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Caledonia Mining (CMCL)

Business description

Caledonia Mining mines gold at its main operating asset, the 49%-owned Blanket gold mine in southern Zimbabwe. It is also progressing its understanding of a number of promising satellite projects close to Blanket.

Solid start, expansion on track, yields 8%

Update | Mining | 13/05/2015

The first quarter of 2015 has provided Caledonia with a solid footing to progress towards its FY15 production and expansion goals. Production is in line with budget, and expansion underway and firmly on track (with the tramming loop estimated to be ready a few weeks earlier than planned). We reiterate our forecasts and stress that Caledonia is a lowest-quartile AISC African gold miner with significant cash flow-funded growth due to start coming through in early 2016. A 6c dividend (equating to an 8% yield, twice the FTSE Mining Index average) is currently payable quarterly, with cash flow at current gold prices making a similar dividend in 2016 look likely.

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Stock data

Market cap.£65.9m
Last close620.000p
High / Low (52 weeks)702.5p / 415.0p
Stock market listingLN, CN
Forecast net cash (US$m)14.9
Forecast gearing ratio (%)N/A
TeamResources - Mining
SectorMining

Price performance

%1m3m12m
Actual(8.5)0.425.9
Relative *(8.3)(4.7)21.4

* % Relative to local index

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