2023-04-01 23:19:15 ET
Summary
- The company beat its 2022 guidance as the Blanket gold mine produced 80,775 ounces of gold while AISC dropped to $878 per ounce.
- However, net cash and cash equivalents slumped to just $1.5 million in December and Isabella-McCays-Bubi is a technically challenging project with peak funding of $250 million.
- In my view, Caledonia Mining won’t be able to put this project into commercial production without shelving its dividend and launching a large capital increase.
- I think that risk-averse investors should avoid CMCL stock.
For further details see:
Caledonia Mining: Solid 2022 Results But Major Issues Ahead