Southern Africa-focused exploration and development company Caledonia Mining Corporation has entered into a six-month cap and collar hedge with a financial counterparty over 15 000 oz of production, using a collar value of $1 050/oz and a cap value of $1 080/oz. The hedge would provide Caledonia with greater certainty in terms of its cash flow in the period to July 2016, by which time the company expected that operating cash flows at Blanket mine, in Zimbabwe, would benefit from the projected increase in gold production.
