REG - Caledonia Mining Crp - Results for the Quarter ended June 30, 2024
12/08/2024 07:00
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RNS Number : 9854Z Caledonia Mining Corporation PLC 12 August 2024
Caledonia Mining Corporation Plc
Results for the Quarter ended June 30, 2024
Details of Investor Presentation
(NYSE AMERICAN: CMCL; AIM: CMCL; VFEX: CMCL)
August 12, 2024: Caledonia Mining Corporation Plc ("Caledonia" or "the
Company") announces its operating and financial results for the quarter ended
June 30, 2024 (the "Quarter"). Further information on the financial and
operating results for the Quarter and the six months ended June 30, 2024 can
be found in the management discussion and analysis ("MD&A") and the
unaudited financial statements which are available on the Company's website
and on SEDAR+.
Financial Highlights for the Quarter
· Gross revenues of $50.1 million compared to $37.0 million in the
second quarter of 2023 ("Q2 2023") due to higher gold production and a higher
gold price.
· Gross profit of $22.9 million, a 109.8% increase from $10.9 million
in Q2 2023, due to both higher gold revenue and lower production costs.
· EBITDA (excluding depreciation and net foreign exchange gains and
losses) of $22.5 million in the Quarter (Q2 2023: $9.6 million) 1 .
· Blanket Mine ("Blanket") on-mine cost per ounce of $906 (Q2 2023:
$915).
· Consolidated all-in sustaining cost ("AISC") decreased by 7.7% to
$1,253 per ounce (Q2 2023: $1,357 per ounce), due to the lower on-mine cost
per ounce offset by higher sustaining capital expenditure and increased
administrative expenses.
· Group net cash inflow from operating activities of $19.1 million in
the Quarter (Q2 2023: $2.2 million outflow).
· Net cash and cash equivalents in the Quarter increased by $12.8
million to negative $1.4 million.
Operating Highlights for the Quarter
· 20,773 ounces of gold were produced from Blanket (Q2 2023: 17,436
ounces).
· Publication of preliminary economic assessment ("PEA") for the gold
sulphide project at Bilboes (the "Bilboes Sulphide Project") on June 3, 2024
suggests a yield of approximately 1.5 million ounces of gold, over a 10-year
life of mine, at an all-in sustaining cost of $968 per ounce.
· On May 15, 2024 Caledonia announced updated mineral reserves and
resources estimates, including a 106% increase in Blanket's mineral reserves
and a 63% increase in measured and indicated mineral resources pursuant to
Canada's National Instrument 43-101 and an increase in Blanket's life of mine
to 2034, based on the updated mineral reserves estimate. Management believes
that the inferred mineral resources may, based on past successful conversion
rates, further extend the life of mine past 2040.
Dividend
· A dividend of 14 cents per share was paid in April 2024 (for Q1
2024) and again in July 2024 (for Q2 2024).
· To streamline board processes, future dividends are expected to be
declared at the same time as the publication of quarterly results (i.e.
mid-March, May, August, and November). This will mean that the Q3 2024
dividend, if approved by the board, will be declared in mid-November rather
than at the start of October.
· This change relates only to the timing of future dividends and does
not denote any change in the Company's dividend policy.
· The board will continue to consider the dividend as appropriate in
line with other investment opportunities and its prudent approach to risk
management.
Outlook
· Caledonia is on track to achieve production at Blanket within its
pre-disclosed guidance range of 74,000 to 78,000 ounces for 2024 2 .
· The group is progressing the new feasibility study on the Bilboes
Sulphide Project, which is expected to be delivered during the first quarter
of 2025.
· The Company continues to progress exploration activities at Motapa.
Chief Executive Officer, Mark Learmonth, said:
"This has been an excellent quarter, during which profitability benefitted
from higher gold production, a higher gold price and lower costs per ounce.
With today's results, we remain on track to achieve our production and cost
guidance for the year.
"I was delighted that the 2023 drilling campaign resulted in a significant
increase to Blanket's mineral resources and mineral reserves estimates as well
as an increase in Blanket's life of mine. A 10-year mine life, based on
reserves, indicates the robustness of the orebodies at Blanket. Management
anticipates that Blanket's mine life should extend past 2040 given past
successful conversion of inferred mineral resources.
