Caledonia Mining Corporation (LON:CMCL) CEO Steve Curtis talks to DirectorsTalk about the release of a positive note by SP Angel on Zimbabwe, how the company were one of the first to indigenise and how it works and the main benefits of operating in Zimbabwe.
Caledonia Mining Corporation is an exploration, development and mining company focused on Southern Africa. Caledonia’s primary asset is a 49% interest in the Blanket Mine in Zimbabwe which produced over 45,500 ounces of gold in 2013 at a cash cost of US$613/oz.
The Blanket gold mine re-started production in April 2009 after a temporary shut-down due to the economic difficulties in Zimbabwe. In late 2010, Blanket successfully completed an expansion project which increased production capacity from 24,000 ounces of gold per annum to 40,000 ounces of gold per annum.
As an indigenised entity, Blanket can implement its long term growth strategy. The Blanket board, which includes representatives of the Indigenous Zimbabwean shareholders, approved a capital investment programme for 2013 and a 4 year growth strategy for 2014 to 2017. This investment programme, which was endorsed by the Caledonia Board, is estimated at US$37 million, will be funded from Blanket’s internally generated cash, and is expected to result in progressive increases in gold production.
Caledonia has a strong, experienced management team and Board of Directors with diverse expertise in gold production, exploration, mine development, finance and marketing. Caledonia’s management team is based in Johannesburg, South Africa.