Caledonia Mining on cutting its all-in costs
AIM and NY listed Caledonia Mining Corporation (CMCL) looks to improved times ahead as it organises its house to better benefit from the recent surge in the price of gold.
One way to lever an improved return from gold is to invest in gold producers. CMCL is a Zimbabwean-focused exploration, development and gold mining company. It owns a 64% stake in the Blanket Mine and 100% stakes in other gold mining claims mines in the area. It's recently said that Q1 output this year was up 6% at 17,050 ounces of the precious metal.
IGTV’s Jeremy Naylor caught up with CMCL chief executive, Mark Learmonth, to discuss the apparent mismatch between the company’s share price and the surge in gold. The discussion touches on the areas the company believes need to be addressed to steer a path back to better returns. The CEO also talks about its London listing, having been picked up in New York to represent part of the Russell 3000 index.
(AI Video Summary)
Increased Q1 output for Caledonia Mining
Caledonia Mining, a Zimbabwe-focused gold producer particularly involved with the Blanket Mine, has seen a 6% increase in Q1 output this year producing 17,050 ounces of gold. CEO Mark Learmonth highlighted the company's return to strong performance with production surpassing expectations amid a high gold price environment. Despite facing challenges in 2023, including higher all-in sustaining costs due to large capital projects and external factors like advisory fees, the company is actively addressing operational efficiencies and investing in renewable energy sources to mitigate power supply issues.
Portfolio expansion
Caledonia is also expanding its portfolio within Zimbabwe, with significant plans for the Bilboes project expecting to substantially increase gold output and aiming for strategic funding to minimise dilution for shareholders. Despite the optimistic outlook, the actual share price does not reflect the potential value, attributed to recent operational challenges and market perceptions.
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