TIDMCMCL
RNS Number : 8344T
Caledonia Mining Corporation PLC
11 January 2017
Caledonia Mining Corporation Plc
Record gold production from the Blanket Gold Mine
(TSX: CAL, OTCQX: CALVF, AIM: CMCL)
11 January 2017: Caledonia Mining Corporation Plc ("Caledonia"
or the "Company") announces record quarterly and annual gold
production from its 49 per cent owned subsidiary, the Blanket Gold
Mine ("Blanket") in Zimbabwe, for the quarter and year ended 31
December, 2016. All production numbers are expressed on a 100 per
cent basis and are subject to adjustment following final assay at
the refiners. Production includes work-in-progress of approximately
754 ounces as at 31 December 2016.
-- Approximately 13,591 ounces of gold were produced during Q4
2016, a new quarterly production record representing an 18 per cent
increase on the gold produced in Q4 2015 (11,515 ounces) and a 1.2
per cent increase on the gold produced in Q3 2016 (13,428
ounces).
-- Total 2016 gold production was approximately 50,351 ounces, a
new annual production record representing a 17.6 per cent increase
over the annual gold production in 2015 of 42,804 ounces.
-- The increase in production in 2016 was largely due to the
start of production from below 750 meters, improvements in
underground infrastructure and the commissioning of the new ball
mill, in line with the Investment Plan at Blanket.
Target gold production for 2017 is approximately 60,000 ounces
at an estimated on-mine cost* in the range of $600 to $630 per
ounce and an All-in Sustaining Cost* in the range of $810 to $850
per ounce. Blanket remains on-track to increase annual production
to approximately 80,000 ounces of gold by 2021.
Chief Executive Officer, Steve Curtis, said,
"2016 was a significant year for Caledonia as the continued
investment at Blanket begins to bear fruit. Gold production in 2016
of 50,351 ounces surpassed the previous record from underground
operations of 45,530 ounces, which was achieved in 2013. The record
level of production was due to the commencement of production below
750 meters following the successful completion of the No. 6 Winze
and other infrastructure projects; improved underground
infrastructure and the installation of the new ball mill late in
2016.
As well as achieving this record gold production level, the
sinking of the new central shaft continued according to plan and
reached a depth of 534 m by year end.
We look forward to a further improvement in 2017 as we target
60,000 ounces of production from Blanket, being a 20 per cent
increase on the production achieved in 2016. We continue our
progress towards annual production of 80,000 ounces by 2021.
As we increase production we expect earnings will continue to
benefit from the increased sales volumes and from a lower average
cost per ounce as fixed production costs and overheads are spread
across higher production. This improvement makes us confident of
achieving a significant improvement in earnings for 2017. Caledonia
expects to publish its results for the year to December 31, 2016 on
March 21, 2017."
*"On-mine cost" and "All-in Sustaining Cost" are non-IFRS
measures. Please see "Non-IFRS Measures" in the Q3 MD&A for an
explanation of how these measures are reconciled to IFRS
measures.
In terms of National Instrument 51-102, Caledonia advises
shareholders that following the publication of the Company's
results for the quarter to September 30, 2016 on November 14, 2016
Edison Investment Research Limited updated its earnings forecast
for 2017, taking into account the cost and production information
included in the Q3 2016 MD&A and applying its forecast gold
price of $1,275 per ounce. This research has been prepared on a
paid-for basis, projects earnings per share for 2017 of 34.2 cents
and will be available on the Company's website. Edison's updated
earnings forecast for 2017 of 34.2 cents is lower than the previous
consensus forecast of approximately 45 cents primarily due to
Edison's use of a lower forecast gold price ($1,275 per ounce
compared to $1,341 per ounce previously) and the revised 2017
production guidance of approximately 60,000 ounces compared to
65,000 ounces previously.
The Company believes this forecast to be reasonable based on its
production and cost estimates above, which are consistent with
those included in the Q3 MD&A, and using Edison's assumed gold
price. Additional research reports on the Company are also prepared
by WH Ireland Limited and Marten & Co Limited.
About Caledonia Mining
Following the implementation of indigenisation in Zimbabwe,
Caledonia's primary asset is a 49% interest in an operating gold
mine in Zimbabwe ("Blanket"). Caledonia's shares are listed in
Canada on the Toronto Stock Exchange as "CAL", on London's AIM as
"CMCL" and are also traded on the American OTCQX as "CALVF".
At 30 September 2016, Caledonia had net cash of US$12.4 m.
Blanket plans to increase production from 50,351 ounces in 2016 to
approximately 80,000 ounces in 2021; Blanket's target production
for 2017 is approximately 60,000 ounces.
For further information please contact:
Caledonia Mining Corporation WH Ireland
Plc Adrian Hadden/Nick Prowting
Mark Learmonth Tel: +44 20 7220 1751
Tel: +44 1534 702 998
marklearmonth@caledoniamining.com
Maurice Mason Blytheweigh
Tel: +44 759 078 1139 Tim Blythe/Camilla Horsfall/Megan
mauricemason@caledoniamining.com Ray
Tel: +44 20 7138 3204
Note: This announcement contains inside information which is
disclosed in accordance with the Market Abuse Regulation.
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.
Potential shareholders and 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
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. Shareholders
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.
The company news service from the London Stock Exchange
END
UPDEAKFEFDSXEFF
(END) Dow Jones Newswires
January 11, 2017 02:00 ET (07:00 GMT)
Caledonia Mining (LSE:CMCL)
Historical Stock Chart
From Apr 2024 to May 2024
Caledonia Mining (LSE:CMCL)
Historical Stock Chart
From May 2023 to May 2024