"During the Quarter, the board took the decision to proceed with the
single-phase development option for the Bilboes Sulphide Project. The results
of the PEA indicate production of 1.5 million ounces of gold over a 10-year
life of mine at an all-in sustaining cost of $968 per ounce. As such, Bilboes
has the potential to almost triple Caledonia's gold production to over 200,000
ounces per annum, in combination with production from Blanket.
"In May, we were delighted to welcome James Mufara as Chief Operating Officer.
James joins us at a pivotal moment in Caledonia's development and the team is
already benefiting from his wealth of experience.
"Caledonia remains well positioned to deliver continued returns to
shareholders. I am very excited by the opportunity we have to evolve our
business, which we believe will generate significant long term shareholder
value."
Caledonia will host an online investor presentation and Q&A session on
August 12, 2024 at 14:00 London Time
When: Aug 12, 2024 02:00 PM London
Topic: Q2 2024 Results Call for Investors
Register in advance for this webinar:
https://caledoniamining.zoom.us/webinar/register/WN_6nZkgdqIQ4SXIdf7a_CLxg
(https://caledoniamining.zoom.us/webinar/register/WN_6nZkgdqIQ4SXIdf7a_CLxg)
Enquiries:
Caledonia Mining Corporation Plc
Mark Learmonth Tel: +44 1534 679 800
Camilla Horsfall Tel: +44 7817 841 793
Cavendish Capital Markets Limited (Nomad and Joint Broker)
Adrian Hadden
Pearl Kellie Tel: +44 207 397 1965
Tel: +44 131 220 9775
Panmure Liberum Limited (Joint Broker)
Scott Mathieson Tel: +44 20 3100 2000
Matt Hogg
Camarco, Financial PR (UK)
Gordon Poole Tel: +44 20 3757 4980
Julia Tilley
Elfie Kent
3PPB (Financial PR, North America)
Patrick Chidley Tel: +1 917 991 7701
Paul Durham Tel: +1 203 940 2538
Curate Public Relations (Zimbabwe)
Debra Tatenda Tel: +263 77802131
IH Securities (Private) Limited (VFEX Sponsor - Zimbabwe)
Lloyd Mlotshwa Tel: +263 (242) 745 119/33/39
Craig James Harvey, MGSSA, MAIG, Caledonia Vice President, Technical Services,
has reviewed and approved the scientific and technical information contained
in this news release. Craig James Harvey is a "Qualified Person" as defined by
each of (i) the Canadian Securities Administrators' National Instrument 43-101
- Standards of Disclosure for Mineral Projects and (ii) sub-part 1300 of
Regulation S-K of the U.S. Securities Act.
Note:
This announcement contains inside information which is disclosed in accordance
with the Market Abuse Regulation (EU) No. 596/2014 ("MAR") as it forms part of
UK domestic law by virtue of the European Union (Withdrawal) Act 2018 and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.
Cautionary Note Concerning Forward-Looking Information
Information and statements contained in this news release that are not
historical facts are "forward-looking information" within the meaning of
applicable securities legislation that involve risks and uncertainties
relating, but not limited, to Caledonia's current expectations, intentions,
plans, and beliefs. Forward-looking information can often be identified by
forward-looking words such as "anticipate", "believe", "expect", "goal",
"plan", "target", "intend", "estimate", "could", "should", "may" and "will" or
the negative of these terms or similar words suggesting future outcomes, or
other expectations, beliefs, plans, objectives, assumptions, intentions or
statements about future events or performance. Examples of forward-looking
information in this news release include: production and cost guidance,
estimates of future/targeted production rates, our plans and timing regarding
further exploration and drilling and development, the development of the
Bilboes Sulphide Project and the results of the PEA, and the continuation of
dividend payments. This forward-looking information is based, in part, on
assumptions and factors that may change or prove to be incorrect, thus causing
actual results, performance or achievements to be materially different from
those expressed or implied by forward-looking information. Such factors and
assumptions include, but are not limited to: failure to establish estimated
resources and reserves, the grade and recovery of ore which is mined varying
from estimates, success of future exploration and drilling programs,
reliability of drilling, sampling and assay data, assumptions regarding the
representativeness of mineralization being inaccurate, success of planned
metallurgical test-work, capital and operating costs varying significantly
from estimates, delays in obtaining or failures to obtain required
governmental, environmental or other project approvals, inflation, changes in
exchange rates, fluctuations in commodity prices, delays in the development of
projects and other factors.
