Caledonia extols RBZ for timeous payments as direct gold exports resume
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Loading... - Maryanne Too
- 09 May 2023
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Caledonia Mining Corporation Plc has praised the Reserve Bank of Zimbabwe (RBZ) for their timely remittance of payments for gold sales.
The miner has recently resumed direct gold exports to a foreign base refiner, and since listing on the Victoria Falls Stock Exchange and acquiring Bilboes, Caledonia has explored various ways to achieve direct gold exports.
The RBZ subsidiary, Fidelity Gold Refinery (Private) Limited, continues to process unrefined gold on a toll-treatment basis, in compliance with the government's requirements for in-country refining.
This allows Zimbabwean authorities to have full visibility over the gold produced and exported by Caledonia. The exportation of gold is facilitated by FGR, which holds a gold dealing license, and the refined gold is then exported to a foreign refinery for the final refining process and sold on behalf of Caledonia.
Caledonia Plc CEO, Mark Learmonth, praised the RBZ's pragmatic business approach, noting that they have been very dependable in remitting due payments.
He also commended the Zimbabwean authorities for their efforts to resolve commercial issues facing gold producers.
The new marketing arrangement should make it easier for Caledonia to arrange debt facilities with funders outside Zimbabwe to support the construction of new mines in Bilboes, Motapa, and Maligreen.
Overall, the current arrangement has been beneficial for Caledonia, and Learmonth emphasized that this milestone showcases the pragmatic approach of the Zimbabwean authorities in resolving commercial issues.
