Caledonia Mining Corporation PLC (AIM:CMCL, NYSE-A:CMCL)'s irst-half numbers were strong and ahead of forecasts, says Panmure Liberum, reflecting a good production period at the 64%-owned Blanket mine in Zimbabwe.
Meanwhile, Caledonia is now expecting to deliver the new feasibility study on the Bilboes Sulphide project in the first quarter of 2025, something that can be transformational for the group.
“We believe that the results represent further evidence of the sustainability of Blanket’s turnaround following the uncharacteristic hiccups of 2023,” said the broker.
“For its part, Caledonia today reiterated 2024 guidance for Blanket of 74-78koz even with a fall-of-ground incident in the high-grade Eroica section in July as alternative mining areas had been accessed by the end of the month.”
According to Panmure Liberum, the shares are oversold and a 'buy' with a 1,312p target price.
Shares rose 1.8% to 850p.