Security holders, potential security holders and other prospective investors
should be aware that these statements are subject to known and unknown risks,
uncertainties and other factors that could cause actual results to differ
materially from those suggested by the forward-looking statements. Such
factors include, but are not limited to: risks relating to estimates of
mineral reserves and mineral resources proving to be inaccurate, fluctuations
in gold price, risks and hazards associated with the business of mineral
exploration, development and mining, risks relating to the credit worthiness
or financial condition of suppliers, refiners and other parties with whom the
Company does business; inadequate insurance, or inability to obtain insurance,
to cover these risks and hazards, employee relations; relationships with and
claims by local communities and indigenous populations; political risk; risks
related to natural disasters, terrorism, civil unrest, public health concerns
(including health epidemics or outbreaks of communicable diseases such as the
coronavirus (COVID-19)); availability and increasing costs associated with
mining inputs and labour; the speculative nature of mineral exploration and
development, including the risks of obtaining or maintaining necessary
licenses and permits, diminishing quantities or grades of mineral reserves as
mining occurs; global financial condition, the actual results of current
exploration activities, changes to conclusions of economic evaluations, and
changes in project parameters to deal with unanticipated economic or other
factors, risks of increased capital and operating costs, environmental, safety
or regulatory risks, expropriation, the Company's title to properties
including ownership thereof, increased competition in the mining industry for
properties, equipment, qualified personnel and their costs, risks relating to
the uncertainty of timing of events including targeted production rate
increase and currency fluctuations. Security holders, potential security
holders and other prospective investors are cautioned not to place undue
reliance on forward-looking information. By its nature, forward-looking
information involves numerous assumptions, inherent risks and uncertainties,
both general and specific, that contribute to the possibility that the
predictions, forecasts, projections and various future events will not occur.
Caledonia undertakes no obligation to update publicly or otherwise revise
any forward-looking information whether as a result of new information, future
events or other such factors which affect this information, except as required
by law.
This news release is not an offer of the shares of Caledonia for sale in the
United States or elsewhere. This news release shall not constitute an offer to
sell or the solicitation of an offer to buy, nor shall there be any sale of
the shares of Caledonia, in any province, state or jurisdiction in which such
offer, solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of such province, state or
jurisdiction.
Condensed Consolidated Statements of profit or loss and other comprehensive
income (Unaudited)
($'000's)
3 Months ended June 30 6 Months ended June 30
2024 2023 2024 2023
Revenue 50,107 37,031 88,635 66,466
Royalty (2,475) (1,963) (4,409) (3,443)
Production costs (20,460) (20,726) (39,420) (40,576)
Depreciation (4,239) (3,409) (8,058) (5,664)
Gross profit 22,933 10,933 36,748 16,783
Net foreign exchange loss (2,014) (3,610) (6,153) (2,077)
Administrative expenses (3,664) (3,183) (6,275) (9,122)
Net derivative financial instrument expenses (174) (54) (476) (488)
Equity-settled share-based expense (305) (221) (506) (331)
Cash-settled share-based expense (4) 9 (57) (271)
Other expenses (664) (1,461) (1,264) (2,099)
Other income 185 168 349 186
Operating profit 16,293 2,581 22,366 2,581
Net finance costs (794) (1,057) (1,520) (1,824)
