Caledonia Mining Corporation PLC (AIM:CMCL, NYSE-A:CMCL) made a good comeback in the second half of the year to produce 75,416oz gold at Blanket in 2023, says broker Cavendish.
Fourth-quarter production from Blanket was 20,172oz.
Guidance for the current year, 2024, of 74,000-78,000oz is 2,000oz less than the broker forecast due to lower margin areas being removed from the mine plan.
“We feel this is prudent as the economics become more robust as the company completes its capital programme at Blanket with a new tailings storage facility and further underground development,” Cavendish added.
The strategy for the Bilboes sulphide project should be decided this quarter and will include an update on the existing feasibility study for a 170,000oz/pa of gold project and work on an alternative phased approach.
Cavendish adds that it values Caledonia at US$305 million or £12.94/fully diluted share, based on a 2024 gold price of US$1,900/oz and a long-term price of US$1,700/oz, and a 12% discount rate.
Shares rose 0.5% to 930p.