Caledonia sees huge potential in Zim

Source: Caledonia sees huge potential in Zim | The Herald

Caledonia sees huge potential in Zim
Caledonia Mine

Enacy Mapakame
Victoria Falls Stock Exchange (VFEX) listed Caledonia Mining Corporation Plc says the resources group will continue to evaluate investment opportunities in the country following other acquisitions made in the past year.

Chief executive officer, Mr Steve Curtis, indicated the mining concern sees huge geological potential in the resource rich Zimbabwe.

This comes as many foreign investors have warmed up to President Mnangagwa’s Zimbabwe is open for business mantra.

Last year the group announced the acquisition of Maligreen, one of the more significant exploration opportunities in the country although the firm has decided not to exercise the option to the Glen Hume Mine, open cast mines Connemara North.

This comes as the mining firm is pushing its strategy of becoming a multi- asset gold producer in Zimbabwe.

“Now that the Central Shaft is complete, the company can focus on other areas of its growth strategy, predominately de-risking the business from being a single asset producer.

“Last year we announced the acquisition of Maligreen, one of the more significant exploration opportunities in Zimbabwe.

“We see huge geological potential in Zimbabwe, and we continue to evaluate other investment opportunities in the country,” he said.

Analysts forecast increased earnings performance supported by strong gold production, while also benefiting from its acquisitions and firm commodity prices.

Projected favourable gold prices, stabilising at an average of US$1 600 over the next 12 months is expected to favour Caledonia’s earnings for financial year 2022 (FY22) and going forward.

Caledonia, which is the parent company for Gwanda based gold producer, Blanket Mine, targets production of 73 000 to 80 000 ounces of gold in 2022.

Now, with the listing on the US$ denominated VFEX, Caledonia is expected to further unlock shareholder value while raising capital in foreign currency for expansion programmes.

Meanwhile, Caledonia has announced a quarterly dividend of US14 cents a share for the fourth quarter of 2021 representing a 104 percent increase from the level of US6,875 cents since October 2019.

Commenting on the announcement, Mr Curtis said: “Over the last 10 years Caledonia has built a strong reputation for delivering on its word and rewarding shareholders through growth and dividends.

“In January 2020, we announced our first dividend increase and over the last two years we have more than doubled the dividend while always balancing the importance of returning money to shareholders and investing in the Company’s growth.

“I am very excited with the opportunity that we have to evolve our business, with Blanket Mine as the foundation for our growth.

“This marks a strategic pivot in the future direction of Caledonia as it pursues its strategy to become a multi-asset gold producer.”