Caledonia Mining Corporation Plc COM SHS NVP (DI) (LON:CMCL) announced today its gold production from the Blanket Mine in Zimbabwe, for the quarter ended 30 June 2017 (“Q2 2017” 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 12,522 ounces of gold were produced during the Quarter, this amount was approximately equivalent to the gold produced in Q2 2016 (12,510 ounces). Gold produced for the first half of 2017 was 25,316 ounces, an 8.5 per cent increase on the 23,322 ounces produced in the first half of 2016. Caledonia maintains its’ 2017 full year production guidance of between 52,000 ounces and 57,000 ounces and remains on track with progress towards its long-term target of 80,000 ounces by 2021.
Commenting on the production for Q2 of 2017, Steve Curtis, Caledonia Mining Corporation Plc Chief Executive Officer, said: “Notwithstanding the 8.5 per cent increase in production in the first six months of 2017 compared to the first six months of 2016, the second quarter of 2017 presented some operating challenges at Blanket. Although we have improved the infrastructure on 750 metre level in recent years, we are still constrained in our ability to move increased quantities of ore and development waste. Accordingly, in quarter 2, Caledonia took the decision to safeguard the long-term production target of 80,000 ounces in 2021 by prioritizing capital development tonnage over ore production tonnage. This resulted in the 2017 production target being reduced from 60,000 ounces to a revised target of between 52,000 and 57,000 ounces.
“The existing infrastructure constraints at Blanket are temporary and are expected to be fully alleviated when the new Central Shaft is commissioned in the second half of 2018. I am pleased to say that work on the Central Shaft remains on track.
“In the meantime, management has implemented further measures to address the short-term infrastructure constraints. We are optimistic that these measures will result in a higher quarterly production in the remaining quarters of 2017 and we are confident that will achieve the revised production guidance for 2017 of between 52,000 and 57,000 ounces of gold.”
About Caledonia Mining
Following the implementation of indigenisation in Zimbabwe, Caledonia’s primary asset is a 49 per cent 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 currently traded on the American OTCQX as “CALVD”.
On 26 June 2017, Caledonia implemented a share consolidation on an effective basis of 1 new Caledonia share for every pre-existing 5 shares. This consolidation was implemented with the objective of securing a listing for Caledonia’s shares on the NYSE MKT. It is anticipated that the Caledonia’s shares will commence trading on the NYSE MKT by the end of July 2017.
At 31 March 2017, Caledonia had cash of US$11.7m. 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 52,000 – 57,000 ounces. Caledonia expects to publish its results for the quarter to 30 June 2017 on 14 August 2017.
