TIDMCMCL
RNS Number : 2520W
Caledonia Mining Corporation PLC
16 April 2019
Caledonia Mining Corporation Plc
Q1 2019 Production Update
(NYSE AMERICAN: CMCL; AIM: CMCL; TSX: CAL)
St Helier, April 16, 2019: Caledonia Mining Corporation Plc
("Caledonia" or the "Company") announces quarterly gold production
from the Blanket Mine ("Blanket") in Zimbabwe for the quarter ended
March 31, 2019 ("Q1 2019" or the "Quarter"). All production numbers
are expressed on a 100 per cent basis and are based on mine
production data and are therefore subject to adjustment following
final assay at the refiners.
Approximately 11,948 ounces of gold were produced during the
Quarter. Caledonia maintains its 2019 full year production guidance
of 53,000 ounces to 56,000 ounces and remains on track with
progress towards its target of 80,000 ounces by 2022.
Commenting on the announcement, Steve Curtis, Chief Executive
Officer, said:
"Production in the first quarter of 2019 was slightly below our
target and below the comparable quarter in 2018 (Q1 2018: 12,924),
albeit at a level which allows us to maintain our 2019 production
guidance of 53,000 to 56,000 ounces for the full year. Continued
difficulties with unstable electricity supply and grade dilution
which we experienced in 2018 had an adverse effect on production,
but improved drilling and blasting practices have been put in place
in pursuit of improved grade control and I am pleased to say that
efforts to minimize dilution are proving successful."
"Our technical team has worked tirelessly to mitigate the
effects of electricity supply interruptions and we continue to work
closely with the Zimbabwean electricity supply authorities to
address these challenges as well as investing internally to improve
our resilience to this issue."
"The sinking of the central shaft continues according to plan;
we are now only months away from the completion of the shaft
sinking phase of the project and are set to commence shaft
equipping from mid-2019. We look forward to commencing production
from the central shaft from mid-2020 which is expected to deliver
the Company's growth plan to achieve 75,000 ounces in 2021 and
80,000 ounces by 2022."
About Caledonia Mining
Caledonia's primary asset is a 49 per cent interest in an
operating gold mine in Zimbabwe, Blanket. In November 2018,
Caledonia announced that it had signed a legally binding agreement
to increase its shareholding in Blanket to 64%, subject to the
receipt of, amongst other things, regulatory approvals. Caledonia's
shares are listed on the NYSE American (symbol: CMCL) and on the
Toronto Stock Exchange (symbol: CAL) and depositary interests
representing the shares are traded on London's AIM (symbol:
CMCL).
As at December 31, 2018, Caledonia had cash of approximately
US$11.2 million. The Company plans for Blanket to increase gold
production from 54,511 ounces in 2018 to approximately 75,000
ounces in 2021 and approximately 80,000 ounces by 2022; Blanket's
target production for 2019 is 53,000 to 56,000 ounces. Caledonia
expects to publish its results for the quarter to March 31, 2019 on
or around May 14, 2019.
Caledonia Mining Corporation Plc
Mark Learmonth Tel: +44 1534 679 802
Maurice Mason Tel: +44 759 078 1139
WH Ireland
Adrian Hadden/Jessica Cave/ Tel: +44 20 7220 1751
James Sinclair-Ford
Blytheweigh
Tim Blythe/Camilla Horsfall/Megan Tel: +44 207 138 3204
Ray
The information contained within this announcement is deemed by
the Company to constitute inside information under the Market Abuse
Regulation (EU) No. 596/2014.
Cautionary Note Concerning Forward-Looking Information
Information and statements contained in this news release that
are not historical facts are "forward-looking information" within
the meaning of applicable securities legislation that involve risks
and uncertainties relating, but not limited to Caledonia's current
expectations, intentions, plans, and beliefs. Forward-looking
information can often be identified by forward-looking words such
as "anticipate", "believe", "expect", "goal", "plan", "target",
"intend", "estimate", "could", "should", "may" and "will" or the
negative of these terms or similar words suggesting future
outcomes, or other expectations, beliefs, plans, objectives,
assumptions, intentions or statements about future events or
performance. Examples of forward-looking information in this news
release include: production guidance, estimates of future/targeted
production rates, and our plans and timing regarding further
exploration and drilling and development. This forward-looking
information is based, in part, on assumptions and factors that may
change or prove to be incorrect, thus causing actual results,
performance or achievements to be materially different from those
expressed or implied by forward-looking information. Such factors
and assumptions include, but are not limited to: failure to
establish estimated resources and reserves, the grade and recovery
of ore which is mined varying from estimates, success of future
exploration and drilling programs, reliability of drilling,
sampling and assay data, assumptions regarding the
representativeness of mineralization being inaccurate, success of
planned metallurgical test-work, capital and operating costs
varying significantly from estimates, delays in obtaining or
failures to obtain required governmental, environmental or other
project approvals, inflation, changes in exchange rates,
fluctuations in commodity prices, delays in the development of
projects and other factors.
Security holders, potential security holders and other
prospective investors should be aware that these statements are
subject to known and unknown risks, uncertainties and other factors
that could cause actual results to differ materially from those
suggested by the forward-looking statements. Such factors include,
but are not limited to: risks relating to estimates of mineral
reserves and mineral resources proving to be inaccurate,
fluctuations in gold price, risks and hazards associated with the
business of mineral exploration, development and mining, risks
relating to the credit worthiness or financial condition of
suppliers, refiners and other parties with whom the Company does
business, inadequate insurance, or inability to obtain insurance,
to cover these risks and hazards, employee relations, relationships
with and claims by local communities and indigenous populations,
political risk, availability and increasing costs associated with
mining inputs and labour; the speculative nature of mineral
exploration and development, including the risks of obtaining or
maintaining necessary licenses and permits, diminishing quantities
or grades of mineral reserves as mining occur, ; global financial
condition, the actual results of current exploration activities,
changes to conclusions of economic evaluations, and changes in
project parameters to deal with unanticipated economic or other
factors, risks of increased capital and operating costs,
environmental, safety or regulatory risks, expropriation, the
Company's title to properties including ownership thereof,
increased competition in the mining industry for properties,
equipment, qualified personnel and their costs, risks relating to
the uncertainty of timing of events including targeted production
rate increase and currency fluctuations. Security holders,
potential security holders and other prospective investors are
cautioned not to place undue reliance on forward-looking
information. By its nature, forward-looking information involves
numerous assumptions, inherent risks and uncertainties, both
general and specific, that contribute to the possibility that the
predictions, forecasts, projections and various future events will
not occur. Caledonia undertakes no obligation to update publicly or
otherwise revise any forward-looking information whether as a
result of new information, future events or other such factors
which affect this information, except as required by law.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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