia-mining-moving-steadily-towards-80000-ounce-production-target-by-2021-209678.html Recent results from the Blanket mine show Caledonia Mining PLC (LON:CMCL)(TSE:CAL) on track to meet revised production guidance for the full year of between 54,000 and 56,000 ounces of gold.

During the three months to 30 September 2018, Blanket produced 13,978 ounces of gold at an all-in sustaining cost of US$734 per ounce, and sold the same ounces for an average realised price of US$1,190.

That in turn lead to a net profit of US$2.2mln, down somewhat on the corresponding quarter from 2017, but compounding into the nine month figures to put Caledonia nearly 30% ahead of where it was last year, with profits at US$7.9mln.

So a mixed picture, or as chief financial officer Mark Learmonth puts it: “the results are fine.”

“We narrowed our guidance in October,” he says. “But since then production has been extremely strong. What was pleasing is that we’re now overcoming logistical issues and we’re able to move more tonnes.”

But he adds a rider which points to the real potential ahead.

“What’s happening at Blanket isn’t about this year’s production numbers, or even the next,” he says.

“It’s about increasing production to 80,000 ounces by 2021.”

This production increase has been some years in the making, but is now nearing fruition under the capable supervision of Caledonia’s chief executive Steve Curtis and chief operating officer Dana Roets, an experienced mine builder.

“Stepping up from 55,000 ounces will have a significant effect on cash generation, and costs come down because the fixed costs are spread out,” explains Learmonth.

The capex spend will drop too, once the build is complete, allowing for the possibility that Caledonia’s already generous dividend may increase further.

All told, with the gold price hovering steady above the US$1,200 mark, the outlook looks favourable.

To be sure, there is some uncertainty surrounding the situation in Zimbabwe. A shortage of US dollars has been an issue for some companies, but Caledonia, with its close ties to the government’s gold buying agency, has never encountered any issues.

And in fact, this arrangement has its benefits.

“If we sell a product with 85% gold content to the government and deliver it on, say, a Monday,” says Learmonth.

“We reference the Tuesday a.m. gold fix in London for the price, and we receive payment on Wednesday. The benefit is that we get paid within a few days of delivery – it’s done wonders for our working capital.”

Some aspects of working in Zimbabwe have been challenging over the years, to be sure, but the new regime of Emerson Mnangagwa appears to be doing its utmost to create a favourable business environment.

Already, Caledonia has struck a deal to take its ownership of the Blanket mine up to 64%, buying out former empowerment partners along the way.

And more than that, there could be opportunities to do deals.

“We’re happy to look at gold assets,” says Learmonth. “There are good assets there.”

But he cautions about the expectations vendors have about valuation, which he calls stratospherically high.

For now, the emphasis is on the ongoing development of the central shaft, and on stepping up exploration. The company has consistently replaced reserves and resources and has extended the life of mine out to 2034.

On the strength of that, and the company’s long track record of successfully operating in Zimbabwe, the future looks bright.

 

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Thu, 22 Nov 2018 12:41:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/209678/caledonia-mining-moving-steadily-towards-80000-ounce-production-target-by-2021-209678.html
<![CDATA[Media files - Caledonia Mining definitely interested in more assets in Zimbabwe though no bids yet ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/11209/caledonia-mining-definitely-interested-in-more-assets-in-zimbabwe-though-no-bids-yet-11209.html Thu, 15 Nov 2018 16:16:00 +0000 https://www.proactiveinvestors.co.uk/companies/stocktube/11209/caledonia-mining-definitely-interested-in-more-assets-in-zimbabwe-though-no-bids-yet-11209.html <![CDATA[News - Caledonia Mining shows quarter-on-quarter improvement ]]> https://www.proactiveinvestors.co.uk/companies/news/209165/caledonia-mining-shows-quarter-on-quarter-improvement-209165.html Caledonia Mining Corporation Plc (LON:CMCL) told investors that gold production amounted to 13,978 ounces, down 2.9% versus the comparative period in 2017. Output for the nine-month period measured 39,558 ounces.

"The third quarter of 2018 was an improvement on the second quarter of the year:  we addressed some of the operating challenges which the business experienced in previous quarters; cost control remained good, and Caledonia stabilised its cash position and working capital movements,” said Steve Curtis, Caledonia chief executive.

