Caledonia Mining Completes $22.35m Solar Plant Sale, Strengthens Cash Position
Why we think this is very good
The sale of the solar plant is a positive development for Caledonia, as it unlocks capital for the company's core gold mining operations while maintaining the renewable energy supply for the Blanket Mine. The transaction resulted in a profit and significantly strengthened Caledonia's cash position, providing the company with additional resources to invest in growth.
Key Points
- Caledonia completes $22.35m sale of 12.2MWac solar plant in Zimbabwe
- Sale results in $8.05m profit over $14.3m construction cost
- Caledonia's pro forma consolidated net cash balance is now $18.6m
- Blanket Mine retains exclusive power purchase agreement for renewable energy
Summary
Caledonia Mining has successfully completed the $22.35 million sale of its Zimbabwean subsidiary, Caledonia Mining Services, which owns and operates a 12.2MWac solar plant supplying power to the Blanket Mine. The sale resulted in a profit of $8.05 million over the $14.3 million construction cost, and Caledonia's pro forma consolidated net cash balance is now $18.6 million. Importantly, the company has retained the exclusive power purchase agreement, ensuring the Blanket Mine continues to benefit from the renewable energy source.