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Cap and Color Hedging Agreement on Part of Gold Production in 2022, The Canadian Business Journal

St. Helia, Jersey, February 24, 2022 (GLOBE NEWSWIRE) — Caledonia Mining Corporation Plc (“Caledonia” or “Company”) (NYSE AMERICAN: CMCL; AIM: CMCL; VFEX: CMCL) has signed a zero-cost contract. For the five months from March to July 2022, a cap-and-color hedging agreement will hedge approximately 25% of 2022’s target gold production with 20,000 ounces of gold.

Hedge contracts are capped at $ 1,940 and collars are $ 1,825. That is, Caledonia will receive a valid gold price of $ 1,825 or more or $ 1,940 or more per ounce for 4,000 ounces of gold per month for that period. Effective spot gold price between these two levels.

Steve Curtis, CEO of Caledonia, commented on the announcement, saying:

“Hedging gold production is not an easy decision for gold miners, as investors usually want to maximize their exposure to gold prices. However, as gold production increases, equipment Given that tiered investment adjustments will weigh heavily in the first half of 2022, the Board considers it wise to take advantage of current strong gold prices to protect the balance sheet at this high level. Capital investment to hedge part of production for 5 months. “

Caledonia Mining Corporation Plc
Mark Reamance
Camilla Horsefall
Tel: +44 1534 679 802
Tel: +44 7817 841793
WH Ireland
Adrian Hadden / Andrew de Andrade
Tel: +44 20 7220 1751
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3PPB
Patrick Chidley
Paul Durham
Tel: +1 917 991 7701
Tel: +1 203 940 2538
Curated public relations (Zimbabwe)
Debra Tender
Tel: +263 77802131

Note: This announcement contains inside information disclosed in accordance with Market Abuse Regulation (EU) No. 596/2014. (“”March“) Because it constitutes part of UK domestic law under the European Union (Withdrawal) Act 2018 and is disclosed in accordance with our obligations under Article 17 of the MAR.


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Cap and Color Hedging Agreement on Part of Gold Production in 2022, The Canadian Business Journal

Source link Cap and Color Hedging Agreement on Part of Gold Production in 2022, The Canadian Business Journal

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