Caledonia Mining (TSX: CAL; NYSE: CMCL) has agreed to repurchase the participation of Fremiro Investments in its Manta gold mine in Zimbabwe in a business valued at 16.6 million dollars. After completing the transaction, Caledonia will have 64% of Blanket.
Under the terms of the agreement, the two companies will cancel the excellent Caledonia loan of $ 11.46 million from Fremiro. Caledonia will issue Fremiro 727,266 shares worth US $ 7,15 per share, Caledonia closed price no New York Stock Exchange on August 17, 2018. Fremir will have 6.42% of the diluted capital of Caledonia.
Caledonia produced almost 14,000 ounces. Gold in Blanket in the third quarter of 2018
Caledonia produced almost 14,000 ounces. gold in Blanket in the third quarter of 2018, 3% in the same quarter of the previous year but 10% higher than in the second quarter of 2018. The company produced 39,559 oz. Gold in the first three quarters of 2018, a little less than in the first three quarters of 2017.
As a result, the company reduced its 2018 production target from 55,000 to 59,000 oz. gold to 54,000 to 56,000 oz. gold However, he says he remains on the path to achieving its production target of 20,220 oz. gold
The company says lower-than-expected guidance combined with a weak gold price forced it to reduce its adjusted income orientation from $ 1.65 to $ 1.90 per share to $ 1.40 to $ 1.50 per action. The revised income guide is 3% to 12% higher than the company's profit in 2017.
Caledonia acquired the Mina Manta from Kinross Gold (TSX: K; NYSE: KGC) in April 2006. Its interest dropped to 49% after indigenization in 2012 that forced it to sell 51% of its interest to the inhabitants of Zimbabwe , including Fremiro. Fremiro could not afford interest, so that Caledonia lent him the money.
The shares of Caledonia Mining are currently traded at $ 7,19 with a 52-week range of $ 6.80 at $ 12.50. The company has a market capitalization of 72 million dollars.