Caledonia Mining Corporation PLC (AIM:CMCL, NYSE-A:CMCL)’s comment that production and costs at the 64%-owned Blanket mine for 2024 to date have been consistent with guidance provides some reassurance in the profit warning, notes house broker Liberum.
Zimbabwe-focused Caledonia has already guided this year to production of 74-78,000oz (100% basis) at US$870-970/oz on-mine cost and US$1,370-1,470/oz AISC.
Caledonia also indicated that most of the causes of the profit downturn were one-offs and will drop out of the 2024 numbers.
A feasibility study at new project Bilboes is due shortly, and Liberum believes that this deposit, combined with the nearby Motapa, will prove transformational for the miner's fortunes.
Liberum also pointed out that Caledonia has been paying quarterly dividends consistently since 2014 and announced its last payout in January.
Full results are due by 28 March and Liberum is suspending its recommendation until it has seen the numbers.