Caledonia Mining on cutting its all-in costs
AIM and NY listed Caledonia Mining Corporation (CMCL) looks to improved times ahead as it organises its house to better benefit from the recent surge in the price of gold.
One way to lever an improved return from gold is to invest in gold producers. CMCL is a Zimbabwean-focused exploration, development and gold mining company. It owns a 64% stake in the Blanket Mine and 100% stakes in other gold mining claims mines in the area. It's recently said that Q1 output this year was up 6% at 17,050 ounces of the precious metal.
IGTV’s Jeremy Naylor caught up with CMCL chief executive, Mark Learmonth, to discuss the apparent mismatch between the company’s share price and the surge in gold. The discussion touches on the areas the company believes need to be addressed to steer a path back to better returns. The CEO also talks about its London listing, having been picked up in New York to represent part of the Russell 3000 index.
(AI Video Summary)
Increased Q1 output for Caledonia Mining
Caledonia Mining, a Zimbabwe-focused gold producer particularly involved with the Blanket Mine, has seen a 6% increase in Q1 output this year producing 17,050 ounces of gold. CEO Mark Learmonth highlighted the company's return to strong performance with production surpassing expectations amid a high gold price environment. Despite facing challenges in 2023, including higher all-in sustaining costs due to large capital projects and external factors like advisory fees, the company is actively addressing operational efficiencies and investing in renewable energy sources to mitigate power supply issues.
Portfolio expansion
Caledonia is also expanding its portfolio within Zimbabwe, with significant plans for the Bilboes project expecting to substantially increase gold output and aiming for strategic funding to minimise dilution for shareholders. Despite the optimistic outlook, the actual share price does not reflect the potential value, attributed to recent operational challenges and market perceptions.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
React to volatility on commodity markets
Trade commodity futures, as well as 27 commodity markets with no fixed expiries.1
- Wide range of popular and niche metals, energies and softs
- Spreads from 0.3 pts on Spot Gold, 2 pts on Spot Silver and 2.8 pts on Oil
- View continuous charting, backdated for up to five years
1In the case of all DFBs, there is a fixed expiry at some point in the future.
See opportunity on a commodity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See opportunity on a commodity?
Don’t miss your chance. Upgrade to a live account to take advantage.
- Analyse and deal seamlessly on fast, intuitive charts
- Get spreads from just 0.3 points on Spot Gold
- See and react to breaking news in-platform
See opportunity on a commodity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
