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Caledonia Mining notified of gold price rise by Zimbabwe refinery

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

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Price being paid is around 7% that spot currently

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.

Quick facts: Caledonia Mining Corporation

Price: 618 GBX

AIM:CMCL
Market: AIM
Market Cap: £66.52 m
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