Caledonia Mining tackles 2023 challenges with optimism for 2024 as it maintains dividend

–News Direct–

Caledonia Mining Corporation PLC (AIM:CMCL, NYSE-A:CMCL) chief executive Mark Learmonth tells Proactive's Stephen Gunnion the company faced a challenging 2023, primarily due to poor production in the first half of the year at its core asset, the Blanket Mine in Zimbabwe, and an underperformance in a small-scale oxide project. However, the latter half of the year saw substantial improvement in Blanket's production.

The company also encountered increased costs, notably in labour and electricity, along with one-off administrative expenses, which have been addressed. To mitigate labour costs, Caledonia initiated more efficient timing systems for workforce management, particularly for their new, larger, and lighter shaft operations. For electricity, the company plans to reduce consumption and has already made strides by substituting diesel usage with a solar project.

Due to improving cash flows, Learmonth said Caledonia maintained its quarterly dividend at 14 cents.

The underground exploration program at Blanket resumed last January, showing promising drill results that led to extending the mines life considerably, from 2034 to 2041. Learmonth said this extension will be further supported by an upcoming new resource statement. Moreover, Caledonia is progressing with an updated feasibility study on the Bilboes sulphide project, aiming to publish it in the coming months.

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View source version on newsdirect.com: https://newsdirect.com/news/caledonia-mining-tackles-2023-challenges-with-optimism-for-2024-as-it-maintains-dividend-474868449

Caledonia Mining Corporation PLC

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