"Production of 13,978 ounces was 3 per cent down on the third quarter of 2017 and marginally below our expectations.”

READ: Caledonia Mining 'putting itself forward' as Zimbabwe sells gold assets

Caledonia has decided to “tighten and slightly reduce” its expectations for the full year, to 54,000 to 56,000 ounces, from 55,000 to 59,000 ounces.

Curtis added: “Grade for the quarter remained below expectations at 3.12g/t as we continued to experience some mining dilution due to the introduction of long-hole stopping in the narrower reef width areas due to safety considerations.

“Corrective measures have been taken to improve the accuracy of drilling which is expected to result in improved mined grades in the remainder of the last quarter of 2018 and thereafter.

“We remain confident that the underlying geological model for Blanket and the grade of the resource remains sound.”

Caledonia described the group’s cost performance as satisfactory considering the below-expected grade.

“On-mine and all-in sustaining costs were well-contained: on-mine costs of $670 per ounce for the quarter were 5 per cent higher than the comparable quarter due to elevated equipment maintenance and consumables costs.

“All-in sustaining costs of $754 per ounce were 2.5 per cent below the comparable quarter as we continue to benefit from a higher ECI.”

The company noted that it remains confident in the longer-term cost guidance of US$700 to US$800 per ounce, as it progresses to grow production to 80,000 ounces per year by 2021.

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Wed, 14 Nov 2018 08:36:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/209165/caledonia-mining-shows-quarter-on-quarter-improvement-209165.html
<![CDATA[RNS press release - Results for the Quarter ended 30 September 2018 ]]> https://www.proactiveinvestors.co.uk/companies/rns/156/LSE20181114070001_13865809/ Wed, 14 Nov 2018 07:00:01 +0000 https://www.proactiveinvestors.co.uk/companies/rns/156/LSE20181114070001_13865809/ <![CDATA[Media files - Caledonia Mining 'putting itself forward' as Zimbabwe sells gold assets ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/11119/caledonia-mining-putting-itself-forward-as-zimbabwe-sells-gold-assets-11119.html Tue, 06 Nov 2018 14:47:00 +0000 https://www.proactiveinvestors.co.uk/companies/stocktube/11119/caledonia-mining-putting-itself-forward-as-zimbabwe-sells-gold-assets-11119.html <![CDATA[News - Caledonia agrees legally binding deal to acquire a further 15% of the Blanket mine ]]> https://www.proactiveinvestors.co.uk/companies/news/208581/caledonia-agrees-legally-binding-deal-to-acquire-a-further-15-of-the-blanket-mine-208581.html Caledonia Mining Corporation PLC (LON:CMCL) is to move ahead with the acquisition of a further 15% of the Blanket gold mine in Zimbabwe from local investment group Femiro.

The terms of the deal were first set out in a memorandum of understanding in August.

READ: Caledonia Mining declares quarterly dividend, remains on track for full year payout of US$0.275

In total the transaction is worth US$16.667mln, and includes the cancellation of an US$11.67mln loan and the issue of just over 725,000 shares at a price of US$7.15, the prevailing price at the time the MoU was agreed.

On completion of the transaction, Caledonia will have a 64% shareholding in Blanket and Fremiro will hold 6.42% of Caledonia's diluted equity.

Separately, Caledonia has moved to reassure investors that the ongoing shortage of foreign exchange in Zimbabwe has not impacted operations at Blanket. The company said it is in touch with the highest levels of government in Zimbabwe, and that the matter is receiving urgent attention.

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Tue, 06 Nov 2018 07:44:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/208581/caledonia-agrees-legally-binding-deal-to-acquire-a-further-15-of-the-blanket-mine-208581.html
<![CDATA[RNS press release - Update on the Monetary Environment in Zimbabwe ]]> https://www.proactiveinvestors.co.uk/companies/rns/156/LSE20181106070005_13855893/ Tue, 06 Nov 2018 07:00:05 +0000 https://www.proactiveinvestors.co.uk/companies/rns/156/LSE20181106070005_13855893/ <![CDATA[RNS press release - Q3 2018 Production update ]]> https://www.proactiveinvestors.co.uk/companies/rns/156/LSE20181011070004_13824241/ Thu, 11 Oct 2018 07:00:04 +0100 https://www.proactiveinvestors.co.uk/companies/rns/156/LSE20181011070004_13824241/ <![CDATA[News - Caledonia Mining declares quarterly dividend, remains on track for full year payout of US$0.275 ]]> https://www.proactiveinvestors.co.uk/companies/news/206156/caledonia-mining-declares-quarterly-dividend-remains-on-track-for-full-year-payout-of-us0275-206156.html Caledonia Mining Corporation PLC (LON:CMCL) has declared a quarterly dividend of US$0.06875 per share.

