Proactive Investors - Run By Investors For Investors
Why invest in CMCL?
Caledonia Mining Corporation: THE INVESTMENT CASE

Caledonia Mining Corporation on schedule with Blanket ramp up

Caledonia retains operational control of Blanket and ownership of 49% of the mine in Zimbabwe
picture of mine interior
INVESTMENT OVERVIEW: CMCL The Big Picture
New tramming loop has been installed at Blanket

PLC's ( TSE:CAL) Blanket gold mine has been in operation for many years now, and has managed to ride out the complexities of the Zimbabwean political situation relatively unscathed.

In large part that’s due to the indigenisation deal that Caledonia struck some years ago with local businessmen, with its own workers, and with other community groups.

Under the terms of that deal, Caledonia retains operational control of Blanket and ownership of 49% of it.

The terms of sale of the 51% stake stipulated that the company would be paid back out of cash flow from the mine itself, and on very commercial terms.

Accordingly, as with all the best deals, all parties felt that they came out of it well, and the company’s ability to operate in Zimbabwe has never been seriously in jeopardy.

Digging deeper

In recent years the concerns have been more about how to operate Blanket to maximum efficiency.

To that end the company has embarked on a heavy investment programme, the benefits of which are just beginning to show through.

Thus, a new tramming loop has been installed at the 750 metre level, allowing for the more efficient distribution of ore around the underground network of tunnels before it is brought to the surface for processing.

In addition, the company is also working on new shafts to increase the amount of ore it can haul to surface at any one time.

All told, the plan is to boost output in the longer term to more than 80,000 ounces per year by 2021.

Second half of 2017 to be stronger

In July, Caledonia said it expects to meet its gold production target this year through an improved second half performance.

The miner produced approximately 12,522 ounces of gold from the Blanket mine in the three months to June, about the same amount as a year ago.

Over the half year, output rose by 8.5% to 25,316oz, but Caledonia forecast output to rise over the next two quarters.

The target for the year is for production to be between 52,000oz and 57,000oz

View full CMCL profile View Profile

Caledonia Mining Corporation Timeline

Related Articles

Chairs
August 04 2017
The firm has named Tang as its new non-executive chairman and director
diamond-drill-350.jpg
July 26 2017
The company has transformed itself over the last three years through three major transactions
molten gold being poured
October 20 2017
Pan African hopes to be in production at Elikhulu in the final quarter of next year.

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You understand that the Company receives either monetary or securities compensation for our services. We stand to benefit from any volume this write-up may generate.

You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Copyright © personabelovo.ru, 2018. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated.