Caledonia Mining Company Plc: Completion of Equipping Section of Central Shaft NYSE:CMCL

ST HELIER, Jersey, Nov. 30, 2020 (GLOBE NEWSWIRE) — Caledonia Mining Company Plc (“Caledonia” or the “Firm”) (NYSE AMERICAN: CMCL; AIM: CMCL) is happy to announce that the section of totally equipping the Central Shaft from its base to the floor collar is now full and it’s on monitor to be commissioned within the first quarter of 2021. This has been accomplished significantly beneath funds and inside a time-frame to underpin the Firm’s expectation of delivering manufacturing of 80,000 ounces of gold in 2022.

Key options of the Central Shaft venture because the begin on three August 2015 embrace:

• Security: 1,850 fatality free shifts with solely two misplaced time accidents (LTI); 920 shifts since final LTI;
• Prolonged scope: the scope of the Central Shaft venture was prolonged from an preliminary goal depth of 1,089 meters to a closing depth of 1,204 meters;
• Mission is self-funded and is owner-built by Blanket crews with supervision from Sinking Engineering Mining Building;
• Throughout shaft sinking, greater than 1,800 metres of infrastructure improvement was accomplished together with mid-shaft loading;
• Capital price up to now is roughly $60 million, in comparison with preliminary sinking contractor quotes acquired of about $100 million;
• Elevated mine-life: the shaft has prolonged Blanket’s lifetime of mine to the present time horizon of 2034;
• Elevated manufacturing: the Central Shaft is anticipated to extend manufacturing by round 45 per cent from roughly 55,000 ounces of gold in 2019 to the goal fee of 80,000 ounces from 2022;
• Decreased prices: economies of scale and operational efficiencies arising from the Central Shaft are anticipated to scale back the all-in sustaining price per ounce of gold from $855¹ in 2019 to between $700 and $800 per ounce;
• Elevated exploration: the Central Shaft will present entry for additional deep-level exploration which, if profitable, may lengthen Blanket mine life past 2034;
• The erecting and fixing of the headgear is because of be accomplished by the tip of 2020 and commissioning is on monitor for first quarter 2021.

Commenting on information of the completion, Steve Curtis, Chief Govt Officer, mentioned

“The completion of the equipping section is a big milestone for the Firm, and no-one ought to underestimate this achievement. The final 5 years have been a large group effort and we commend our workers for their onerous work and their dedication to security. Shaft sinking is extensively thought to be one of the crucial harmful actions in mining and I’m proud to report that over greater than 5 years the crew achieved 1,85Zero fatality free shifts up to now with solely two LTI and attaining greater than one million LTI free man hours worked because the final LTI.

“We’ve invested roughly $60 million on this venture since we first introduced it in 2015 and it has been proprietor–constructed and totally funded by way of inside cash movement and has been accomplished at a price that’s effectively beneath preliminary quotes acquired.

“Central Shaft is among the largest gold mining funding tasks in Zimbabwe and will likely be transformational to our enterprise: our goal manufacturing is set to extend by 45 per cent to 80,000 ounces by 2022 whereas our long-term all-in sustaining prices are anticipated to drop to $700-$800 per ounce. Central Shaft may even place us to step-up our deep stage exploration which, if profitable may lengthen Blanket’s lifetime of mine, which is at the moment to 2034.

“Over the final 5 years we have now constructed a stable basis for the Firm, we have now a wholesome steadiness sheet, a powerful gold price and a extremely cash generative asset with free cash movement anticipated to extend considerably with the rise in manufacturing. It is a very thrilling time for Caledonia, and I want to take this chance to recognise Dana Roets (Chief Working Officer), Caxton Mangezi (Blanket Mine General Supervisor), Wimpy Nel (Design Engineer), Carel Greeff (Initiatives Supervisor), the late Rodney Voight (Civils Design Engineer), the whole group at Blanket, our technical group in Johannesburg particularly Deon Niemand and the contractors for their excellent efficiency as we take the enterprise into its subsequent chapter.”

____________________________
Mr Dana Roets (B Eng (Min.), M(BA), Pr.Eng., FSAIMM, AMMSA), Chief Working Officer, is the Firm’s certified individual as outlined by Canada’s Nationwide Instrument 43-101 and has accredited any scientific or technical info contained on this information launch.

For additional info please contact:

Notice: This announcement comprises inside info which is disclosed in accordance with the Market Abuse Regulation (EU) No. 596/2014.

