REG - Caledonia Mining Crp - Trading update for year ended December 31, 2023

Caledonia MiningAnnouncement

04/03/2024 07:00

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RNS Number : 4292F  Caledonia Mining Corporation PLC  04 March 2024

Caledonia Mining Corporation Plc

 

Trading update for the year ended December 31, 2023

 

 (NYSE AMERICAN: CMCL; AIM: CMCL; VFEX: CMCL)

 

St Helier, March 4, 2024 - Caledonia Mining Corporation Plc ("Caledonia" or
"the Company") provides the following trading update for the year ended
December 31, 2023.

 

Caledonia reports that Blanket Mine has continued to perform well since the
end of the quarter ended September 30, 2023 with full year production for 2023
of 75,416 ounces. As a result, the Company expects to report revenue for the
full year in line with market expectations.

 

However, increased operating costs for 2023 and several significant one-off,
non-operating costs in the final quarter of the year have resulted in reduced
profit for the full year. The increase in operating costs comprises of higher
than expected overtime payments and power costs at Blanket Mine. In relation
to non-operating costs, general and administrative costs rose with global
inflation and these also included higher than expected staff termination
costs.  The Company also encountered higher financing costs, including
hedging, interest, and foreign exchange losses and a one-off impairment charge
in relation to a VAT refund claim at the Blanket Mine solar project.

 

As a result of the above, the Company now expects to report an adjusted profit
before tax for the year ended December 31, 2023 materially below market
expectations.

 

Further information on the increase in costs will be provided in the operating
and financial results for the quarter ended December, 31 2023.

 

Reassuringly, a significant proportion of these cost increases are not
expected to be carried through into 2024. Specifically, costs associated with
Bilboes are now reduced to care and maintenance only and the project was cash
neutral in the fourth quarter of 2023. Production and costs at Blanket in 2024
to-date are also within expectations of full year guidance, and the Company is
introducing measures aimed at reducing electricity costs over the medium term.

 

At December 31, 2023, the Company had cash on hand of $6.7 million and
overdrafts and term loans of $17.7 million.

 

Notice of Results

The Company announces that its operating and financial results for the quarter
ended December 31, 2023 will be published on or before March 28, 2024.

 

Mark Learmonth, Chief Executive Officer, commented:

 

"It is regrettable that, at a group level, we have been adversely affected by
a series of higher-than-expected costs in the second half of 2023 which have
had a negative effect on the full year profitability. The performance of
Blanket Mine remains strong and, notwithstanding some unforeseen overtime and
power cost issues in the second half, has met guidance and produced a robust
performance for the second half of 2023.

 

"A number of the other cost items are not anticipated to be recurring, whereas
others have arisen from our decisions to invest in the business, most notably
around personnel and advancing the Bilboes sulphide project. I am confident
that many of these will not recur in 2024 which has started positively and I
look forward to the future with optimism as we pursue our goal of becoming a
multi-asset production company."

 

 

 Caledonia Mining Corporation Plc

 Mark Learmonth                                              Tel: +44 1534 679 802

 Camilla Horsfall                                            Tel: +44 7817 841793
 Cavendish Capital Markets Limited (Nomad and Joint Broker)

 Adrian Hadden

 Pearl Kellie                                                Tel: +44 207 397 1965

                                                             Tel: +44 131 220 9775
 Liberum Capital Limited (Joint Broker)

 Scott Mathieson/ Matt Hogg                                  Tel: +44 20 3100 2000
 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)   Tel: +263 (242) 745 119/33/39

 Lloyd Mlotshwa

 

Note: The information contained within this announcement is deemed by the
Company to constitute inside information under 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: our expectations in respect of
future costs and how to control them, the publication of annual financial
results, the performance of our investments and achieving our production
guidance for the year.  The forward-looking information contained in this
news release 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: the establishment of estimated resources and reserves, the
grade and recovery of minerals which are mined varying from estimates, success
of future exploration and drilling programs, reliability of drilling, sampling
and assay data, the representativeness of mineralization being accurate,
success of planned metallurgical test-work, capital availability and accuracy
of estimated operating costs, obtaining required governmental, environmental
or other project approvals, inflation, changes in exchange rates, fluctuations
in commodity prices, delays in the development of projects, the assessment of
the existing capital intensity of the Bilboes gold project and Caledonia's
experience of project development in Zimbabwe 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 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.

 

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