- The Company said its 12 MG solar project is producing more than anticipated
- The project is providing approximately 27% to Blanket’s average daily electricity demand
- Diesel consumption month on month decreased to 80000 litres in January 2023 from 120000 litres in 2022
Harare- Vfex-listed mining outfit, Caledonia Mining Corporation says its latest investment in a 12-megawatt solar project is already paying off as it is producing more than anticipated electricity. This is set to accelerate production in a country hit by erratic power supplies.
The 12 MW solar project which was connected to the Blanket electrical grid in November 2022 is operating better than expected and currently providing approximately 27% of Blanket's average daily electricity demand.
The Company is expecting to hit a record gold production of 97 000 ounces in FY2023 bolstered by the acquisition of Bilboes for US$65.7 million, a deal capable of positioning it as Zimbabwe’s biggest gold producer. Ore production from the Bilboes oxides project is expected to start in mid-February with expectations to recover gold from the heap leach in March.
However, against the latest solar project investment which is going to offset power challenges and reduce costs, the Company is set to even beat its FY production prospects.
The pie-chat below shows the Company’s gold production guidance in 2023 in ounces
In January 2023 alone, Blanket consumed 18,000 litres of diesel down from approximately 120,000 litres per month for the whole of last year.
“Caledonia Mining Corporation Plc (“Caledonia” or the “Company”) is pleased to announce that its 12MWac solar project, which was connected to the Blanket electrical grid in November 2022, is operating better than expected and is generating slightly more power than was anticipated; it currently provides approximately 27 per cent of Blanket's average daily electricity demand,” the Company said in a press release.
“Whilst we can’t be certain that this quantum of improvement will be fully maintained as the year progresses, we are confident that we will continue to see an ongoing meaningful reduction to our diesel usage month on month, fully justifying our investment in solar power and delivering on our ESG strategy,” the Company added.
In its latest FY’2022 report, Caledonia reported a record gold production both on the first quarterly for FY2023 and for the full year ended 31 December 2022. The group posted a record annual gold production of 80,775 ounces for the full year ended 31 December 2022 from 67,476 koz ounces produced in the full year to December 2021. The latest gold output beat the Group’s forecast of 80 000 ounces predicted by the Group in 2014 and 2022 respectively.
Capital expenditure at Blanket in 2023 is projected at US$9.6 million in respect of a new tailings facility (reflecting tightened regulatory requirements) and a further US$9.8 million of deep-level capital development so that operations can be maintained in future years.
The Group expects that in 2023, approximately US$2 million will be incurred in the preparation of a revised feasibility study for the larger sulphide project at Bilboes with the cost of the projected capital expenditure for the Group expected to be met from operating cashflows and in-country borrowings.
