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TORONTO Stock Exchange-listed Caledonia Mining Corporation has welcomed the recent move by Zimbabwe’s sole gold refiner Fidelity Printers and Refiners Limited to amend its pricing and payment terms for its Blanket gold mine in Gwanda.Fidelity Printers amended pricing and payment terms, which apply to the Blanket Mine, from a discount on gold sales of 1.5 percent to 1.25 per cent.
Caledonia chief executive officer Steve Curtis said the development would enhance the mine’s cost efficiency in gold sales.
Pricing and payment terms adjustment is one of the government’s measures aimed at enhancing the viability of local gold producers following an earlier reduction in the royalty rate from seven per cent to five per cent in October last year.
“The company welcomes all encouraging movements from the Zimbabwean government towards further supporting the nation’s mining industry, and, Fidelity’s announcement on Tuesday will also improve Caledonia’s cost efficiency in future gold sales.”
Caledonia owns 49 percent of the gold mine and has unveiled plans to increase investment to $70 million at Blanket Mine in the next five years aimed at increasing output by up to 75,000 ounces and creating 400 additional jobs by 2021.
The mining conglomerate’s revised investment plan and production projections (2015 to 2021) issued late last year indicates that Blanket Mine remains the company’s cash cow despite the adverse economic conditions affecting the sector.
Online Reporter