Morning everyone. Ben here - just putting up the placeholder for the first of this week's SCVRs.


Kicking off, here's a write-up by Keelan Cooper here at Stockopedia of the Caledonia Mining and Cenkos Securities results, which were published today...

Caledonia Mining (LON:CMCL)

Share price: 1169.5p (+3.5%)

Shares in issue: 12,000,000

Market cap: £140 million

Zimbabwean focused gold producer and explorer, Caledonia mining, released a strong set of FY 2020 financial results this morning.

Results for the Year ended December 31, 2020

  • Gross revenues reached $100 million.
  • Gross profit of $46.6 million and EBITDA of $43.4 million equating to margins of 47% and 43% respectively.
  • Normalised all-in sustaining costs increased to $946 per ounce ($820 in 2019), but still remain low compared to peers.
  • Adjusted earnings per share of 204 cents.
  • Net cash from operating activities of $30.9 million.
  • Net cash and cash equivalents of $19.1 million (2019: $8.9 million), although this was in part due to a $13 million equity issue in the third quarter of 2020.
  • Total dividend paid of 33.5 cents per share.

Some key operational milestones were reached during the year. The company’s only producing asset, the Blanket Mine, produced a record 57,899 ounces of gold and at higher gold recovery rates. Integral to Calendonia’s future growth at the Blanket Mine has been the development of the Central Shaft, which is expected to commission shortly in Q1 2021. The project has taken 5 years to complete, at a total cost of $67 million, and will now contribute to meaningful production growth in the near future.

Furthermore, Caledonia has secured option agreements for two exploration projects in Zimbabwe on favourable terms. Glen Hume and Connemara North are located in the Gweru mining district and the company now holds the right to explore each property for 15 & 18 months respectively.

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Source: Caledonia Mining FY results 2020 presentation

Steve Curtis, CEO of Caledonia, commented the following on Caledonia’s Full Year results: "Caledonia's immediate strategic focus is to complete the Central Shaft project, which is expected to increase production, reduce operating costs and increase the flexibility to undertake further exploration and development, thereby safeguarding and enhancing Blanket's long-term future. We will also conduct exploration activities at Glen Hume and Connemara North while evaluating further investment opportunities in the gold and…

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