Caledonia Mining Corporation Plc: Publication and Highlights of the Feasibility Study for Bilboes Gold Project

Core Viewpoint - Caledonia Mining Corporation has decided to proceed with the Bilboes Gold Project following the completion of a feasibility study, which indicates robust economic viability across various gold price scenarios [1][10]. Economic Analysis - The project demonstrates a positive business case under three gold price scenarios, with an average price of US$2,548/oz yielding a post-tax NPV of US$582 million and an IRR of 32.5% [4][6]. - At a spot price of US$3,648/oz, the post-tax NPV increases to US$1,234 million, with an IRR exceeding 50% [7]. - The project has a payback period of 1.7 years and an all-in sustaining cost (AISC) of US$1,061/oz [6][18]. Mineral Reserves and Resources - Proven and probable mineral reserves are estimated at 1.749 million ounces (Moz) of gold at a grade of 2.26 g/t [5][15]. - Measured and indicated mineral resources total 532,000 ounces at 1.37 g/t, while inferred resources are 984,000 ounces at 1.62 g/t [5][15]. Production Profile - The project plans to process 240,000 tonnes per month for the first six years, reducing to 180,000 tonnes per month thereafter, with a life of mine production of 1.55 Moz over 10.8 years [5][24]. - The first full year of production is expected to yield approximately 200,000 ounces in 2029 [5][24]. Funding Strategy - The peak funding requirement is estimated at US$484 million, with additional needs for interest and working capital totaling approximately US$150 million [8][20]. - The funding strategy aims to minimize equity dilution while maintaining a quarterly dividend of 14 cents per share [20][21]. Project Timeline - The front-end engineering design (FEED) phase will commence immediately, with first production anticipated in late 2028 [12][24]. - Construction is expected to take about two years, followed by a ramp-up period of five months [24]. Community and Economic Impact - The project is expected to significantly benefit Zimbabwe by enhancing its status as a gold destination and contributing to foreign exchange earnings and tax revenues [13][19]. - Caledonia plans to replicate successful community engagement strategies from its Blanket Mine operations [14].