Caledonia Mining Corporation PLC Cap and Collar Hedging Contract (6179C)
February 24 2022 - 2:00AM
UK Regulatory
TIDMCMCL
RNS Number : 6179C
Caledonia Mining Corporation PLC
24 February 2022
Caledonia Mining Corporation Plc
Cap and collar hedging contract over a portion of 2022 gold
production
(NYSE AMERICAN: CMCL; AIM: CMCL; VFEX: CMCL)
St Helier, February 24, 2022 - Caledonia Mining Corporation Plc
("Caledonia" or the "Company") has entered into a zero cost
contract to hedge approximately 25% of 2022 target gold production
at Blanket via a cap and collar hedging contract for 20,000 ounces
of gold over a period of 5 months from March to July 2022.
The hedging contract has a cap of $1,940 and a collar of $1,825,
meaning that, for the 4,000 ounces of gold per month for the
period, Caledonia will receive an effective gold price per ounce of
not less than $1,825 or greater than $1,940 and will receive an
effective spot gold price between these two levels.
Commenting on the announcement, Caledonia's Chief Executive
Officer Steve Curtis said:
"Hedging gold production is not an easy decision for a gold
miner as investors usually wish to maximise exposure to gold price
upside. However, given the fact that our capital expenditure
phasing is heavily weighted towards the first half of 2022 as we
ramp up gold production, the board considered it prudent to take
advantage of the current strong gold price to protect the balance
sheet during this phase of higher capital investment with a
five-month hedging arrangement over a portion of our
production."
Caledonia Mining Corporation Plc
Mark Learmonth Tel: +44 1534 679 802
Camilla Horsfall Tel: +44 7817 841793
WH Ireland
Adrian Hadden/ Andrew De Andrade Tel: +44 20 7220 1751
Blytheweigh Financial PR
Tim Blythe/Megan Ray Tel: +44 207 138 3204
3PPB
Patrick Chidley Tel: +1 917 991 7701
Paul Durham Tel: +1 203 940 2538
Curate Public Relations (Zimbabwe)
Debra Tatenda Tel: +263 77802131
Note: This announcement contains inside information which is
disclosed in accordance with the Market Abuse Regulation (EU) No.
596/2014 (" MAR ") as it forms part of UK domestic law by virtue of
the European Union (Withdrawal) Act 2018 and is disclosed in
accordance with the Company's obligations under Article 17 of
MAR.
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END
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