Caledonia Mining Corporation Plc: Cap and collar hedging contract over a portion of 2022 gold production
February 24 2022 - 2:00AM
Caledonia Mining Corporation Plc (“Caledonia” or the “Company”)
(NYSE AMERICAN: CMCL; AIM: CMCL; VFEX: CMCL) has entered into a
zero cost contract to hedge approximately 25% of 2022 target gold
production at Blanket via a cap and collar hedging contract for
20,000 ounces of gold over a period of 5 months from March to July
2022.
The hedging contract has a cap of $1,940 and a
collar of $1,825, meaning that, for the 4,000 ounces of gold per
month for the period, Caledonia will receive an effective gold
price per ounce of not less than $1,825 or greater than $1,940 and
will receive an effective spot gold price between these two
levels.
Commenting on the announcement, Caledonia’s
Chief Executive Officer Steve Curtis said:
“Hedging gold production is not an easy decision
for a gold miner as investors usually wish to maximise exposure to
gold price upside. However, given the fact that our capital
expenditure phasing is heavily weighted towards the first half of
2022 as we ramp up gold production, the board considered it prudent
to take advantage of the current strong gold price to protect the
balance sheet during this phase of higher capital investment with a
five-month hedging arrangement over a portion of our
production.”
Caledonia Mining Corporation PlcMark
LearmonthCamilla Horsfall |
Tel: +44 1534 679 802Tel: +44 7817 841793 |
WH IrelandAdrian
Hadden/ Andrew De Andrade |
Tel: +44 20 7220 1751 |
Blytheweigh Financial
PRTim Blythe/Megan Ray |
Tel: +44 207 138 3204 |
3PPBPatrick
ChidleyPaul Durham |
Tel: +1 917 991 7701Tel: +1 203
940 2538 |
Curate Public Relations
(Zimbabwe)Debra Tatenda |
Tel: +263 77802131 |
Note: This announcement contains inside
information which is disclosed in accordance with 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.
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