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Caledonia completes sale of Solar Plant
CMCLCaledonia Mining Plc(CMCL) Newsfilter·2025-04-14 06:00

Core Viewpoint - Caledonia Mining Corporation has successfully completed the sale of its solar plant in Zimbabwe for 22.35million,allowingthecompanytostrengthenitscashpositionandfocusonitscoregoldminingoperations[1][5][6].FinancialSummary−ThesaleofthesolarplantwasfinalizedonApril11,2025,withapre−taxcashconsiderationof22.35 million, allowing the company to strengthen its cash position and focus on its core gold mining operations [1][5][6]. Financial Summary - The sale of the solar plant was finalized on April 11, 2025, with a pre-tax cash consideration of 22.35 million [1]. - Prior to the sale, Caledonia's consolidated net debt was 3.8million,downfrom3.8 million, down from 8.7 million at the end of 2024. After the sale, the pro forma consolidated net cash balance is projected to be 18.6million[4].OperationalImpact−Thesolarplant,whichhasbeenoperationalsinceFebruary2023,hasgeneratedover57,722MWhofpowerandwillcontinuetosupplyenergytoBlanketMineunderanexclusivepowerpurchaseagreement[3][6].−ThesalealignswithCaledonia′sstrategytofocusongoldminingwhileensuringthatBlanketMineretainsaccesstorenewableenergy,meetingapproximately2018.6 million [4]. Operational Impact - The solar plant, which has been operational since February 2023, has generated over 57,722 MWh of power and will continue to supply energy to Blanket Mine under an exclusive power purchase agreement [3][6]. - The sale aligns with Caledonia's strategy to focus on gold mining while ensuring that Blanket Mine retains access to renewable energy, meeting approximately 20% of its daily electricity needs [2][6]. Strategic Context - The decision to sell the solar plant was made following a competitive bidding process, allowing Caledonia to reallocate capital towards growth initiatives in its core business [2]. - The construction of the solar plant was initially financed through a share offering that raised 13 million in 2020 [3].