WH Ireland analyst Paul Smith has said this morning about Caledonia Mining production update : “Caledonia today announced its production for 2015 of 42.8koz gold from its Blanket mine in Zimbabwe after a good fourth quarter of 11.5koz (up 11% on Q4 2014 and 6% up on the last quarter), slightly beating our estimate of 42.2koz for the year.
Caledonia forecast that in 2016 it will produce “approximately” 50koz gold as the results of the large capital investment programme in the development of underground infrastructure continue to bear fruit. We keep our own estimate of 51.1koz gold for 2016 unchanged at the present time and will be looking to see the continued increases in production as tonnage of ore (and gold) from the No. 6 Winze area increases and the benefits of the new tramming loop on the 22 level are felt through the entire year.
Caledonia continues to deliver on its production promises and by keeping tight fiscal control can keep its commitment to its dividend despite internally funding the large investment into the Blanket mine.”
Paul Smith