The shares will go ex-dividend on 11 October, and the record date is 12 October.

WATCH: Caledonia Mining to increase stake in Blanket mine to 64%

Caledonia adopted a quarterly dividend policy in 2014. It’s expected that the current dividend of US$0.275 per year, paid in equal quarterly instalments, will be maintained. 

Caledonia's primary asset is a 49% interest in the Blanket gold mine in Zimbabwe, although this stake is likely to rise to 64% following a memorandum of understanding signed in August.

On current plans, production from Blanket will increase to 80,000 ounces per year by 2021. Forecast production for 2018 is between 55,000 and 59,000 ounces of gold.

As at 30 June 2018, Caledonia had cash of approximately US$5.3mln. 

 

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Tue, 02 Oct 2018 07:28:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/206156/caledonia-mining-declares-quarterly-dividend-remains-on-track-for-full-year-payout-of-us0275-206156.html
<![CDATA[RNS press release - Caledonia declares quarterly dividend ]]> https://www.proactiveinvestors.co.uk/companies/rns/156/LSE20181002070011_13812218/ Tue, 02 Oct 2018 07:00:11 +0100 https://www.proactiveinvestors.co.uk/companies/rns/156/LSE20181002070011_13812218/ <![CDATA[News - Caledonia Mining adds 13% to mining resource at Blanket Mine in Zimbabwe ]]> https://www.proactiveinvestors.co.uk/companies/news/205308/caledonia-mining-adds-13-to-mining-resource-at-blanket-mine-in-zimbabwe-205308.html Caledonia Mining Corporation PLC (LON:CMCL) has added 13% to the most certain category resource at the Blanket gold mine in Zimbabwe.

Measured and Indicated ounces are now 805,000oz, up from 714,000oz in August 2017, from 6.74mln tonnes at a grade of 3.72 g/t.

WATCH: Caledonia Mining to increase stake in Blanket mine to 64%

Inferred resources, the least certain category, rose by 9% to 963,000 ounces.

Average grades on the resource dropped compared to the previous estimate but remain above the current mill feed grade of 3.3g/t, said Caledonia. The grades trend higher as the mining gets deeper.

Total proven reserves and indicated resources are 4.98mln tonnes, a 10% increase.

Steve Curtis, chief executive, said: “We have increased total resources at Blanket by 86% since 2011 in addition to mining over 300,000 ounces over this period.

“Whilst there is a small downward revision in grade, the grade of the ore body remains consistent with our expectations and continues to be well above the current mined grade at Blanket of 3.3g/t.

“The inferred resource in particular at a grade of 4.5g/t and the substantial increase in inferred resources at depth gives us confidence in the longer-term potential of the mine.“

Caledonia owns 49% of Blanket.

In a note to clients, analysts at ‘house’ broker Shore Capital pointed out that ounces up and grade slightly down, but still OK, bodes well for longer-term life at Blanket.

In early afternoon trading, Caledonia Mining shares were 3.3% higher at 545p.

