Friday, 03 December 2021 08:21 GMT

Caledonia Mining CFO hopes reworked PEA satisfies regulators

(MENAFN- ProactiveInvestors)The chief financial officer of Caledonia Mining (LON:CMCL) Mark Learmonth believes the firm's reworked preliminary economic assessment will appease regulatory body - the Ontario Securities Commission. Caledonia has been working hard to firm up the longer term future of the Blanket gold mine in Zimbabwe. It has modified a preliminary economic assessment 'PEA' for the mine's expansion after the Ontario Securities Commission asked it to consider expansion below the 750 metre level as a standalone project. The original PEA calculated the project economics on the basis of the combined values of the mine plan -  based on the reserves and resources above and below  750 metres. Under the reworked plan which assumes the project is funded from new money rather than existing cashflow the net present value of Blanket stands at US$65 mln while the internal rate of return comes out at an impressive 42%.

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