Caledonia's Blanket gold mine, in Zimbabwe
London- and TSX-listed Caledonia Mining Corporation expects its Blanket mine, in Zimbabwe, to suffer some knock-on effects as a result of the three-week national lockdown in South Africa to curb the spread of Covid-19.
The company expects knock-on effects on the mine owing to many of its mining consumables and capital equipment being supplied from South Africa.
However, Caledonia is confident that the mine can manage the effects of the lockdown without interruption to its gold production.
In anticipation of supply chain disruptions arising from Covid-19, Caledonia has already increased levels of consumable stocks at Blanket in recent weeks.
The company says the mine should have adequate stocks of spares and consumables to sustain gold production well past the duration of the lockdown, as well as for a period of restocking afterwards.
Should a similar lockdown measure be declared in Zimbabwe, Caledonia would enter a situation like that with a strong balance sheet, with cash on hand of about $12.5-million.
The miner has already taken active measures to help minimise the risk of infection for its employees in Zimbabwe.