REG - Caledonia Mining Crp - Q2 2023 Production Update

Caledonia MiningAnnouncement

17/07/2023 07:00

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RNS Number : 1475G  Caledonia Mining Corporation PLC  17 July 2023

Caledonia Mining Corporation Plc

Q2 2023 Production Update

(NYSE AMERICAN: CMCL; AIM: CMCL; VFEX: CMCL)

 

St Helier, July 17, 2023 - Caledonia Mining Corporation Plc ("Caledonia" or
the "Company") announces quarterly gold production from the Blanket Mine
("Blanket") and from the Bilboes Oxide Project ("Bilboes Oxides") in Zimbabwe
for the quarter ended June 30, 2023 (the "Quarter") and the half year ended
June 30, 2023. All production numbers are expressed on a 100 per cent basis
and are based on final assays from the refiner.

 

                 Q2 2022                Q1 2023           Q2 2023                        H1 2022  H1 2023  Change (H1 2022 to H1 2023)

                 (Comparable quarter)   (Prior Quarter)   (Recently Completed Quarter)
 Blanket         20,091                 16,036            17,436                         38,606   33,472   -13.3%
 Bilboes Oxides  -                      105               1,076                          -        1,181    n/a
 Total           20,091                 16,141            18,512                         38,606   34,653   -10.2%

 

Blanket

 

Production at Blanket in the Quarter was 17,436 ounces, representing an 8.7
per cent increase on the 16,036 ounces produced in the first quarter of 2023.
Gold produced at Blanket in the first six months of 2023 was 33,472 ounces,
compared to 38,606 ounces produced in the first half year of 2022.

 

Production at Blanket in the Quarter, although improved from the previous
quarter, was still below expectations. This was due to several factors which
impacted the implementation of the mine plan in certain mining areas. These
factors included a high level of missed blasts and errors in blasting accuracy
which contributed to inadequate face advances. Management has focused
intensively on these problem areas and production in late June and in July has
shown a marked improvement.

 

Production for the first six months of 2023 was lower than the first six
months of 2022 due to the issues arising in the Quarter (as noted above) in
addition to difficulties encountered in the prior quarter which, as previously
advised, included several mechanical breakdowns.

 

In light of the improved performance in late June and early July, management
re-iterates production guidance for Blanket for the year to December 31, 2023
of between 75,000 and 80,000 ounces 1  (#_ftn1) .
 

 

Bilboes

 

1,076 ounces of gold were produced from the Bilboes Oxides in the Quarter,
showing an increase from the 105 ounces produced in the first quarter of 2023.
There was no production at the Bilboes Oxides in 2022.

 

The Bilboes Oxides was intended as a small-scale, low-margin, short-term
project which was primarily justified by the benefits of pre-stripping in
anticipation of the development of the larger sulphide project.

 

The Company has previously withdrawn guidance for the Bilboes Oxides and, in
the absence of a reasonable prospect of it making an overall cash
contribution, the project will be returned to care and maintenance with effect
from October 1, 2023.

 

Mining and metallurgical processing will continue at Bilboes Oxides until the
end of September; thereafter leaching of material that has already been
deposited on the leach pad will continue. Oxide mining and processing will
resume when the stripping of the waste for the sulphide project commences.
 

 

Commenting on the announcement, Mark Learmonth, Chief Executive Officer, said:

 

"After an encouraging start to the second quarter at Blanket, production was
below expectations in May and the first half of June.

 

"Management interventions to identify and address the problems appear to have
been successful and production improved substantially in late June and early
July. Production in the first week of July was at a record level and was
almost 400 ounces better than planned. Whilst we have much work to do to make
up for the production shortfall from the first six months, we are confident
that we will do so and we therefore re-iterate our production guidance for
2023 of between 75,000 and 80,000 ounces of gold.

 

"The outlook for the Bilboes Oxides is insufficiently certain unless it is
done in conjunction with the waste stripping for the sulphide project.
Accordingly, we have decided to return this project to care and maintenance
until the work commences on the larger sulphide project when the remaining
oxide material will be mined and processed alongside the sulphide ore. This
outcome has no bearing on the quality of the much larger sulphide project
which was the sole reason for acquiring Bilboes."

 

This news release has been approved by Mr Dana Roets (B Eng (Min.), MBA,
Pr.Eng., FSAIMM, AMMSA), Chief Operating Officer, the Company's qualified
person as defined by Canada's National Instrument 43-101 - Standards of
Disclosure for Mineral Projects ("NI 43-101").

 

 Caledonia Mining Corporation Plc

 Mark Learmonth                                             Tel: +44 1534 679 802

 Camilla Horsfall                                           Tel: +44 7817 841793
 Cenkos Securities plc (Nomad and Joint Broker)

 Adrian Hadden                                              Tel: +44 207 397 1965

 Neil McDonald                                              Tel: +44 131 220 9771

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

 Scott Mathieson/Kane Collings                              Tel: +44 20 3100 2000
 BlytheRay Financial PR

 Tim Blythe/Megan Ray                                       Tel: +44 207 138 3204
 3PPB

 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)

 Dzika Dhana

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

 

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.

 

 1  (#_ftnref1) 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

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