viewCaledonia Mining Corporation PLC

Caledonia Mining continues to produce gold in Zimbabwe, while lockdown exemption application is processed

Caledonia has built up a strong inventory of spares to sustain it during the coronavirus uncertainty

Caledonia Mining Corporation PLC -

Caledonia Mining Corporation PLC (LON:CMCL)(TSE:CAL) has said that the lockdown in South Africa declared by President Ramaphosa is likely to have knock-on effects for operations at the company’s Blanket gold mine across the border in Zimbabwe although is currently continuing to produce gold.

The supply chain for the procurement of a significant portion of mining consumables and capital equipment comes from South Africa.

A lock-down in Zimbabwe was declared on 27 March, but Blanket is continuing to operate as it has applied for an exemption on the grounds that it is able to operate in a manner that contributes to the management of the spread of the coronavirus.

Caledonia will need to quarantine its employee village and surrounding area and reconfigure its operations to reduce the risk of infections being transmitted amongst its employees in order to qualify for the exemption.

In anticipation of supply chain disruptions arising from the coronavirus, Caledonia has increased the levels of consumable stocks at Blanket in recent weeks. Caledonia estimates that Blanket has adequate critical spares and mining consumables in its inventory to sustain uninterrupted gold production well past the expected duration of the supply interruption including allowing for a period of supply chain and inventory restocking after the end of the South African lockdown on 16 April.

Accordingly, management does not expect that Blanket will be forced to suspend gold production as a result of the disruption in the South African supply chain.

Caledonia had cash on hand, as at March 25 2020, of approximately US$12.5mln.

Cash has been boosted by strong first-quarter production.

Quick facts: Caledonia Mining Corporation PLC

Price: 1317.5 GBX

Market: AIM
Market Cap: £151.79 m

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Caledonia Mining Corporation PLC named herein, including the promotion by the Company of Caledonia Mining Corporation PLC in any Content on the...



Mining Capital turnout 'a good cross-section of industry sentiment'

Alastair Ford looks back on this week's Proactive Investors Mining Capital conference in London. ''The room was full throughout the morning, standing room only at some points throughout the day and a huge amount of interest in the networking room during the breaks''. ''It was...

on 4/5/18

2 min read