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Caledonia Mining looks very underrated, says SP Angel
By Giles Gwinnett January 09 2014, 11:55am



With a 10% improvement in gold production expected in 2014 and
low ratings, Caledonia Mining (LON:CMCL, CVE:CAL) looks "very
underrated," reckons broker SP Angel.

It followed a production update from the miner on Thursday, which
showed production from the Blanket mine in Zimbabwe in
Q4 of last year was "in line with expecations".

In all, 11,417 ounces of gold were produced during the three months -
a 3.4% decrease on gold produced in the final three months of 2012.

Total production of the yellow metal in the year was 45,517 ounces, which
was 3.4% more than the production guidance of 44,000 ounces.

The firm is targeting 48,000 ounces in 2014.

The firm's president and chief executive Stefan Hayden, said:
"The underground development that is required to achieve the
projected increase in gold production to 48,000 ounces in 2014
has been completed and I look forward to Blanket delivering this
increased level of production in 2014".

Mining anlalyst John Meyer, of SP Angel, said:
"The company declared its first quarterly dividend of US$0.015
this week and also saw an improvement in all
in cash costs at US$999/oz.

"Over a nine month period the company has also paid out
US$5.94m in dividends as part of its compliance with
the Zimbabwean indigenisation policy."

Meyer said that with a 10% improvement expected in gold production
next year and low ratings with a price to earnings ratio
of three times, Caledonia looked very underrated.

He said the firm was "likely to be reflecting market aversion
to Zimbabwean country risk".

Caledonia shares edged up 1.10% to stand at
46 pence each on Thursday.

Caledonia Mining Corp. Declares First Quarterly Dividend -


TORONTO, ONTARIO--(Marketwired - Jan. 7, 2014) -

Caledonia Mining Corporation (TSX:CAL)(OTCQX:CALVF)(AIM:CMCL) -

Further to the November 25, 2013 announcement in respect of
Caledonia Mining Corporation's ("Caledonia" or the "Company")
dividend policy, Caledonia is pleased to announce that the Board
of Directors has declared a dividend of one and one half cents
($0.015) on each of the Corporation's common shares issued and
outstanding as of 5:00 p.m. Toronto local time on the Record Date,
being January 22, 2014.
The ex-dividend date will be January 20, 2014. Dividend cheques
will be mailed on January 31, 2014.

Shareholders who are registered in the United States of America and
the United Kingdom will be paid in US Dollar and Sterling
respectively.
The US Dollar and Sterling dividend payments will be calculated
using the relevant Bank of Canada exchange rates at noon on the
Record Date and will be after deduction of Canadian withholding
tax and any other taxes that may apply.

This dividend is an eligible dividend for the purposes of the
Income Tax Act (Canada).

Caledonia's Dividend Policy

Caledonia's long term strategy to maximize shareholder value
includes a quarterly dividend policy.
In 2014, the Company intends to pay an annual aggregate dividend
of 6 Canadian cents per common share,
payable on a quarterly basis.

About Caledonia Mining

Caledonia is a mining, exploration and development company focused
on Southern Africa.
Following the implementation of indigenisation in Zimbabwe,
Caledonia's primary asset is a 49% interest in an operating
gold mine in Zimbabwe ("Blanket").

Caledonia's shares are listed in Canada on the Toronto Stock
Exchange as "CAL", on London's AIM as "CMCL" andblue are also traded
on the American OTCQX as "CALVF".

Caledonia is debt-free and at September 30, 2013 had gross cash of
over $25m blueoutside Zimbabwe. Blanket mine is a low-cost producer:
in the quarter ended September 30, 2013, Blanket's on-mine costs
were US$554 per ounce of gold produced, its all-in sustaining cost
was US$873 per ounce of gold and its all-in cost (which includes
the investment in expansion projects) was US$999 per ounce.

Investment continues at Blanket with the objective of increasing
production to 48,000 ounces of gold in 2014 and
52,000 ounces of gold in 2015.

Blanket also continues to make substantial investments in its
exploration and development projects as a result of which
gold production may, in due course,
increase above 52,000 ounces per annum.

Cautionary Note Concerning Forward-Looking Information

Information and statements contained in this news release that are
not historical facts are "forward-looking information" within any
forward-looking information whether as a result of new
information, future events or other such factors which affect this
information, except as required by law. There is no guarantee that
Caledonia will maintain the Dividend Policy.

http://www.caledoniamining.com/pdfs/01072014.pdf

Caledonia Mining Corporation
Mark Learmonth
[phone]
[e-mail]

Numis
John Prior/Jamie Loughborough/ James Black
[phone]

Blythe Weigh
Tim Blythe/Halimah Hussein/Camilla Horsfall
[phone]

WH Ireland
Adrian Hadden/Nick Field
[phone]

http://www.caledoniamining.com

http://web.tmxmoney.com/article.php?newsid=64916668&qm_symbol=CAL



http://www.brrmedia.co.uk/event/119251/



http://www.caledoniamining.com/pdfs/CALPres-12042013.pdf
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