REG - Caledonia Mining Crp - Cap and Collar Hedging Contract

Caledonia MiningAnnouncement

24/02/2022 07:00

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RNS Number : 6179C  Caledonia Mining Corporation PLC  24 February 2022

Caledonia Mining Corporation Plc

Cap and collar hedging contract over a portion of 2022 gold production

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

 

 

St Helier, February 24, 2022 - Caledonia Mining Corporation Plc ("Caledonia"
or the "Company") has entered into a zero cost contract to hedge approximately
25% of 2022 target gold production at Blanket via a cap and collar hedging
contract for 20,000 ounces of gold over a period of 5 months from March to
July 2022.

 

The hedging contract has a cap of $1,940 and a collar of $1,825, meaning that,
for the 4,000 ounces of gold per month for the period, Caledonia will receive
an effective gold price per ounce of not less than $1,825 or greater than
$1,940 and will receive an effective spot gold price between these two levels.

 

Commenting on the announcement, Caledonia's Chief Executive Officer Steve
Curtis said:

 

"Hedging gold production is not an easy decision for a gold miner as investors
usually wish to maximise exposure to gold price upside. However, given the
fact that our capital expenditure phasing is heavily weighted towards the
first half of 2022 as we ramp up gold production, the board considered it
prudent to take advantage of the current strong gold price to protect the
balance sheet during this phase of higher capital investment with a five-month
hedging arrangement over a portion of our production."

 

 

 

 Caledonia Mining Corporation Plc

 Mark Learmonth                      Tel: +44 1534 679 802

 Camilla Horsfall                    Tel: +44 7817 841793
 WH Ireland

 Adrian Hadden/ Andrew De Andrade    Tel: +44 20 7220 1751
 Blytheweigh 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

 

Note: This announcement contains inside information which is disclosed in
accordance with 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.

 

 

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