Profit before tax 15,499 1,524 20,846 757
Tax expense (5,151) (1,273) (7,681) (4,775)
Profit (loss) for the period 10,348 251 13,165 (4,018)
Other comprehensive income
Items that are or may be reclassified to profit or loss
Exchange differences on translation of foreign operations 178 (330) 34 (699)
Total comprehensive income for the period 10,526 (79) 13,199 (4,717)
Profit (loss) attributable to:
Owners of the Company 8,429 (513) 10,560 (5,542)
Non-controlling interests 1,919 764 2,605 1,524
Profit (loss) for the period 10,348 251 13,165 (4,018)
Total comprehensive income attributable to:
Owners of the Company 8,607 (843) 10,594 (6,241)
Non-controlling interests 1,919 764 2,605 1,524
Total comprehensive income for the period 10,526 (79) 13,199 (4,717)
Earnings (loss) per share ($)
Basic earnings (loss) per share 0.43 (0.01) 0.53 (0.31)
Diluted earnings (loss) per share 0.43 (0.01) 0.53 (0.31)
Adjusted earnings (loss) per share ($)
Basic 0.51 0.10 0.78 (0.17)
Dividends paid per share ($) 0.14 0.14 0.28 0.28
Condensed Consolidated Statements of Financial Position (Unaudited)
($'000's) As at Jun 30 Dec 31
2024 2023
Total non-current assets 275,743 274,074
Income tax receivable 274 1,120
Inventories 20,401 20,304
Derivative financial assets 20 88
Trade and other receivables 7,882 9,952
Prepayments 5,287 2,538
Cash and cash equivalents 15,412 6,708
Assets held for sale 13,484 13,519
Total assets 338,503 328,303
Total non-current liabilities 25,280 23,978
Cash-settled share-based payments - short term portion 454 920
Income tax payable 4,152 10
Lease liabilities - short term portion 114 167
Loan note instruments - short term portion 855 665
Trade and other payables 18,803 20,503
Overdraft and term loans 16,778 17,740
Liabilities associated with assets held for sale 93 128
Total liabilities 66,529 64,111
Total equity 271,974 264,192
Total equity and liabilities 338,503 328,303
Condensed Consolidated Statements of Cash Flows (Unaudited)
($'000's)
3 months ended June 30 6 months ended June 30
2024 2023 2024 2023
Cash inflow from operations 20,988 2 27,523 666
Interest received 3 4 9 9
Finance costs paid (710) (1,231) (1,283) (1,431)
Tax paid (1,195) (1,001) (2,276) (2,346)
Net cash inflow (outflow) from operating activities 19,086 (2,226) 23,973 (3,102)
Cash flows used in investing activities
Acquisition of property, plant and equipment (6,897) (6,009) (10,638) (10,602)
Acquisition of exploration and evaluation assets (733) (139) (1,163) (283)
Acquisition of put options (168) (811) (408) (811)
Net cash used in investing activities (7,798) (6,959) (12,209) (11,696)
Cash flows from financing activities
Dividends paid (2,912) (2,893) (5,632) (5,317)
Payment of lease liabilities (38) (35) (75) (72)
Shares issued - equity raise (net of transaction cost) - 4,834 - 15,658
Proceeds from loans and borrowings 2,032 - 2,032 -
Loan note instrument - Motapa payment - (1,288) - (6,687)
Loan note instrument - solar bond issue receipts (net of transaction cost) 1,939 2,500 1,939 7,000
Net cash from (used in) financing activities 1,021 3,118 (1,736) 10,582
Net increase (decrease) in cash and cash equivalents 12,309 (6,067) 10,028 (4,216)
Effect of exchange rate fluctuations on cash and cash equivalents 485 (30) (362) (187)
Net cash and cash equivalents at beginning of the period (14,160) 3,190 (11,032) 1,496
Net cash and cash equivalents at end of the period (1,366) (2,907) (1,366) (2,907)
1 EBITDA $22.5 million (2023: 9.6 million): Operating profit $16.3 million
(2023: $2.6 million) + Depreciation $4.2 million (2023: $3.4 million) + Net
foreign exchange loss $2 million (2023: $3.6 million).
2 Refer to technical report "NI 43-101 Technical Report on the Blanket Gold
Mine, Zimbabwe" with effective date December 31, 2023 prepared by Caledonia
Mining Corporation Plc and filed by the Company on SEDAR+ (www.sedarplus.ca)
on May 15, 2024
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