Caledonia aims to become multi-asset gold producer in Zimbabwe

VICTORIA Falls Stock Exchange (VFEX)-listed company, Caledonia Mining Corporation Plc injected US$28 million worth of investments in the economy in 2022 through various statutory obligations with the mining house saying the value of contributions will continue to grow as the business develops.

The mining entity said total payments to the Government in taxes in 2022 was US$19,2 million, up from US$16,4 million in the prior year.
In its 2022 Environmental, Social and Governance (ESG) report, chief executive officer, Mr Mark Learmonth said the mining resource has a strong sustainable foundation and attractive growth opportunities in Zimbabwe.

To that end, Caledonia is eyeing consolidating its strategy of becoming a multi-asset gold producer by acquiring several lucrative mining assets.

“Our combined investment in the economy of Zimbabwe based on taxes, dividends, CSR and royalties for 2022 was US$28,396 million. This will continue to grow as the business develops.

“The company has a strong and sustainable foundation and attractive growth opportunities. I look forward to achieving our goal of becoming a multi-asset gold producer in Zimbabwe,” said Mr Learmonth.

The ESG report covers the reporting period 1 January 2022 to 31 December 2022. Operationally, Mr Learmonth highlighted that the period under review marked a turning point for the business as the business hit its long-term target of over 80 000 ounces (oz) of gold per annum.

The resource firm views Zimbabwe as having huge geological potential and the portfolio has an attractive appeal to new assets.

For instance, in 2021 Maligreen project worth US$4 million was acquired from Pan African Mining marking the first step towards becoming a multi-asset gold producer.

US Dollars

It further expanded its footprint by purchasing Motapa Mining Company UK Limited and signed a US$53,2 million agreement to buy Bilboes Gold Limited as part of its expansion drive.

“A year later, we purchased the Motapa project, an asset we consider to be highly prospective and strategically important to our growth ambitions as it is a large exploration property contiguous to the Bilboes project.

“In January 2023, following the satisfaction of conditions precedent, we completed the acquisition of the Bilboes project. “A feasibility study prepared by the vendors indicates the potential for an open-pit gold mine producing an average of 168 000oz per year over a 10-year life of mine,” he noted.

Bilboes Gold is a gold mining entity that was once ranked among the country’s 10 biggest gold producers.

It has produced approximately 288 000 ounces of gold since 1989.

Caledonia has commissioned an updated feasibility study to identify the most judicious way to commercialise Bilboes project.

“As the company becomes a multi-asset business in Zimbabwe, we will build a stronger footprint in the local economy through increased contributions to Government and social investments in communities.”

The ESG report indicates that the firm spent US$64,1 million on suppliers of various products with 53,7 percent being local suppliers. Revenue generated amounted to US$142,1 million up from US$121 million in 2021 with gross profit reaching US$61,82 million from US$54,1 million in the prior year.-chronicle