 -- Adds analyst comment, share price --

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Thu, 20 Sep 2018 08:33:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/205308/caledonia-mining-adds-13-to-mining-resource-at-blanket-mine-in-zimbabwe-205308.html
<![CDATA[RNS press release - Resource Upgrade at the Blanket Mine, Zimbabwe ]]> https://www.proactiveinvestors.co.uk/companies/rns/156/LSE20180920070007_13797504/ Thu, 20 Sep 2018 07:00:07 +0100 https://www.proactiveinvestors.co.uk/companies/rns/156/LSE20180920070007_13797504/ <![CDATA[Media files - Caledonia Mining to increase stake in Blanket mine to 64% ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/10253/caledonia-mining-to-increase-stake-in-blanket-mine-to-64-10253.html Tue, 28 Aug 2018 08:44:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/10253/caledonia-mining-to-increase-stake-in-blanket-mine-to-64-10253.html <![CDATA[News - Caledonia Mining signs MoU to buy 15% stake in Blanket mine for US$16.6mln ]]> https://www.proactiveinvestors.co.uk/companies/news/203557/caledonia-mining-signs-mou-to-buy-15-stake-in-blanket-mine-for-us166mln-203557.html Caledonia Mining Corp PLC (LON:CMCL) has entered into a memorandum of understanding with Fremiro Investments (Private) Limited to buy a 15% stake in the Blanket mine in Zimbabwe for US$16.6mln.

Following the completion of the acquisition, Caledonia’s ownership in the mine would increase to 64%.

The deal comes after the Zimbabwean government amended its Indigenisation and Economic Empowerment Act in March to pave the way for more foreign investment in mining.

The indigenisation law gave Zimbabweans the right to take over and control many foreign-owned companies operating in the nation.

To comply with the law, Caledonia sold 41% of Blanket Mine to indigenous Zimbabwean shareholders in 2012, including a 15% stake to Fremiro, 16% to the National Indigenisation and Economic Empowerment Fund and 10% to Blanket Employee Trust Services Limited.

Caledonia now intends to buy back the stake it had sold to Fremiro after the Zimbabwean government removed the indigenisation requirement for gold mining businesses.

The acquisition is subject to regulatory approvals in Zimbabwe and a formal agreement with Fremiro.

"Blanket is well-advanced on implementing the investment programme which commenced in early 2015 and is expected to result in Blanket achieving an annual production rate of at least 80,000 ounces per annum by 2021, at a low cash cost,” said chief executive Steve Curtis.

“Caledonia is evaluating further investment opportunities in Zimbabwe. Such new opportunities, if they result in one or more transactions, are likely to be held directly by Caledonia and/or its subsidiaries rather than by Blanket.”

READ: Caledonia Mining grows gold output marginally in challenging quarter

Caledonia said it remains on track to achieve its production target of 80,000 ounces by 2021 at the Blanket mine. The miner also expects its cash position to improve as it reduces its operating costs and plans to maintain a quarterly dividend of 6.875 cents. 

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Fri, 24 Aug 2018 12:07:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/203557/caledonia-mining-signs-mou-to-buy-15-stake-in-blanket-mine-for-us166mln-203557.html
<![CDATA[RNS press release - Caledonia increases shareholding in Blanket Mine ]]> https://www.proactiveinvestors.co.uk/companies/rns/156/LSE20180824110507_13767744/ Fri, 24 Aug 2018 11:05:07 +0100 https://www.proactiveinvestors.co.uk/companies/rns/156/LSE20180824110507_13767744/ <![CDATA[RNS press release - Purchase of Securities by Director ]]> https://www.proactiveinvestors.co.uk/companies/rns/156/LSE20180810171345_13752044/ Fri, 10 Aug 2018 17:13:45 +0100 https://www.proactiveinvestors.co.uk/companies/rns/156/LSE20180810171345_13752044/ <![CDATA[RNS press release - Purchases of Securities by Directors ]]> https://www.proactiveinvestors.co.uk/companies/rns/156/LSE20180810124145_13751735/ Fri, 10 Aug 2018 12:41:45 +0100 https://www.proactiveinvestors.co.uk/companies/rns/156/LSE20180810124145_13751735/ <![CDATA[Media files - Caledonia Mining's Blanket Mine 'a solid performer' despite challenging quarter ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/10090/caledonia-mining-s-blanket-mine-a-solid-performer-despite-challenging-quarter-10090.html Fri, 10 Aug 2018 11:21:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/10090/caledonia-mining-s-blanket-mine-a-solid-performer-despite-challenging-quarter-10090.html <![CDATA[News - Caledonia Mining grows gold output marginally in challenging quarter ]]> https://www.proactiveinvestors.co.uk/companies/news/202555/caledonia-mining-grows-gold-output-marginally-in-challenging-quarter-202555.html Caledonia Mining Corporation PLC (LON:CALE) told investors that gold output was marginally higher than the first quarter of 2018, in line with expectations.

