TIDMCMCL
RNS Number : 1475G
Caledonia Mining Corporation PLC
17 July 2023
Caledonia Mining Corporation Plc
Q2 2023 Production Update
(NYSE AMERICAN: CMCL; AIM: CMCL; VFEX: CMCL)
St Helier, July 17, 2023 - Caledonia Mining Corporation Plc
("Caledonia" or the "Company") announces quarterly gold production
from the Blanket Mine ("Blanket") and from the Bilboes Oxide
Project ("Bilboes Oxides") in Zimbabwe for the quarter ended June
30, 2023 (the "Quarter") and the half year ended June 30, 2023. All
production numbers are expressed on a 100 per cent basis and are
based on final assays from the refiner.
Q2 2022 Q1 2023 Q2 2023
(Recently Change
(Comparable Completed (H1 2022
quarter) (Prior Quarter) Quarter) H1 2022 H1 2023 to H1 2023)
Blanket 20,091 16,036 17,436 38,606 33,472 -13.3%
-------------- ------------------ ------------ --------- --------- -------------
Bilboes
Oxides - 105 1,076 - 1,181 n/a
-------------- ------------------ ------------ --------- --------- -------------
Total 20,091 16,141 18,512 38,606 34,653 -10.2%
-------------- ------------------ ------------ --------- --------- -------------
Blanket
Production at Blanket in the Quarter was 17,436 ounces,
representing an 8.7 per cent increase on the 16,036 ounces produced
in the first quarter of 2023. Gold produced at Blanket in the first
six months of 2023 was 33,472 ounces, compared to 38,606 ounces
produced in the first half year of 2022.
Production at Blanket in the Quarter, although improved from the
previous quarter, was still below expectations. This was due to
several factors which impacted the implementation of the mine plan
in certain mining areas. These factors included a high level of
missed blasts and errors in blasting accuracy which contributed to
inadequate face advances. Management has focused intensively on
these problem areas and production in late June and in July has
shown a marked improvement.
Production for the first six months of 2023 was lower than the
first six months of 2022 due to the issues arising in the Quarter
(as noted above) in addition to difficulties encountered in the
prior quarter which, as previously advised, included several
mechanical breakdowns.
In light of the improved performance in late June and early
July, management re-iterates production guidance for Blanket for
the year to December 31, 2023 of between 75,000 and 80,000 ounces
[1] .
Bilboes
1,076 ounces of gold were produced from the Bilboes Oxides in
the Quarter, showing an increase from the 105 ounces produced in
the first quarter of 2023. There was no production at the Bilboes
Oxides in 2022.
The Bilboes Oxides was intended as a small-scale, low-margin,
short-term project which was primarily justified by the benefits of
pre-stripping in anticipation of the development of the larger
sulphide project.
The Company has previously withdrawn guidance for the Bilboes
Oxides and, in the absence of a reasonable prospect of it making an
overall cash contribution, the project will be returned to care and
maintenance with effect from October 1, 2023.
Mining and metallurgical processing will continue at Bilboes
Oxides until the end of September; thereafter leaching of material
that has already been deposited on the leach pad will continue.
Oxide mining and processing will resume when the stripping of the
waste for the sulphide project commences.
Commenting on the announcement, Mark Learmonth, Chief Executive
Officer, said:
"After an encouraging start to the second quarter at Blanket,
production was below expectations in May and the first half of
June.
"Management interventions to identify and address the problems
appear to have been successful and production improved
substantially in late June and early July. Production in the first
week of July was at a record level and was almost 400 ounces better
than planned. Whilst we have much work to do to make up for the
production shortfall from the first six months, we are confident
that we will do so and we therefore re-iterate our production
guidance for 2023 of between 75,000 and 80,000 ounces of gold.
"The outlook for the Bilboes Oxides is insufficiently certain
unless it is done in conjunction with the waste stripping for the
sulphide project. Accordingly, we have decided to return this
project to care and maintenance until the work commences on the
larger sulphide project when the remaining oxide material will be
mined and processed alongside the sulphide ore. This outcome has no
bearing on the quality of the much larger sulphide project which
was the sole reason for acquiring Bilboes."
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 successful
implementation of mine plans, 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.
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] Refer to the technical report entitled "NI 43-101 Technical
Report on the Blanket Gold Mine, Zimbabwe" with effective date
September 1, 2022 prepared by Minxcon (Pty) Ltd filed by the
Company on SEDAR (www.sedar.com) on March 13, 2023
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END
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