Caledonia Announces Record Quarterly Production of 16,710 Gold Equivalent Ounces at Blanket Mine

Blanket Mine

Key Highlights

  • Record production of approximately 16,710 ounces
  • 2021 half-year production up 7.8% compared to first half of 2020
  • Declared increased quarterly dividend of US$0.13 cents
  • 89% cumulative increase from the level of 6.875 cents since October 2019

HARARE – Mining, exploration and development company, Caledonia Mining Corporation (Plc (NYSE AMERICAN & AIM: CMCL), has reported record production of approximately 16,710 ounces of gold during the second quarter ended June 30, 2021, at its primary asset, the Blanket Mine located in the south-west of Zimbabwe approximately 15 km west of Gwanda, the provincial capital of Matabeleland South.

This represents an increase of approximately 23.8% on the 13,499 ounces produced in the corresponding quarter of 2020 and up from 13,197 ounces produced during the first quarter of the current year (Q1’21), which was below target.

Cumulative gold produced for the first half of 2021 was 29,907 ounces, approximately 7.8% above the 27,732 ounces produced in the first half of 2020.

The Company maintains its 2021 full-year production guidance of 61,000 to 67,000 ounces setting it on the path to hit the target of 80,000 ounces from 2022.

Commenting on the impressive Q2 output, Steve Curtis, Chief Executive Officer said, “Having got off to a slow start to the year, for production to be 7.8% above the first half of 2020 and 23% ahead of the corresponding quarter is an outstanding achievement and leaves us well placed to meet our full-year guidance.

“During the quarter we also announced that Central Shaft was operational; this has been a huge feat by the team. We are currently working hard to achieve the expansion and we remain on track to hit our 80,000 ounces target in 2022.”

Complementing the improved performance, the Company is rewarding investors with an increased quarterly dividend of US$0.13 cents on each of the Company’s shares.

This is up 8% from the quarterly dividend of US$0.12 cents that was paid in April 2021, and an 89% cumulative increase from the level of 6.875 cents since October 2019.

“With the Central Shaft now in operation, the anticipated combination of rising production and declining capital investment gives us confidence to further increase the dividend payment in addition to providing funding for investment in new projects, including the exploration prospects at Glen Hume and Connemara North, as announced at the end of 2020,” Curtis said.

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