Caledonia starts exporting gold produced in Zimbabwe

Caledonia Mining has begun selling gold produced at Zimbabwe's Blanket Mine directly to a refiner outside of the southern African country. 
The miner has been exploring several options for direct gold export since its first public offering on the Victoria Falls Stock Exchange and the completion of the Bilboes acquisition.
It said that unrefined gold is still being processed on a toll-treatment basis at Fidelity Gold Refinery, a subsidiary of the Reserve Bank of Zimbabwe, in accordance with Zimbabwean government requirements for in-country refining; and to provide Zimbabwean authorities with full visibility over the gold produced and exported by Caledonia. 
The refined gold held by FGR is exported to a refinery outside Zimbabwe, the receiving foreign refinery undertakes the final refining process and the gold is sold on behalf of Caledonia. 
Caledonia receives gold sales profits immediately into its Zimbabwe bank account within a few days of delivery to the final refinery. 
This agreement in respect of Blanket Mine production conforms with current requirements to pay a 5% royalty, and Blanket continues to earn 75% of its revenues in US dollars and the remainder in local currency.
"This new arrangement should be seen in the context of Caledonia's planned expansion in Zimbabwe, initially at Bilboes and thereafter at Motapa and Maligreen: this new marketing arrangement should make it easier for Caledonia to arrange debt facilities with funders outside Zimbabwe which may be used to support the construction of the new mines," said company chief executive Mark Learmonth.

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished