REG - Caledonia Mining Crp - Blanket Mine FY 2023 Production and 2024 Guidance

Caledonia MiningAnnouncement

12/01/2024 07:00

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RNS Number : 4620Z  Caledonia Mining Corporation PLC  12 January 2024

Caledonia Mining Corporation Plc

Blanket Mine Q4 and FY 2023 Production and 2024 Guidance

 

Stable production at Blanket with continued focus on expansion

 

(NYSE AMERICAN, AIM and VFEX: CMCL)

St Helier, January 12, 2024 - Caledonia Mining Corporation
Plc ("Caledonia" or the "Company") announces Blanket Mine ("Blanket")
production for the quarter and year ended December 31, 2023.  The Company
also provides guidance for the year to December 31, 2024 in respect of
production, costs and capital expenditure. All production numbers are
expressed on a 100 per cent basis and based on final assays from the refiner.

 

Mark Learmonth, Chief Executive Officer, said:

"I am pleased that, after a challenging first half, we successfully met
production guidance for the year, producing 75,416 gold ounces. Our 2024
guidance of 74,000 to 78,000 ounces assumes that Blanket will broadly maintain
the production rate achieved in 2023 and reflects the prudent decision to
suspend mining in lower margin areas which include lower grades and volumes,
and higher costs.

"Our significant investment in Blanket over the past seven years and
completion of the Central Shaft has nearly doubled production, extended the
mine life and allowed the restart of underground exploration in 2023; in July
we announced that the Eroica zone persists to depth and grades are
significantly higher than previously thought. We continue to progress with the
underground exploration programme and we expect to publish further exploration
results in the first quarter of 2024 and a revised resource statement in the
following quarter.

 

"Our wider capital expenditure programme continues to focus on unlocking value
and delivering our multi-asset growth pipeline in Zimbabwe with Motapa and
Bilboes, whilst maintaining a disciplined focus on cost and capital
allocation. We continue to progress our feasibility studies for the Bilboes
sulphide project with a view to determining the best option for Caledonia
stakeholders, and I look forward to providing an update in due course."

Production Summary and 2024 Guidance

·    Annual gold production at Blanket of 75,416 oz in 2023, in line with
guidance

·    Quarterly gold production at Blanket of 20,172 oz in Q4 2023

·    2024 gold production guidance at Blanket of 74,000 to 78,000oz 1 

·   Budgeted capital expenditure for the group in 2024 is $34.4m, which
includes planned exploration at Motapa and further work on the Bilboes
feasibility studies

·    On-mine cost guidance at Blanket of between $870 and $970/oz

·    All-in sustaining cost guidance of between $1,370 and $1,470/oz

 

Anticipated group capital expenditure of $34.4m includes approximately $20m of
sustaining investment (which is included in all-in sustaining cost guidance)
and $14.4m of expansion expenditure, which includes investment in a new
tailings storage facility with a life of approximately 12 years and further
underground development. Expansion expenditure also includes $2m on
preliminary exploration at Motapa and $3.5m on further work on the Bilboes
feasibility studies.

 

On-mine costs are expected to be consistent with costs incurred in 2023.

 

Caledonia continues to work on the feasibility studies in respect of the
Bilboes sulphide project to determine the optimal implementation strategy for
the project.  This work includes updating the existing feasibility study for
a project producing approximately 170,000oz of gold per annum and work on an
alternative phased approach to the project.

 

Craig James Harvey, MGSSA, MAIG, Caledonia Vice President, Technical Services,
has reviewed and approved the scientific and technical information contained
in this news release. Craig James Harvey is a "Qualified Person" as defined by
each of (i) the Canadian Securities Administrators' National Instrument 43-101
- Standards of Disclosure for Mineral Projects and (ii) sub-part 1300 of
Regulation S-K of the U.S. Securities Act.

Enquiries:

 Caledonia Mining Corporation Plc

 Mark Learmonth                                              Tel: +44 1534 679 800

 Camilla Horsfall                                            Tel: +44 7817 841 793
 Cavendish Capital Markets Limited (Nomad and Joint Broker)

 Adrian Hadden                                               Tel: +44 207 397 1965

 Pearl Kellie                                                Tel: +44 131 220 9775
 Liberum Capital Limited (Joint Broker)

 Scott Mathieson/Kane Collings                               Tel: +44 20 3100 2000
 Camarco, Financial PR (UK)

 Gordon Poole                                                Tel: +44 20 3757 4980

 Julia Tilley

 Elfie Kent
 3PPB (Financial PR, North America)

 Patrick Chidley                                             Tel: +1 917 991 7701

 Paul Durham                                                 Tel: +1 203 940 2538
 Curate Public Relations (Zimbabwe)

 Debra Tatenda                                               Tel: +263 77802131
 IH Securities (Private) Limited (VFEX Sponsor - Zimbabwe)

 Lloyd Mlotshwa                                              Tel: +263 (242) 745 119/33/39

 

________
  1  Refer to the technical report entitled "NI 43-101 Technical Report on the Blanket Gold Mine, Zimbabwe" with effective date September 1, 2022 prepared by Minxcon (Pty) Ltd filed by the Company on SEDAR (www.sedar.com) on March 13, 2023

 

Note: The information contained within this announcement is deemed by the
Company to constitute inside information under 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.

 

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. The forward-looking information
contained in this news release 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: the successful implementation of mine plans,
the establishment of estimated resources and reserves, the grade and recovery
of minerals which are mined varying from estimates, success of future
exploration and drilling programs, reliability of drilling, sampling and assay
data, the representativeness of mineralization being accurate, success of
planned metallurgical test-work, capital availability and accuracy of
estimated operating costs, obtaining required governmental, environmental or
other project approvals, inflation, changes in exchange rates, fluctuations in
commodity prices, delays in the development of projects and Caledonia's
experience of project development in Zimbabwe and other factors.

 

To the extent any forward-looking information herein constitutes a financial
outlook or future oriented financial information, any such statement is made
as of the date hereof and included herein to provide prospective investors
with an understanding of the Company's plans and assumptions. 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; risks
related to natural disasters, terrorism, civil unrest, public health concerns
(including health epidemics or outbreaks of communicable diseases such as the
coronavirus (COVID-19)); 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.  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 news release is not an offer of the shares of Caledonia for sale in the
United States or elsewhere. This news release shall not constitute an offer to
sell or the solicitation of an offer to buy, nor shall there be any sale of
the shares of Caledonia, in any province, state or jurisdiction in which such
offer, solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of such province, state or
jurisdiction.

 

 

 

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