TIDMCMCL
RNS Number : 8333G
Caledonia Mining Corporation PLC
30 November 2020
Caledonia Mining Corporation Plc
Completion of Equipping Phase of Central Shaft
(NYSE AMERICAN: CMCL; AIM: CMCL)
November 30, 2020: Caledonia Mining Corporation Plc ("Caledonia"
or the "Company") is pleased to announce that the phase of fully
equipping the Central Shaft from its base to the surface collar is
now complete and it is on track to be commissioned in the first
quarter of 2021. This has been completed considerably below budget
and within a time frame to underpin the Company's expectation of
delivering production of 80,000 ounces of gold in 2022.
Key features of the Central Shaft project since the start on 3
August 2015 include:
-- Safety : 1,850 fatality free shifts with only two lost time
injuries (LTI); 920 shifts since last LTI;
-- Extended scope: the scope of the Central Shaft project was
extended from an initial target depth of 1,089 meters to a final
depth of 1,204 meters;
-- Project is self-funded and is owner-built by Blanket crews
with supervision from Sinking Engineering Mining Construction;
-- During shaft sinking, more than 1,800 metres of
infrastructure development was completed including mid-shaft
loading;
-- Capital cost to date is approximately $60 million, compared
to initial sinking contractor quotes received of about $100
million;
-- Increased mine-life: the shaft has extended Blanket's life of
mine to the current time horizon of 2034;
-- Increased production: the Central Shaft is expected to
increase production by around 45 per cent from approximately 55,000
ounces of gold in 2019 to the target rate of 80,000 ounces from
2022;
-- Reduced costs: economies of scale and operational
efficiencies arising from the Central Shaft are expected to reduce
the all-in sustaining cost per ounce of gold from $855 [1] in 2019
to between $700 and $800 per ounce;
-- Increased exploration: the Central Shaft will provide access
for further deep-level exploration which, if successful, may extend
Blanket mine life beyond 2034;
-- The erecting and fixing of the headgear is due to be
completed by the end of 2020 and commissioning is on track for
first quarter 2021.
Commenting on news of the completion, Steve Curtis, Chief
Executive Officer, said
"The completion of the equipping phase is a huge milestone for
the Company, and no-one should underestimate this achievement. The
last five years have been a tremendous team effort and we commend
our employees for their hard work and their commitment to safety.
Shaft sinking is widely regarded as one of the most dangerous
activities in mining and I am proud to report that over more than
five years the crew achieved 1,850 fatality free shifts to date
with only two LTI and achieving more than one million LTI free man
hours worked since the last LTI.
"We've invested approximately $60 million in this project since
we first announced it in 2015 and it has been owner-built and fully
funded through internal cash flow and has been completed at a cost
that is well below initial quotes received.
"Central Shaft is one of the largest gold mining investment
projects in Zimbabwe and will be transformational to our business:
our target production is set to increase by 45 per cent to 80,000
ounces by 2022 while our long-term all-in sustaining costs are
expected to drop to $700-$800 per ounce. Central Shaft will also
position us to step-up our deep level exploration which, if
successful may extend Blanket's life of mine, which is currently to
2034.
"Over the last five years we have built a solid foundation for
the Company, we have a healthy balance sheet, a strong gold price
and a highly cash generative asset with free cash flow expected to
increase significantly with the rise in production. This is a very
exciting time for Caledonia, and I would like to take this
opportunity to recognise Dana Roets (Chief Operating Officer),
Caxton Mangezi (Blanket Mine General Manager), Wimpy Nel (Design
Engineer), Carel Greeff (Projects Manager), the late Rodney Voight
(Civils Design Engineer), the entire team at Blanket, our technical
team in Johannesburg especially Deon Niemand and the contractors
for their outstanding performance as we take the business into its
next chapter."
___________
Mr Dana Roets (B Eng (Min.), MBA, Pr.Eng., FSAIMM, AMMSA), Chief
Operating Officer, is the Company's qualified person as defined by
Canada's National Instrument 43-101 and has approved any scientific
or technical information contained in this news release.
For further information please contact:
Caledonia Mining Corporation Plc
Mark Learmonth Tel: +44 1534 679 802
Camilla Horsfall Tel: +44 7817 841793
WH Ireland
Adrian Hadden/James Sinclair-Ford Tel: +44 20 7220 1751
Blytheweigh
Tim Blythe/Megan Ray Tel: +44 207 138 3204
3PPB
Patrick Chidley Tel: +1 917 991 7701
Paul Durham Tel: +1 203 940 2538
Note: This announcement contains inside information which is
disclosed in accordance with 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",
"financial outlooks" or "future oriented financial information"
(collectively, "forward-looking information") within" 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, construction plans,
financial and shareholders returns on investment in construction
projects and electricity production/supply to the mine. 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, the completion of construction projects,
the proposed benefits from construction projects and other
factors.
To the extent any forward-looking information herein constitutes
a financial outlook or future oriented financial information,
any such statement is made as of the date hereof and included
herein to provide prospective investors with an understanding of
the Company's construction plans and assumptions. Security holders,
potential security holders and other prospective investors are
cautioned that such information may not be appropriate for other
purposes and 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,
contractors 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; risks related to natural disasters, terrorism, civil unrest,
public health concerns (including health epidemics or outbreaks of
communicable diseases such as the coronavirus (COVID-19));
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 occurs; 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, construction
activity and currency fluctuations. Security holders, potential
security holders and other prospective investors are cautioned that
the assumptions used in the preparation of such
forward-looking information, although considered reasonable at
the time of preparation, may prove to be imprecise and,
accordingly, they should not to place undue reliance on such
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.
[1] $855 per ounce e xcludes $1.93 million of income which was
received as a government grant in terms of the export credit
incentive scheme which has subsequently been discontinued; refer to
section 10 of the MD&A published on March 18, 2019 for the
calculation of all-in sustaining cost per ounce. Forecast costs for
2022 take no account of any income which may arise if the export
credit incentive scheme (or similar arrangements) is
re-introduced.
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END
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