Caledonia on course to achieve 2017 target

Published: 05 July 2017

Caledonia Mining Corporation is on course to achieving its 2017 gold production target of 52 000 ounces to 57 000 ounces at its 49 percent-owned Blanket Mine in Zimbabwe.

This is after the Toronto Stock Exchange listed gold mining firm had cut its production target to between 52 000 and 57 000 ounces from 60 000 ounces despite improvements in tramming capacity at its Blanket Mine.

Caledonia chief executive Steve Curtis said in a statement yesterday that the company is progressing towards increasing annual production to 80 000 ounces by 2021.

"We are targeting production of 52 000 to 57 000 ounces of gold from the Blanket Mine during 2017 as we progress towards increasing annual production to 80,000 ounces by 2021 as a result of our Investment Plan.

"I am confident that as gold production continues to increase at the Blanket Mine, the cost per ounce of gold produced will continue to fall, with a commensurate improvement in cash generation," said Mr Curtis. "Caledonia remains committed to distributing cash to shareholders whilst simultaneously retaining a robust balance sheet," he said.

In the first quarter of this year, the mining company reported an 18 percent increase in production to 12 794 ounces from 10 822 ounces of the corresponding quarter in 2016.

Increased production Blanket Mine was due to increased tonnes milled, higher grade and improved recoveries. As part of its initiative to please shareholders, Caledonia declared of $0,0687 on each of the company's common shares yesterday.

This amount represents a revised quarterly dividend policy following the recently completed consolidation of the company's common shares on an overall one for five basis.

"Caledonia maintains its quarterly dividend but at a new level of 6,875 cents per share, reflecting the successful share consolidation on an overall one for five basis, which the company completed at the end of June 2017," said Mr Curtis.

The mining company which is current listed on the Toronto Stock Exchange intends to list on the New York Stock Exchange as it seeks increased trading liquidity and access to a larger pool of potential United States investors.

The company has already made submissions with a view to listing as soon as reasonably practicable following the Annual General Meeting subject to approval from NYSE MKT.
- the herald

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