Cautionary Notice Regarding Ahead-Wanting Info

Info and statements contained on this information launch that aren’t historic information are “forward-looking info”, “financial outlooks” or “future oriented financial information” (collectively, “forward-looking information”) inside” throughout the which means of relevant securities laws that contain dangers and uncertainties relating, however not restricted to Caledonia’s present expectations, intentions, plans, and beliefs. Ahead-looking info can typically be recognized by forward-looking phrases equivalent to “anticipate”, “believe”, “expect”, “goal”, “plan”, “target”, “intend”, “estimate”, “could”, “should”, “may” and “will” or the unfavourable of those phrases or related phrases suggesting future outcomes, or different expectations, beliefs, plans, targets, assumptions, intentions or statements about future occasions or efficiency. Examples of forward-looking info on this information launch embrace: manufacturing steerage, estimates of future/focused manufacturing charges, and our plans and timing concerning additional exploration and drilling and improvement, development plans, monetary and shareholders returns on funding in development tasks and electrical energy manufacturing/provide to the mine. This forward-looking info relies, partially, on assumptions and elements that may change or show to be incorrect, thus inflicting precise outcomes, efficiency or achievements to be materially completely different from these expressed or implied by forward-looking info. Such elements and assumptions embrace, however aren’t restricted to: failure to ascertain estimated sources and reserves, the grade and restoration of ore which is mined various from estimates, success of future exploration and drilling packages, reliability of drilling, sampling and assay information, assumptions concerning the representativeness of mineralization being inaccurate, success of deliberate metallurgical test-work, capital and working prices various considerably from estimates, delays in acquiring or failures to acquire required governmental, environmental or different venture approvals, inflation, adjustments in exchange charges, fluctuations in commodity costs, delays within the improvement of tasks, the completion of development tasks, the proposed advantages from development tasks and different elements.

To the extent any forward-looking info herein constitutes a monetary outlook or future oriented monetary info, any such assertion is made as of the date hereof and included herein to offer potential buyers with an understanding of the Firm’s development plans and assumptions. Safety holders, potential safety holders and different potential buyers are cautioned that such info may not be applicable for different functions and ought to be conscious that these statements are topic to identified and unknown dangers, uncertainties and different elements that would trigger precise outcomes to vary materially from these advised by the forward-looking statements. Such elements embrace, however aren’t restricted to: dangers regarding estimates of mineral reserves and mineral sources proving to be inaccurate, fluctuations in gold price, dangers and hazards related to the enterprise of mineral exploration, improvement and mining, dangers regarding the credit score worthiness or monetary situation of suppliers, refiners, contractors and different events with whom the Firm does enterprise; insufficient insurance coverage, or lack of ability to acquire insurance coverage, to cowl these dangers and hazards, worker relations; relationships with and claims by native communities and indigenous populations; political danger; dangers associated to pure disasters, terrorism, civil unrest, public well being considerations (together with well being epidemics or outbreaks of communicable illnesses such because the coronavirus (COVID-19)); availability and rising prices related to mining inputs and labour; the speculative nature of mineral exploration and improvement, together with the dangers of acquiring or sustaining mandatory licenses and permits, diminishing portions or grades of mineral reserves as mining happens; international monetary situation, the precise outcomes of present exploration actions, adjustments to conclusions of financial evaluations, and adjustments in venture parameters to cope with unanticipated financial or different elements, dangers of elevated capital and working prices, environmental, security or regulatory dangers, expropriation, the Firm’s title to properties together with possession thereof, elevated competitors within the mining trade for properties, gear, certified personnel and their prices, dangers regarding the uncertainty of timing of occasions together with focused manufacturing fee improve, development exercise and forex fluctuations. Safety holders, potential safety holders and different potential buyers are cautioned that the assumptions used within the preparation of such forward-looking info, though thought of affordable on the time of preparation, may show to be imprecise and, accordingly, they need to to not place undue reliance on such forward-looking info. By its nature, forward-looking info entails quite a few assumptions, inherent dangers and uncertainties, each basic and particular, that contribute to the chance that the predictions, forecasts, projections and varied future occasions is not going to happen. Caledonia undertakes no obligation to replace publicly or in any other case revise any forward-looking info whether or not on account of new info, future occasions or different such elements which have an effect on this info, besides as required by legislation.

____________________________
¹ $855 per ounce excludes $1.93 million of revenue which was acquired as a authorities grant by way of the export credit score incentive scheme which has subsequently been discontinued; seek advice from part 10 of the MD&A broadcast on March 18, 2019 for the calculation of all-in sustaining price per ounce. Forecast prices for 2022 take no account of any revenue which may come up if the export credit score incentive scheme (or related preparations) is re-introduced.