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Gold & silver

Caledonia Mining’s Bilboes acquisition a boost for investor confidence - broker says

Gold production will quadruple if deal goes through

Following Caledonia Mining’s offer to buy the Zimbabwe-based gold project Bilboes for US$53mln, equities analysts at Liberum have reiterated their buy-side sentiment for the AIM-listed corporation.

“The Bilboes acquisition could, in a single stroke, potentially see Caledonia realising its ambition of becoming a >200koz/year multi-asset producer,” said Liberum.

However, the conditional agreement is contingent on a number of conditions that the Jersey-headquartered company is willing to walk away from “if key conditions not met”.

CMCL was up 0.57% on Thursday July 21.