Caledonia Mining Corporation (CMCL)

[eom7]

Caledonia Mining - Best quarterly production ever
Yet again Caledonia (CMCL) released an impressive set of operational results. In Q312, the Blanket Mine produced 12,918oz of gold, 12% higher than in Q212 (11,560oz) at cash costs of US$508/oz, 7% lower than Q212 (US$547/oz). Indeed this was the Blanket’s highest quarterly production rate since opening in 1906. Net cash flow from operations (before capex) was C$12.4m (vs C$8.6m in Q212). An exceptional charge was recorded of C$14.1m as CMCL vendor facilitated the sale of 41% of the Blanket Mine to Indigenous Zimbabweans, resulting in an attributable net loss after tax of US$7.2m. CMCL’s cash and cash equivalents increased 34% to C$24.6m (from C$18.3m at end Q212).
Caledonia Mining mines gold at its main operating asset, the Blanket Gold Mine, in southern Zimbabwe. It also holds large-scale mining licences for base metals (primarily copper and cobalt) at its Nama project in Zambia.

Edison Investment Research
Email: [e-mail]
Web: www.edisoninvestmentresearch.co.uk