TIDMCMCL
RNS Number : 9380M
Caledonia Mining Corporation PLC
14 January 2019
Caledonia Mining Corporation Plc
2018 Production Update and 2019 Production Guidance
(NYSE AMERICAN: CMCL; AIM: CMCL; TSX: CAL)
St Helier, January 14, 2019 - Caledonia Mining Corporation Plc
("Caledonia" or the "Company") announces gold production from the
Blanket Mine ("Blanket") in Zimbabwe for the quarter and year ended
December 31, 2018. 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 14,952 ounces of gold were produced during the
quarter ended December 31, 2018 (the "Quarter"), 7 per cent higher
than the previous quarter ("Q3 2018"). Total gold production for
the year to December 31, 2018 was approximately 54,512 ounces,
which is in line with 2018 production guidance which was a range of
54,000 to 56,000 ounces. Caledonia advises investors that gold
production for 2019 is expected to be between 53,000 and 56,000
ounces.
Caledonia remains on track to achieve production of
approximately 80,000 ounces of gold per annum from 2021 following
completion of the Central Shaft. The Central Shaft is currently at
a depth of 1,150 meters and will be sunk to a depth of 1,204
meters. It is anticipated that shaft sinking will be completed
towards the middle of 2019 after which the shaft will be equipped
and commissioned.
Following an increase in exploration activity at Blanket, since
early 2015 Caledonia has announced 7 successive increases in the
resource base as a result of which Blanket's life of mine has been
extended from 6 years as at the end of 2014, to 14 years as at the
end of 2018. Exploration continues at Blanket with the objective of
further extending Blanket's life of mine.
Caledonia also advises that it has entered into gold price
hedging contracts for the 5 months from February 2019 until June
2019 for 22,500 ounces of production through the purchase of put
options with a strike price of $1,250 per ounce. The hedge will
ensure that Caledonia receive a minimum price of $1,250 per ounce
of gold for the duration of the contracts whilst maintaining full
upside participation.
Caledonia expects to release its results for the year to
December 31, 2018 on or about March 20, 2019.
Commenting on the announcement, Steve Curtis, Chief Executive
Officer, said:
"We are pleased to see consistent production performance from
Blanket in the fourth quarter of 2018 to deliver 14,952 ounces for
the quarter and 54,512 ounces for the full year. Until the Central
Shaft has been commissioned in 2021, production from Blanket is
expected to remain at broadly the same level as we achieved in 2017
and 2018. We therefore expect to produce between 53,000 and 56,000
ounces in 2019. Blanket finished 2018 with adequate mining and
development infrastructure in place to deliver on this target and
we have made a good start to 2019.
"Completion of the Central Shaft is the key to Blanket achieving
its planned production of approximately 80,000 ounces of gold per
annum from 2021 onwards. I expect that sinking work at Central
Shaft will be completed by mid-year after which we will start to
equip the shaft.
"This part of the Central Shaft project is relatively capital
intensive. In light of our significant capital expenditure
commitments, we believe it is prudent to take advantage of the
recent strengthening of the gold price and we have therefore
secured a minimum received gold price of $1,250 per ounce for the 5
months to June 2019 whilst maintaining full upside exposure to the
gold price through a cost-effective option structure. The Central
Shaft project is in the final 18 months of construction; we expect
capital investment on this project to be lower in the second half
of 2019 and to reduce further in 2020 as it nears completion.
Caledonia will continue to monitor the gold price in conjunction
with our projected cash position and review our hedging strategy as
appropriate."
For further information please contact:
Caledonia Mining Corporation Plc
Mark Learmonth Tel: +44 1534 679 800
Maurice Mason Tel: +44 759 078 1139
WH Ireland
Adrian Hadden/Jessica Cave/ Tel: +44 20 7220 1751
James Sinclair-Ford
Blytheweigh
Tim Blythe/Camilla Horsfall/Megan Tel: +44 207 138 3204
Ray
Note: This announcement contains inside information which is
disclosed in accordance with 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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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