viewCaledonia Mining Corporation PLC

Caledonia Mining hails resilience during coronavrius disruption


  • Caledonia Mining operates the Blanket gold mine in Zimbabwe
  • New central shaft at the mine has been sunk
  • Target is 80,000oz per year by 2022
  • Stake in Blanket now up to 64%
Caledonia Mining Corporation - Caledonia Mining into ramp-up phase as central shaft excavation completes

Quick facts: Caledonia Mining Corporation PLC

Price: 1312.5 GBX

Market: AIM
Market Cap: £159.06 m

How it's doing

In January 2020, Caledonia completed the acquisition of an additional 15% stake to take its holding in the Blanket mine to 64%.

Caledonia produced 14,233 ounces of gold from its Blanket mine in Zimbabwe during the first quarter ended March, up from the 11,948 in the corresponding period a year ago.

Gross revenues were US$23.6mln, a 48% increase on the $15.9mln achieved in the first quarter of 2019.

All-in sustaining costs rang in at US$879 per ounce, down significantly from the 2019 number of US$1,039 per ounce.

The company said the coronavirus (COVID-19) pandemic has had a negligible effect on production and capital projects in the quarter.

Production continued at approximately 93% of target during the three-week lockdown which started in Zimbabwe on March 30, 2020, and has subsequently returned to normal levels. 

All told, production guidance for 2020 remains unchanged at 53,000 to 56,000 ounces.

What the boss says: Leigh Wilson, chairman

"Blanket Mine has continued to operate during the recent regional shut down:

"it has paid its workers, suppliers and the Zimbabwe tax authorities as usual; and it has continued to generate substantial foreign exchange for Zimbabwe.

"Our ability to make this dividend payment whilst at the same time making larger contributions to the fight against [coronavirus] is testament to the resilience of our business"


Inflexion points

  • 45% production growth planned

  • Rising cash generation from 2020

  • All-in-sustaining cost guidance of $810/oz – $850/oz

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