TIDMCMCL
RNS Number : 5978M
Caledonia Mining Corporation PLC
13 January 2023
Caledonia Mining Corporation Plc
Record Annual Production at Blanket Mine and Guidance for
2023
(NYSE AMERICAN: CMCL; AIM: CMCL; VFEX: CMCL)
St Helier, January 13, 2023 - Caledonia Mining Corporation Plc
("Caledonia" or the "Company") announces quarterly and annual
production from the Blanket Mine in Zimbabwe ("Blanket") for the
quarter and year ended December 31, 2022. The Company also provides
guidance for the year to 31 December 2023 in respect of production,
on-mine costs and capital expenditure at Blanket and at the Bilboes
oxides project. All production numbers for 2022 are expressed on a
100 per cent basis and are based on final assays from the
refiner.
Production Highlights
-- Record gold production in 2022 of 80,775 ounces which
exceeded the top end of the Company's guidance and achieved its
long-standing production target.
-- 2022 annual production represents a 19.7 per cent increase on
the 67,476 ounces produced in 2021.
-- Quarterly gold production of 21,049 ounces, a 13.1 per cent
increase on the 18,604 ounces produced in Q4 2021.
2023 Guidance
Bilboes oxides Blanket Group consolidated
Gold production (oz) 12,500 -17,000(1) 75,000 - 80,000(2) 87,500 - 97,000
------------------ ------------------- -------------------
On-mine cost/oz ($)(3) 1,200 - 1,320 770 - 850 900 - 1,000
------------------ ------------------- -------------------
All-in sustaining cost/oz ($)(4) N/A N/A 1,150 - 1,250
------------------ ------------------- -------------------
Capital expenditure ($'m)(5) (,6) 0.5 28.3 30.9
------------------ ------------------- -------------------
Production from Bilboes Oxides
The Bilboes oxides project is a small-scale, two-to-three-year
project which entails the stripping of overburden to a depth of
approximately 40 meters to expose the oxidized material which will
be processed on-site using an existing heap leach facility which
has been in operation for the majority of the past decade . Ore
production from the Bilboes oxides project is expected to start in
mid-February and we anticipate recovering gold from the heap leach
from March. The project had an initial capital requirement of
approximately $540,000, which was expended in 2022. The operational
costs to remove the overburden and the oxide material will be
expensed as they are incurred. The stripping of the overburden
would have been required in due course to implement the larger
sulphide project and hence these costs would have been incurred in
any event.
Capital Expenditure
Capital expenditure at Blanket in 2023 includes approximately
$9.6 million in respect of a new tailings facility (reflecting
tightened regulatory requirements) and a further $9.8 million of
deep-level capital development so that operations can be maintained
in future years. In 2023, it is expected that approximately $2
million will be incurred in the preparation of a revised
feasibility study for the larger sulphide project at Bilboes. It is
anticipated that the cost of the projected capital expenditure for
the group will be met from operating cashflows and in-country
borrowings.
Commenting on the announcement, Mark Learmonth, Chief Executive
Officer, said:
"In 2014, Caledonia announced a plan to sink a new shaft
(Central Shaft) to 1,200 metres from surface, all funded through
internal cash flow, with a long-term target of achieving an annual
production rate of 80,000 ounces. I am delighted to announce today
that we have now achieved this target, with 2022 annual production
of 80,775 ounces - just over the top end of our guidance. T his
achievement is a huge milestone for the Company; it has been a
tremendous team effort and I would like to thank all of our
employees for their continued hard work.
"Production guidance for 2023 assumes that Blanket will broadly
maintain the production rate achieved in 2022. 2023 guidance also
includes the estimated production from the small oxides project at
Bilboes where mining activity is expected to commence in February,
and we expect to extract gold from the heap leach process in
March.
"Cost guidance at Blanket and Caledonia (i.e. excluding the
costs of the Bilboes oxides project) is consistent with the costs
we have historically incurred. We anticipate that the inflationary
pressures currently being experienced by most mining companies will
be offset by efficiencies resulting from the successful
implementation of Central Shaft. At the consolidated level, the
all-in sustaining cost per ounce is also expected to benefit from
the lower cost of electricity due to the recently installed solar
plant.
"The on-mine cost of the small oxides project at Bilboes
reflects the low grade of the oxide material. The oxides project is
not expected to be representative of the much larger sulphide
project at Bilboes in terms of grade, production levels or cost
profile. Nevertheless, the oxides project is expected to contribute
to the group's cash generation whilst at the same time allowing us
to pre-strip to the deeper sulphide material.
"Over the last 18 months the Company has built an attractive
portfolio of assets with the acquisitions of Bilboes, Motapa and
Maligreen. Blanket will continue to serve as a solid foundation for
this growth, as we look to progress our assets with our long-term
goal of becoming a multi asset gold producer."
