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Oliver Kazunga, Senior Business Reporter
CALEDONIA Mining Corporation Plc is targeting between 73 000 and 80 000 ounces of gold this year underpinned by the commissioning of the Central Shaft sinking project at its Blanket Mine in Gwanda, Matabeleland South province.

The mining group, whose flagship in Zimbabwe is Blanket Gold Mine, commissioned the US$67 million Central Shaft project in March last year after the project commenced in February 2015.

In a statement, the mining group said following the completion of the Central Shaft project last year, focus was now on other areas spelt out in its growth strategy where priority was on moving the business from a single asset to a multi-asset gold producer.

“The company targets production of 73 000 to 80 000 ounces of gold in 2022,” it said.

In the nine months to September 30, 2021, Caledonia’s output stood at 48 872oz, showing a 14 percent growth trajectory on the 42 887oz produced in the corresponding period in 2020.

The mining group, which is yet to release annual production figures for last year, pegged its output figures for 2021 at between 65 000 and 67 000oz.

The group’s chief executive officer, Mr Steve Curtis, was quoted as saying: “Now that the Central Shaft is complete the company can focus on other areas of its growth strategy, predominately de-risking the business from being a single asset producer.

“Last year we announced the acquisition of Maligreen, one of the more significant exploration opportunities in Zimbabwe.”

In November 2022, Caledonia announced the filing of a technical report, which among others, summarises the geological setting, mineralisation, and metallurgical work on the Maligreen gold project in the Midlands province.

The mining group has said it was acquiring Maligreen gold project from Pan African Mining to the tune of US$4 million.

“We see huge geological potential in Zimbabwe, and we continue to evaluate other investment opportunities in the country.

“I am very excited with the opportunity that we have to evolve our business, with Blanket Mine as the foundation for our growth.

“This marks a strategic pivot in the future direction of Caledonia as it pursues its strategy to become a multi-asset gold producer,” said Mr Curtis.

In the fourth quarter ended December 31, 2021, Caledonia declared a quarterly dividend of US$0,14 on each of the company’s shares.

The latest dividend declaration reflects a 104 percent increase from the level of 6,875 cents since October 2019.

“Over the last 10 years Caledonia has built a strong reputation for delivering on its word and rewarding shareholders through growth and dividends,” said Mr Curtis.

“In January 2020, we announced our first dividend increase and over the last two years we have more than doubled the dividend while always balancing the importance of returning money to shareholders and investing in the Company’s growth,” he said. — -@KazungaOliver