Caledonia Mining Corporation outstanding achievement given the challenges faced


Caledonia Mining Corporation plc (LON:CMCL) announced quarterly gold production from the Blanket Mine in Zimbabwe for the quarter ended June 30, 2020.

·    Approximately 13,499 ounces of gold were produced during the Quarter, an increase of approximately 6.2% on the 12,712 ounces produced in the corresponding quarter of 2019.

·    Gold produced for the first half of 2020 was 27,732 ounces approximately 12.5% above the 24,660 ounces produced in the first half of 2019.

·    Caledonia maintains its 2020 full year production guidance of 53,000 to 56,000 ounces and remains on track with progress towards its target of 80,000 ounces by 2022[1].

Commenting on the announcement, Steve Curtis, Caledonia Mining Corporation Chief Executive Officer, said:

“The production of 13,499 ounces in the second quarter is an outstanding achievement given the challenges faced during the quarter as a result of the COVID-19 Pandemic. To have achieved a 6.2% increase on the comparable quarter of 2019 during a period where our workforce and supply chains were disrupted is a performance of which every employee should be justifiably proud. Thankfully the virus has not affected our operations or the broader Zimbabwean gold mining sector too seriously although we remain vigilant.”

“For production to be 12.5% ahead of the corresponding 2019 level at the half year stage leaves us well placed for the full year and on track to meet our full year guidance of 53,000 – 56,000 ounces. This strong performance and high gold prices have ensured that the business remains on a very solid foundation as we prepare for the next phase of our growth with the completion of the central shaft in 2020 and increased production to 80,000 ounces by 2022.”

[1] The projected gold production figures in this news release are explained in the management discussion and analysis (“MD&A”) dated March 17, 2020. Refer to technical report dated 13 February 2018 entitled “National Instrument 43-101 Technical Report on the Blanket Mine, Gwanda Area, Zimbabwe (Updated February 2018), a copy of which was filed by the Company on SEDAR on March 2, 2018 for the key assumptions, parameters, and methods used to estimate the mineral resources and mineral reserves from which planned gold production, as set out in this news release, is to be derived and risks that could materially affect the potential development of the mineral resources or mineral reserves.  Mr Paul Matthews, the Company’s qualified person and Group Mineral Resource Manager, supervised the preparation of the technical information in the technical report and supervised the preparation of the technical information contained in this news release.

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