Caledonia Mining Corporation Plc (“Caledonia” or the “Company”)
(NYSE AMERICAN: CMCL; AIM: CMCL; TSX: CAL)announces quarterly gold
production from the Blanket Mine (“Blanket”) in Zimbabwe for the
quarter ended June 30, 2019 (“Q2 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 12,712 ounces of gold were
produced during the Quarter, 6.4% above the 11,948 ounces produced
in the first quarter of 2019. Gold produced for the first half of
2019 was 24,660 ounces, approximately 3.4% below the 25,582 ounces
produced in the first half of 2018. Caledonia maintains its 2019
full year production guidance of 53,000 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 second quarter of 2019 was
slightly below our target but ahead of the comparable quarter in
2018 (Q2 2018: 12,657), and still at a level at which we remain
comfortable with our 2019 production guidance of 53,000 to 56,000
ounces for the full year. I am pleased to report that our efforts
to improve grade control have delivered results in the quarter
although this remains a significant area of focus.”
“We expect to complete the shaft sinking phase
of the central shaft project later this month, which will be a
significant milestone for our business. We look forward to
commencing production from the central shaft during H2 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 the Blanket gold mine in Zimbabwe. 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 March 31, 2019, Caledonia had cash of
approximately US$9.7 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
June 30, 2019 on or around August 13, 2019.
Caledonia Mining Corporation PlcMark
LearmonthMaurice Mason |
Tel: +44 1534 679 802 Tel: +44 759 078 1139 |
|
|
WH IrelandAdrian Hadden/Jessica Cave/James
Sinclair-Ford |
Tel: +44
20 7220 1751 |
|
|
Blytheweigh Tim Blythe/Camilla Horsfall/Megan
Ray |
Tel: +44
207 138 3204 |
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.
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