Caledonia Mining Corporation Plc: Blanket Mine Q2 2024 Production
Caledonia Mining announced a strong production performance at its Blanket Mine in Zimbabwe for Q2 2024. The mine produced 20,773 ounces of gold, marking a 19% increase from the 17,436 ounces in Q2 2023. For H1 2024, production reached 37,823 ounces, a 13% rise over the same period in 2023. The company maintains its 2024 gold production guidance at 74,000 to 78,000 ounces. CEO Mark Learmonth expressed satisfaction with the results, emphasizing the company's preparedness to transition into a multi-asset gold producer. The production figures have been verified by Craig James Harvey, a qualified person under relevant regulatory standards.
- Q2 2024 gold production at Blanket Mine increased by 19%, reaching 20,773 ounces.
- H1 2024 gold production rose by 13%, totaling 37,823 ounces.
- Caledonia Mining maintains its 2024 production guidance at 74,000 to 78,000 ounces.
- None.
Insights
Caledonia Mining Corporation's latest production updates for Q2 and H1 2024 present significant implications for stakeholders. The 19% increase in Q2 2024 gold production relative to Q2 2023 and a 13% increase for H1 2024 compared to H1 2023 underscore substantial operational efficiency and growth. This production boost, paired with the company's maintained guidance of 74,000 to 78,000 ounces for the year, indicates strong execution on their production strategy.
For short-term investors, this robust production data could suggest potential for an increase in the company's stock price, reflecting confidence in their operational performance. The direct impact of increased gold production on revenue is straightforward: higher output should logically lead to higher sales and revenue, assuming stable or favorable gold prices.
Long-term investors should consider the broader strategy. The company's statement about becoming a multi-asset gold producer hints at future diversification, potentially reducing risk by not being solely dependent on a single mine. However, this ambition comes with inherent risks, including the allocation of capital for new projects and the uncertainties related to mining operations.
It's also key to keep an eye on external factors such as global gold prices, geopolitical stability in Zimbabwe and regulatory changes. These could significantly impact the company's performance, adding an element of volatility.
The announcement provides a solid foundation for analyzing market positioning and potential competitive advantages. The increase in gold production positions Caledonia favorably in the precious metals market, especially in an environment where gold remains a safe haven for investors.
The consistency in meeting and potentially exceeding production targets enhances the company's reputation for reliability, which can bolster investor confidence and attract new capital. Furthermore, maintaining guidance suggests that Caledonia has a solid understanding of their operational capabilities and market conditions.
From a strategic perspective, Caledonia's focus on becoming a multi-asset producer could diversify its portfolio, making it more resilient against market fluctuations. Investors should monitor how well these strategic plans are communicated and executed, as effective diversification can mitigate risks associated with single-asset dependency.
Additionally, the company's proactive approach in providing transparent and detailed production reports enhances its credibility, an essential factor in securing ongoing investor support.
Robust production continues at Blanket Mine
ST HELIER, Jersey, July 10, 2024 (GLOBE NEWSWIRE) -- Caledonia Mining Corporation Plc (“Caledonia” or “the Company”) (NYSE AMERICAN, AIM and VFEX: CMCL) announces gold production from the Blanket Mine (“Blanket”) in Zimbabwe for the quarter ended June 30, 2024 (“Q2 2024”) and the half year ended June 30, 2024 (“H1 2024”). All production numbers are expressed on a 100 per cent basis and are based on final assays from the refiner.
Production Summary
- Q2 2024 gold production at Blanket was 20,773 ounces, a
19% increase on the 17,436 ounces produced in the second quarter of 2023. - H1 2024 gold production at Blanket was 37,823 ounces, a
13% increase on the 33,472 ounces produced in the first half of 2023. - Caledonia reiterates 2024 gold production guidance at Blanket of 74,000 to 78,000 ounces.1
Mark Learmonth, Chief Executive Officer, said:
"Blanket Mine continues to provide a solid foundation for growth as we prepare to become a multi-asset gold producer. Production in the first half of 2024 was excellent and has exceeded our expectations. We remain on track to hit our annual production target of 74,000 to 78,000 ounces of gold.”
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 Camilla Horsfall | Tel: +44 1534 679 800 Tel: +44 7817 841 793 |
| Cavendish Capital Markets Limited (Nomad and Joint Broker) Adrian Hadden Pearl Kellie | Tel: +44 207 397 1965 Tel: +44 131 220 9775 |
| Panmure Liberum Limited (Joint Broker) Scott Mathieson/Matt Hogg | Tel: +44 20 3100 2000 |
| Camarco, Financial PR (UK) Gordon Poole Julia Tilley Elfie Kent | Tel: +44 20 3757 4980 |
| 3PPB (Financial PR, North America) Patrick Chidley Paul Durham | Tel: +1 917 991 7701 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: 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 achieving Blanket Mine’s annual production forecast.
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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1 Refer to the technical report entitled “NI 43-101 Technical Report on the Blanket Gold Mine, Zimbabwe” with effective date December 31, 2023 prepared by Caledonia Mining Corporation Plc and filed by the Company on SEDAR+ (https://www.sedarplus.ca) on May 15, 2024.
FAQ
What was the Q2 2024 gold production at Blanket Mine?
How much gold did Blanket Mine produce in H1 2024?
What is Caledonia Mining's 2024 gold production guidance?
Who verified the production figures for Caledonia Mining's Blanket Mine?
