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Gold & silver

Liberum repeats 'buy' rating on Caledonia Mining after yet another quarterly production record at Blanket

The Blanket gold mine in Zimbabwe saw third quarter production of 21.1koz bringing the 2022 nine-month total to 59.7koz, and Caledonia reiterated that full-year 2022 production will be “at the top end” of its guidance range of 73-80koz

Analysts at Liberum Capital have repeated their 'buy' rating on Caledonia Mining Corporation PLC (AIM:CMCL, NYSE-A:CMCL) after the firm's 64%-owned Blanket gold mine in Zimbabwe achieved yet another quarterly production record.

The analysts noted that Blanket's third quarter gold production of 21.1koz brings the 2022 nine-month total to 59.7koz, noting that Caledonia reiterated that full-year 2022 production will be “at the top end” of its guidance range of 73-80koz.

However, the analysts said it now appears to them that not only could this range be exceeded, but that their 81koz target could be surpassed.

They pointed out that underlining their confidence in Caledonia’s prospects, the company's CEO and CFO last week purchased £25,000 and US$22,000 of shares, respectively.

The analysts concluded: "Investors would do well to follow suit: BUY, we urge."

Liberum Capital has an unchanged 1,319p price target on Caledonia shares, which were trading at 925p on Wednesday afternoon, up 2.2%.

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