The company's main asset is a 64% interest in the Blanket gold mine, which is located on the northwest limb of the Gwanda Greenstone Belt in Zimbabwe. In case you haven't read my previous articles on Caledonia, here is a quick overview of the operations. Overview of the operations and the financials Also, the Glen Hume property was impaired, and there have been no updates on the potential purchase of the Isabella-McCays-Bubi mines.Ĭaledonia's valuation has decreased significantly since my previous article but I remain bearish as the prospects for the company now look worse than before. The company aimed to become a 500koz/year gold producer but the latest quarterly report looks unimpressive. In January, I wrote a bearish article on SA about Zimbabwe-focused gold miner Caledonia Mining (NYSE:CMCL). I continue to be bearish and the short borrow fee rate stands at 1.69% as of the time of writing. Reserves at Blanket were just 527koz of gold as of the start of 2020 and Zimbabwe is a terrible mining jurisdiction.Īlso, the Glen Hume property was impaired and there have been no updates on the potential purchase of the Isabella-McCays-Bubi mines. The mine life stretches to 2034, but this is based on inferred resources. The company is on track to boost production at Blanket to 80koz per year by 2022.
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All articles are my opinion - they are not suggestions to buy or sell any securities. Disclosure: I am not a financial adviser. 26, 2021 8:55 AM ETCaledonia Mining Corporation Plc (CMCL)1 Like Revisiting Caledonia Mining - No Developments On M&A And I Remain BearishĪug.
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