“Caledonia Mining LON:CMCL is well advanced with its major internally-funded expansion at the Blanket mine in Zimbabwe. By the end of the year increased production from areas within new development will be producing more ounces at a lower cost and helping Caledonia build its cash position. Construction and price risk of the expansion reduces throughout the year especially with the current recovery in the gold price. The company is debt free and continues to pay a dividend. The mine is fully indigenised in Zimbabwe and has been operating for over 100 years – 10 of which have been under Caledonia’s management. We believe that the Zimbabwe risk has been overplayed considering the operating history demonstrated by Caledonia and the company is valued at only half the level of its African gold mining peers on most financial multiples. Our DCF (NPV17.5) shows considerable value in Blanket for Caledonia and with much upside expected from deeper modern exploration now there is more development at depth. We maintain our Buy stance and increase our Target price.” says WH Ireland analyst Paul Smith.
Precious metals rally as U.S. dollar extends losses
21st December 2022
Gold prices climbed more than 1% to their highest levels in a week on Tuesday and other precious metals also rallied on the back of a sliding dollar, as markets remained focused on the Federal Reserve’s