Nonetheless, it came despite difficult operational circumstances.

READ: Caledonia Mining on schedule with Blanket ramp up

The Zimbabwe-focused gold miner said it produced 12,657 ounces – up 1.1% from the 12,521 ounces in the same three months last year – while for the six months, the tally came to 25,582 ounces.

Cost of production was also slightly higher, with the all-sustaining cost at US$856 per ounce in the second quarter, from US$855, while the average realised price for the quarter stood at US$1,278 from US$1,235 in the comparative quarter.

Gross profit amounted to US$5.14mln, up from US$5.03mln, and net profit attributable to shareholders rose by 275% to US$2.6mln from US$694mln. Earnings per share improved substantially too, up 86% to 35.2 cents, from 18.9 cents.

Caledonia ended June with US$5.3mln of net cash and equivalents.

"The second quarter of 2018 was a difficult quarter for the business as production was adversely affected by lower than expected grade and tonnes mined,” said Steve Curtis, Caledonia chief executive.

"Production of 12,657 ounces was marginally higher than the second quarter of 2017 and in line with our expectations for our 2018 guidance range of 55,000 - 59,000 ounces.

"Grade for the quarter was 3.19g/t, this is below target due to difficulties in accessing broken ground at AR South and higher than expected dilution at the Blanket ore body due to the introduction of long-hole stopping on the grounds of safety.

Capex to decline substantially after 2019

He highlighted that corrective measures had been put into place to improve grade, with the benefits anticipated in future quarters as both grade and overall tonnage increase.

Curtis added: “We experienced significant negative working capital movements during the quarter which had an adverse effect on operating cash flow with a net operating cash burn of $1.2 million during the quarter.

“This, combined with capital investment of $5.6 million during the quarter, had a negative impact on the balance sheet with a net cash balance of $5.3 million at the end of the quarter.”

"Capital investment for the quarter was in line with our capex plan for 2018 at $5.6 million, most of which was incurred at Central Shaft, which has now reached a depth of 1,106 meters.

“We expect capex to decline substantially after 2019 after we commission the Central Shaft as planned in 2020. The Central Shaft project is the key enabler of longer term value for our shareholders as we progress towards our production and cost targets by 2021."

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Thu, 09 Aug 2018 07:52:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/202555/caledonia-mining-grows-gold-output-marginally-in-challenging-quarter-202555.html
<![CDATA[RNS press release - Results for the Quarter ended 30 June 2018 ]]> https://www.proactiveinvestors.co.uk/companies/rns/156/LSE20180809070007_13748982/ Thu, 09 Aug 2018 07:00:07 +0100 https://www.proactiveinvestors.co.uk/companies/rns/156/LSE20180809070007_13748982/ <![CDATA[RNS press release - Accident at Blanket Mine ]]> https://www.proactiveinvestors.co.uk/companies/rns/156/LSE20180712103512_13715569/ Thu, 12 Jul 2018 10:35:12 +0100 https://www.proactiveinvestors.co.uk/companies/rns/156/LSE20180712103512_13715569/ <![CDATA[News - Caledonia Mining sees year-on-year production at Blanket creep up in first half ]]> https://www.proactiveinvestors.co.uk/companies/news/200650/caledonia-mining-sees-year-on-year-production-at-blanket-creep-up-in-first-half-200650.html Caledonia Mining Corporation (LON:CMCL, TSX:CAL) has reported an increase in gold production at its Blanket mine in Zimbabwe for the first half of the year 

The AIM-listed gold miner said around 25,582 ounces of gold had been produced in the first half of the year, marginally ahead of the 25,316 ounces produced in the same period a year ago.

READ: Caledonia Mining sees earnings boost in first quarter

For the second quarter, the company said around 12,657 ounces had been produced, a 1% increase on the second quarter of 2017 but 2% below production in the first quarter of 2018.

Caledonia added that production remained in line with expectations and maintained its full-year production guidance at between 55,000-59,000 ounces, with Blanket on track to progress toward a long-term target of 80,000 ounces by 2021.

Steve Curtis, chief executive of Caledonia Mining, said: "Production of 12,657 ounces in the second quarter of 2018 is consistent with the level achieved in the corresponding quarter of 2017 and the first quarter of 2018. Grade during the quarter was below our expectation although grade has reverted to budgeted levels in the recent weeks. The lower grade was partly a result of normal variations in the ore body and partly a one-off consequence of some modified mining practices which were adopted to improve safety.