This news release has been approved by Mr Dana Roets (B Eng
(Min.), MBA, Pr.Eng., FSAIMM, AMMSA), Chief Operating Officer, the
Company's qualified person as defined by Canada's National
Instrument 43-101 - Standards of Disclosure for Mineral Projects
("NI 43-101").
Caledonia Mining Corporation Plc
Mark Learmonth Tel: +44 1534 679 802
Camilla Horsfall Tel: +44 7817 841793
Cenkos Securities plc (Nomad and Joint
Broker) Tel: +44 207 397 1965
Adrian Hadden Tel: +44 131 220 9771
Neil McDonald Tel: +44 131 220 9775
Pearl Kellie
Liberum Capital Limited (Joint Broker)
Scott Mathieson/Kane Collings Tel: +44 20 3100 2000
BlytheRay Financial PR
Tim Blythe/Megan Ray Tel: +44 207 138 3204
3PPB
Patrick Chidley Tel: +1 917 991 7701
Paul Durham Tel: +1 203 940 2538
Curate Public Relations (Zimbabwe)
Debra Tatenda Tel: +263 77802131
IH Securities (Private) Limited (VFEX
Sponsor - Zimbabwe)
Dzika Dhana Tel: +263 (242) 745 119/33/39
Lloyd Mlotshwa
Note: The information contained within this announcement is
deemed by the Company to constitute inside information under the
Market Abuse Regulation (EU) No. 596/2014 ("MAR") as it forms part
of UK domestic law by virtue of the European Union (Withdrawal) Act
2018 and is disclosed in accordance with the Company's obligations
under Article 17 of MAR.
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. The forward-looking information contained in this news
release 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: the establishment
of estimated resources and reserves, the grade and recovery of
minerals which are mined varying from estimates, success of future
exploration and drilling programs, reliability of drilling,
sampling and assay data, the representativeness of mineralization
being accurate, success of planned metallurgical test-work, capital
availability and accuracy of estimated operating costs, obtaining
required governmental, environmental or other project approvals,
inflation, changes in exchange rates, fluctuations in commodity
prices, delays in the development of projects and Caledonia's
experience of project development in Zimbabwe 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 plans and assumptions. 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; 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 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.
National Instrument 43-101 - Standards of Disclosure for Mineral
Projects ("NI 43-101") is a rule of the Canadian Securities
Administrators which establishes standards for all public
disclosure an issuer makes of scientific and technical information
concerning mineral projects. Unless otherwise indicated, all
reserves and resource estimates contained in this press release
have been prepared in accordance with NI 43-101 and the Canadian
Institute of Mining, Metallurgy and Petroleum Classification
System. These standards differ from the requirements of the U.S.
Securities and Exchange Commission (the "SEC"), and reserve and
resource information contained in this press release may not be
comparable to similar information disclosed by U.S. companies. The
requirements of NI 43-101 for identification of reserves and
resources are also not the same as those of the SEC, and any
reserves or resources reported in compliance with NI 43-101 may not
qualify as "reserves" or "resources" under SEC standards.
Accordingly, the mineral reserve and resource information set forth
herein may not be comparable to information made public by
companies that report in accordance with United States
standards.
This news release is not an offer of the shares of Caledonia for
sale in the United States or elsewhere. This news release shall not
constitute an offer to sell or the solicitation of an offer to buy,
nor shall there be any sale of the shares of Caledonia, in any
province, state or jurisdiction in which such offer, solicitation
or sale would be unlawful prior to registration or qualification
under the securities laws of such province, state or
jurisdiction.
(1) Gold production will be derived from the measured mineral
resources set out in the technical report entitled "BILBOES GOLD
PROJECT FEASIBILITY STUDY" with effective date December 15, 2021
prepared by DRA Projects (Pty) Ltd and filed by the Company on
SEDAR (www.sedar.com) on July 21, 2022.
(2) Refer to the technical report entitled "Caledonia Mining
Corporation Plc NI 43-101 Technical Report on the Blanket Gold
Mine, Zimbabwe" dated May 17, 2021 prepared by Minxcon (Pty) Ltd
and filed by the Company on SEDAR on May 26, 2021.
(3) On-mine cost comprises the costs of labour, electricity,
consumables and other direct costs that are directly associated
with the production of gold. On-mine cost includes intercompany
procurement margins and the margin on the sale of solar power from
a wholly-owned subsidiary of Caledonia to Blanket.
(4) All-in sustaining cost includes inter alia sustaining
capital investment and the costs of the group's offices in Jersey,
London, Johannesburg and Harare but excludes intercompany margins
on procurement and on the sale of solar power by a wholly-owned
subsidiary of Caledonia to Blanket.
(5) Capital expenditure at the mine includes intercompany
margins; consolidated capital expenditure excludes intercompany
margins, but includes capital expenditure at the corporate level
that does not relate directly to either the Bilboes oxides project
or to Blanket.
(6) Group consolidated capital expenditure includes costs to
perform a feasibility study on the Bilboes sulphides project,
exploration at Maligreen and costs related to establishing a shared
services centre in Zimbabwe.
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END
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