Market's view on Caledonia Min
Published on April 2024
- Stock watchers have highlighted a strong start to 2024 for Blanket with over 17,000 ounces produced in the first quarter, despite fewer production days compared to the previous year, positively impacted by high gold prices.
- Concerns were raised about whether the company has controlled its costs effectively, especially with gold prices remaining high.
- Observation that despite the high gold price, the company’s share price has not reflected this increase, suggesting underlying issues.
- Discussion on the company’s ability to control cash costs below $1000/oz, noting that if managed, the mine could generate significant annual income.
- There is skepticism about the management’s ability to handle finances, especially with potential costly investments in the Bilboes sulphide project, which might not recur.
- Comments on the company’s long-standing stability in Zimbabwe despite political risks, highlighting a consistent record of quarterly dividends over ten years.
- Mention of improvements to local infrastructure like the Sitezi Secondary School and Health Clinic by the company.
- Notes on operational issues at Blanket being resolved, indicating a return to profitability and cash flow, though concerns remain about funding for the Bilboes project.
- Mixed reactions to company announcements (RNS), with some optimism over July’s production figures but overall disappointment in recent performance and acquisitions.