He added: "The sinking of the central shaft remains according to plan and within budget, with the shaft currently at a depth of 1,073 meters; sinking is currently paused due to the process of cutting stations for horizontal development on 30 level. The project continues to progress well and we look forward to commencing production from the central shaft in 2020”.

In a separate announcement, the company also announced a fatality at the Blanket mine on July 12.

The accident occurred in a development area at the Blanket ore body section of the mine, with the company saying it had notified the Minister of Mines and Mining

Development and the Inspector of Mines and would provide all the necessary assistance to the Ministry of Mines Inspectorate Department in its enquiry into the incident.

--Adds information on mine fatality--

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Thu, 12 Jul 2018 07:45:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/200650/caledonia-mining-sees-year-on-year-production-at-blanket-creep-up-in-first-half-200650.html
<![CDATA[RNS press release - Q2 2018 Production Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/156/LSE20180712070003_13714693/ Thu, 12 Jul 2018 07:00:03 +0100 https://www.proactiveinvestors.co.uk/companies/rns/156/LSE20180712070003_13714693/ <![CDATA[RNS press release - Caledonia Declares Quarterly Dividend ]]> https://www.proactiveinvestors.co.uk/companies/rns/156/LSE20180703070010_13702710/ Tue, 03 Jul 2018 07:00:10 +0100 https://www.proactiveinvestors.co.uk/companies/rns/156/LSE20180703070010_13702710/ <![CDATA[RNS press release - Results of Annual General Meeting ]]> https://www.proactiveinvestors.co.uk/companies/rns/156/LSE20180627095710_13695505/ Wed, 27 Jun 2018 09:57:10 +0100 https://www.proactiveinvestors.co.uk/companies/rns/156/LSE20180627095710_13695505/ <![CDATA[RNS press release - Notice of Posting of AGM Materials ]]> https://www.proactiveinvestors.co.uk/companies/rns/156/LSE20180531070002_13660650/ Thu, 31 May 2018 07:00:02 +0100 https://www.proactiveinvestors.co.uk/companies/rns/156/LSE20180531070002_13660650/ <![CDATA[News - Caledonia Mining sees earnings boost in first quarter ]]> https://www.proactiveinvestors.co.uk/companies/news/196892/caledonia-mining-sees-earnings-boost-in-first-quarter-196892.html Caledonia Mining Corporation Plc (LON:CMCL) told investor that first quarter production, at 12,924 ounces of gold, was marginally higher than the same period of last year.

A stronger gold price and better export terms, meanwhile, sees adjusted earnings some 51% higher year-on-year at 40.1cents per share.

Steve Curtis, Caledonia chief executive, highlighted the “very strong cash generation” at the Blanket mine in Zimbabwe. Operating cash flow amounted to US$7.04mln for the three month period, up 296% from US$1.77mln.

WATCH: Caledonia Mining to see substantial earnings increase from Zimbabwe tax boost

“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,” Curtis said.

"Gold production was marginally higher in the Quarter compared to the first quarter of 2017 and was in-line with our expectations. 

“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.”

He added: "The Central Shaft remains a key enabler of long term value of the business and I am pleased to report that the project is progressing on schedule and within budget and importantly, remains fully funded by operating cash flow.

“For our technical team to deliver production and a transformational project for the business is a significant achievement.

“Following the decision to extend the shaft sinking project in November of 2017 the shaft has now reached 30 Level (990 metres) and work has commenced on establishing the station on this level.”

Caledonia expects to produce between 55,000 and 59,000 ounces of gold for the full year, while earnings are forecast between 165 to 190 cents per share.

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Mon, 14 May 2018 08:09:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/196892/caledonia-mining-sees-earnings-boost-in-first-quarter-196892.html
<![CDATA[RNS press release - Results for the Quarter ended 31 March 2018 ]]> https://www.proactiveinvestors.co.uk/companies/rns/156/LSE20180514070006_13638960/ Mon, 14 May 2018 07:00:06 +0100 https://www.proactiveinvestors.co.uk/companies/rns/156/LSE20180514070006_13638960/