REG - Caledonia Mining Crp - Q1 Production Update

Caledonia MiningAnnouncement

24/04/2023 07:00

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RNS Number : 1237X  Caledonia Mining Corporation PLC  24 April 2023

Caledonia Mining Corporation Plc

Q1 Production Update

(NYSE AMERICAN, AIM and VFEX: CMCL)

St Helier, April 24, 2023 - Caledonia Mining Corporation Plc ("Caledonia" or
the "Company") announces gold production from the Blanket Mine in Zimbabwe
("Blanket") and the Bilboes oxides project in Zimbabwe for the quarter ended
31 March 2023 ("Q1 2023" or the "Quarter"). All production numbers are
expressed on a 100 per cent basis and are based on the final assay at the
refiners.

Quarterly gold production at Blanket Mine was 16,036 ounces, 13 per cent lower
than the 18,515 ounces produced in the first quarter of 2022. Production was
lower than last year due to several individually insignificant mechanical
breakdowns and logistical issues which have now been resolved and production
in the early part of April 2023 has been better than expected.

 

Management re-iterates production guidance for Blanket for the year to
December 31, 2023 of between 75,000 and 80,000 ounces of gold 1  (#_ftn1) .

 

Bilboes commenced production of gold from oxides derived from pre-stripping
works in the last few days of the Quarter, producing 105 ounces of gold.
Commencement of oxide production at Bilboes has been slower than anticipated,
having been adversely affected by inconsistent grades, mechanical breakdowns
and the poor availability of spare parts and alternative equipment.

 

As highlighted in the production guidance dated January 13, 2023, the on-mine
cost/oz of Bilboes oxide production was anticipated to be $1,200-1,320 and is
hence a relatively low margin activity which is primarily justified by the
parallel benefit of pre-stripping in anticipation of the development of the
Bilboes sulphide project. The Company is reviewing the initial evidence of
this activity given some of the initial challenges and relative to the larger
sulphide project, for which a feasibility study is being updated. Accordingly,
going forward, we will report actual production achieved each quarter at the
oxides project as part of the pre-stripping activities and, accordingly, have
withdrawn guidance on the low-margin oxide production.

 

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

"Gold production at Blanket is usually lower in the first quarter of each year
and increases in the following quarters.  This trend is in evidence this
year, albeit production in the first quarter of 2023 was below our target due
to a series of issues including equipment failures and logistical issues.
These issues have been resolved and production to date in April has been
higher than expected.

"The small-scale low margin oxide operation at Bilboes is effectively a
pre-stripping exercise for the larger sulphide project in respect of which we
have commenced work on an updated feasibility study.  The oxide project was
adversely affected by the breakdown of contractor-provided drill-rigs which
are used for evaluation drilling and the limited availability in Zimbabwe of
spare parts or alternative equipment.

"In light of the foregoing, we reiterate production guidance for 2023 of
between 75,000 and 80,000 ounces of gold from Blanket.

"We expect to publish further operating information and the financial results
for the Quarter on or about May 15, 2023."

Enquiries:

 Caledonia Mining Corporation Plc

 Mark Learmonth                                             Tel: +44 1534 679 800

 Camilla Horsfall                                           Tel: +44 7817 841 793
 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 (UK)

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

 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

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.

 

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; 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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