Caledonia to benefit from higher Zim Export Credit Incentive
JOHANNESBURG (miningweekly.com) – Exploration and development company Caledonia Mining expects to receive up to an additional $5.1-million in income this year, following an increase to 10%, from the previous 2.5%, in Zimbabwe’s Export Credit Incentive (ECI).
The ECI increase was implemented in February.
Caledonia, which owns a 49% interest in the Blanket gold mine, in Zimbabwe, has already received funds commensurate with the higher ECI for gold produced in February.
The company, whose equities are listed on the TSX, NYSE American and with depositary interests in the shares trading on London’s AIM, on Wednesday said the incremental revenue is likely to have a material positive impact on its forecast earnings per share (EPS) for the year, with the previously guided EPS forecast of between 130c and 150c based on an ECI of 2.5%.
With the increased ECI, Caledonia’s EPS for this year are expected to be between 165c and 190c.
"The increase in the ECI from 2.5% to 10% is a further significant step by the Zimbabwean government to boost investment and production in the gold mining sector. It is very pleasing to see the government delivering on previous policy statements to promote investment in the sector,” said Caledonia CEO Steve Curtis.
He added that, as a substantial investor in and producer of gold in Zimbabwe, Caledonia and its fellow shareholders in Blanket are a beneficiary of this and other recent policy changes as the company invests to grow production at Blanket to 80 000 oz by 2021.
“As the business environment in Zimbabwe continues to improve we look forward to evaluating further opportunities to grow production,” Curtis noted.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
The SAIMM started as a learned society in 1894 after the invention of the cyanide process that saved the South African gold mining industry of the...
VISIT SHOWROOM
Multotec, recognised industry leaders in metallurgy and process engineering help mining houses across the world process minerals more efficiently,...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
