Caledonia Mining reports record 2022 gold production, exceeds guidance

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(Kitco News) - Zimbabwe-focused gold mining company Caledonia Mining (NYSE: CMCL) today announced record production of 80,775 ounces of gold in 2022 which exceeded the top end of the company's guidance and achieved its long-standing production target.

The company said that its 2022 annual production represents a 19.7 per cent increase on the 67,476 ounces produced in 2021, adding that Q4 2022 gold production was 21,049 ounces, a 13.1 per cent increase on the 18,604 ounces produced in Q4 2021.

In 2023, Caledonia Mining expects to produce between 87,500 and 97,000 ounces of gold at all-in sustaining costs of between $1,150 and $1,250 per ounce.

Caledonia also noted that over the last 18 months, the company has built an attractive portfolio of assets with the acquisitions of Bilboes, Motapa and Maligreen.

"Blanket will continue to serve as a solid foundation for this growth, as we look to progress our assets with our long-term goal of becoming a multi asset gold producer," the company said in a statement.

Commenting on the announcement, CEO Mark Learmonth said, "In 2014, Caledonia announced a plan to sink a new shaft (Central Shaft) to 1,200 metres from surface, all funded through internal cash flow, with a long-term target of achieving an annual production rate of 80,000 ounces. I am delighted to announce today that we have now achieved this target, with 2022 annual production of 80,775 ounces - just over the top end of our guidance. This achievement is a huge milestone for the company; it has been a tremendous team effort and I would like to thank all of our employees for their continued hard work.

"Production guidance for 2023 assumes that Blanket will broadly maintain the production rate achieved in 2022.  2023 guidance also includes the estimated production from the small oxides project at Bilboes where mining activity is expected to commence in February, and we expect to extract gold from the heap leach process in March."

Caledonia Mining’s primary asset is the Blanket gold mine in Zimbabwe. The company has also committed to evaluate investment opportunities in Zimbabwe; since November 2021 it has acquired Maligreen, Motapa and Bilboes. The company’s vision is to become a multi asset gold producer.