Caledonia Mining Corporation Plc: Update on the operation of the new Solar Plant and electricity supply to Blanket Mine

Rhea-AI Summary

Caledonia Mining Corporation Plc (CMCL) has announced that its 12MWac solar project, operational since November 2022, is exceeding expectations by supplying approximately 27% of the Blanket mine's daily electricity demand. The announcement coincides with improved power supply from the Zimbabwe grid, significantly lowering diesel consumption. In January 2023, diesel usage dropped to 18,000 litres compared to 120,000 litres per month throughout 2022. CEO Mark Learmonth expresses confidence in ongoing reductions in diesel use, supporting the company's investment in solar energy and commitment to its ESG strategy.

Positive

• The solar project generates about 27% of Blanket's daily electricity demand, outperforming initial expectations.
• Significant reduction in diesel consumption from 120,000 litres per month in 2022 to 18,000 litres in January 2023.
• Improved power supply from the Zimbabwe grid enhances production reliability and reduces costs.

Negative

• None.

ST HELIER, Jersey, Feb. 10, 2023 (GLOBE NEWSWIRE) -- Caledonia Mining Corporation Plc (“Caledonia” or the “Company”) (NYSE AMERICAN: CMCL; AIM: CMCL; VFEX: CMCL) is pleased to announce that its 12MWac solar project, which was connected to the Blanket electrical grid in November 2022, is operating better than expected and is generating slightly more power than was anticipated; it currently provides approximately 27 per cent of Blanket's average daily electricity demand.

In recent months there has also been a substantial improvement in the supply of power from the Zimbabwe grid which has substantially reduced the amount of diesel consumed and has reduced the frequency of interruptions to production.

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

“The completion of the solar project coincides with an improvement in the supply of power from the Zimbabwe grid which has substantially reduced the amount of diesel consumed.  As an initial early-stage indicator, in January 2023, Blanket consumed 18,000 litres of diesel, which compares to approximately 120,000 litres per month for the whole of 2022. Whilst we can’t be certain that this quantum of improvement will be fully maintained as the year progresses, we are confident that we will continue to see an ongoing meaningful reduction to our diesel usage month on month, fully justifying our investment in solar power and delivering on our ESG strategy.”

Enquiries:

Caledonia Mining Corporation Plc Mark Learmonth Camilla Horsfall	Tel: +44 1534 679 800 Tel: +44 7817 841 793
Cenkos Securities plc (Nomad and Joint Broker) Adrian Hadden Neil McDonald Pearl Kellie	Tel: +44 207 397 1965 Tel: +44 131 220 9771 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 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

FAQ

What power supply percentage does Caledonia's solar project provide for Blanket in 2023?

Caledonia's solar project provides approximately 27% of Blanket's average daily electricity demand.

How much diesel did Caledonia Mining consume in January 2023?

Caledonia Mining consumed 18,000 litres of diesel in January 2023.

What was the monthly diesel consumption for Caledonia in 2022?

Caledonia's diesel consumption was approximately 120,000 litres per month for the whole of 2022.

When was the solar project connected to the Blanket electrical grid?

The solar project was connected to the Blanket electrical grid in November 2022.