UPDATE: Caledonia Mining raises GBP8.7 million through share placing

(Alliance News) - Caledonia Mining Corp PLC on Friday said it has raised GBP8.7 million, before ...

Alliance News 24 March, 2023 | 1:54PM
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(Alliance News) - Caledonia Mining Corp PLC on Friday said it has raised GBP8.7 million, before expenses, through a placing announced earlier in the day.

The Zimbabwe-focused gold producer said the placing received strong support from new and existing institutional investors.

A total of 781,749 shares have been placed at a price of GBP11.15 each. The placing price represents a 13% discount to the company's closing share price on Thursday of 1,285.00 pence.

Shares in Caledonia were down 11% at 1,150.00p on Friday afternoon in London.

Caledonia said the proceeds of the fundraise, together with the company's existing cash reserves and future cash to be generated from its ownership of the Blanket Mine and from the Bilboes oxide operation, will strengthen its balance sheet. It will provide it with working capital flexibility to accelerate planned work at the three new gold projects it is currently undertaking in Zimbabwe.

Chief Executive Mark Learmonth said: "This modest fund raise allows us to accelerate progress on our very attractive package of exploration and development assets in Zimbabwe. In addition, I am pleased to see a range of institutional investors who support Caledonia's long-term vision join the share register."

It is expected that a Zimbabwe placing will remain open until March 31. The Zimbabwe placing aims to raise GBP2.4 million at the same pricing price.

Earlier on Friday, Caledonia posted a pretax profit of USD39.6 million in 2022, up 4.2% from GBP38.0 million in 2021, as revenue rose by 17% to USD142.0 million from USD121.3 million.

Caledonia Mining said it produced 80,775 ounces of gold in 2022, compared to 67,476 ounces in 2021. Annual production at the Blanket mine in south west Zimbabwe was a record, the company said.

Caledonia guided 2023 gold production between 87,500 and 97,000 ounces.

By Heather Rydings, Alliance News senior economics reporter

Comments and questions to newsroom@alliancenews.com

Copyright 2023 Alliance News Ltd. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Caledonia Mining Corp PLC 830.00 GBX 0.61 -
Caledonia Mining Corp PLC 11.09 USD 3.94 -

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