viewCaledonia Mining Corporation PLC

Caledonia Mining hails resilience during coronavrius disruption


  • Caledonia Mining operates the Blanket gold mine in Zimbabwe
  • New central shaft at the mine has been sunk
  • Target is 80,000oz per year by 2022
  • Stake in Blanket now up to 64%
Caledonia Mining Corporation - Caledonia Mining into ramp-up phase as central shaft excavation completes

Quick facts: Caledonia Mining Corporation PLC

Price: 1050 GBX

Market: AIM
Market Cap: £127.25 m

What it owns

Caledonia owns the Blanket gold mine in Southern Zimbabwe. The company has a long track record of successful operations there and is currently in the final stages of a major expansion.

How it's doing

The Blanket mine produced 15,164 ounces of gold during the quarter ended September 30, 2020, an increase of 11.1% on the 13,646 ounces produced in the corresponding quarter of 2019.

It takes the total amount of gold produced in the nine months to end September 2020 to 42,896 ounces, 12% ahead of production at the same stage in 2019.

The company boosted its production guidance for the year to December 31, 2020, to between 55,000 and 58,000 ounces.

According to the plan, Caledonia remains on track to achieve its production target of 80,000 ounces by 2022.

From the chief executive

"The production of 15,164 ounces in the third quarter is a record result and is an increase of more than 11% compared to the corresponding quarter in 2019,” Caldonia chief executive Steve Curtis said in a statement.

"Notwithstanding the negative effect of the coronavirus pandemic on supply chains and operating arrangements, Blanket has delivered robust production results for the first nine months of 2020. Due to the strong production, I am delighted that we are now able to increase our production guidance from 53,000 to 56,000 ounces to 55,000 to 58,000 ounces. Along with the increased dividend, this really demonstrates the strength of our business and I would like to thank the team for this result."


Inflexion points

  • 45% production growth planned

  • Rising cash generation from 2020

  • All-in-sustaining cost guidance of $810/oz – $850/oz

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