REG - Caledonia Mining Crp - Results for the Quarter ended March 31, 2024
13/05/2024 07:00
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RNS Number : 0702O Caledonia Mining Corporation PLC 13 May 2024
Caledonia Mining Corporation Plc
Results for the Quarter ended March 31, 2024
Notice of Management Conference Call
(NYSE AMERICAN: CMCL; AIM: CMCL; VFEX: CMCL)
St Helier, May 13, 2024: Caledonia Mining Corporation Plc ("Caledonia" or "the
Company") announces its operating and financial results for the quarter ended
March 31, 2024 (the "Quarter"). Further information on the financial and
operating results for the Quarter can be found in the Management Discussion
and Analysis ("MD&A") and the unaudited interim financial statements which
are available on the Company's website and which are being filed on SEDAR
today.
Financial Highlights
· Gross profit of $13.8 million (Q1 2023: $5.8 million). Gross profit
for the Quarter increased from Q1 2023, due to higher gold revenue of $38.5
million and lower production costs.
· EBITDA in the period of $9.9 million (Q1 2023: $2.3 million). Blanket
Mine ("Blanket") contributed EBITDA of $17.5 million (Q1 2023: $11.3 million).
· On-mine cost 1 per ounce of $993 at Blanket in the Quarter was
virtually unchanged from Q1 2023's amount of $991.
· All-in sustaining cost ("AISC") 1 was $1,296 per ounce (Q1 2023:
$1,412 per ounce). The AISC per ounce in the Quarter decreased by 8.2%
predominantly due to the lower production costs incurred at Bilboes and the
non-recurrence of advisory costs for the Bilboes acquisition in 2023. AISC
includes the benefit of the solar plant electricity saving of $51 per ounce
for the Quarter. Although lower than Q1 2023, AISC is expected to be higher
for the full year than in previous years due to the classification of certain
items of ongoing capital expenditure on projects that are now treated as
"sustaining" investment rather than "expansion" investment.
· The accelerated devaluation of the Zimbabwe currency, during the
Quarter, resulted in a foreign exchange loss of $4.1 million (Q1 2023: $1.5
million gain).
· Adjusted earnings per share ("EPS") 1 amounted to 26.9 cents (Q1
2023: loss of 29.1 cents).
· Net cash from operating activities amounted to $4.9 million (Q1 2023:
net cash outflow of $0.9 million). The higher operating profit increased the
net cash from operating activities, partly offset by $4.1 million of
short-term working capital movements at the end of the Quarter.
· Net cash and cash equivalents of -$14.2 million (Dec 31, 2023: -$11
million). Net cash decreased by $2.3 million due to short-term working capital
movements at the end of the Quarter and $3.6 million of foreign exchange
losses.
· Quarterly dividends of 14 cents per share were paid in January and
April of 2024.
Operating Highlights
· 17,476 ounces of gold produced in the Quarter (Q1 2023: 16,141
ounces) of which 17,050 ounces were produced at Blanket and 426 ounces were
produced at the Bilboes oxide mine.
· Gold produced at Blanket was a 6% increase from Q1 2023 due to higher
tonnage and grade and improved gold recovery.
· 7,956 ounces of gold were produced at Blanket in April 2024 (April
2023: 5,194).
· Encouraging results from the deep-level drilling programme at
Blanket, as announced in January 2024, which is currently evaluating the
continuity of the mineralised zones on the Blanket and Eroica ore bodies.
Total drilling for 2023 was 13,280 metres and the results will be reflected in
a revised mineral resource statement and expected increase in life of mine to
be announced shortly.
Outlook
· Production guidance for Blanket for the year to December 31, 2024 of
74,000 to 78,000 ounces of gold is maintained.
· On mine cost guidance for Blanket for the year to December 31, 2024 is
maintained at $870/oz to $970/oz and AISC guidance is maintained at 1,370/oz
to 1470/oz.
Mark Learmonth, Chief Executive Officer, commented:
"The first quarter of 2024 got off to a strong start with an increase in
production and profit, supported by a favourable gold price. This has
continued through April and into May.
"We were highly encouraged by the results from the underground exploration
programme which has yielded excellent results indicating that the Blanket,
Eroica and AR South ore bodies have better than expected grades and widths at
depth. The results of this drilling programme are being incorporated into a
new technical report summary for Blanket Mine which we will announce shortly;
it will show a meaningful increase in the life of the mine at Blanket.
"Work to refresh the existing study for the large-scale sulphide project at
Bilboes is well-advanced. Management is considering various options for
developing Bilboes, with a view to optimising capital allocation and
maximising the uplift in value for Caledonia shareholders. I look forward to
updating investors with these results in the next few weeks. Thereafter, the
work on the selected development route will be upgraded to a feasibility
study. This activity will take place in parallel with a process to secure debt
finance for the project."
Conference Call Details
A presentation of the results for the Quarter and outlook for Caledonia will
be available on Caledonia's website (www.caledoniamining.com). Management will
host a conference call / webinar at 2pm London time on May 13, 2024.
When: May 13, 2024 02:00 PM London
Topic: Q1 2024 Results Call for Shareholders
Register in advance for this webinar:
https://caledoniamining.zoom.us/webinar/register/WN_us6Gi-teTbCOpV_QF_mJaQ
(https://caledoniamining.zoom.us/webinar/register/WN_us6Gi-teTbCOpV_QF_mJaQ)
After registering, you will receive a confirmation email containing
information about joining the webinar.
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 Tel: +44 207 397 1965
Pearl Kellie Tel: +44 131 220 9775
Liberum Capital Limited (Joint Broker)
Scott Mathieson/ Matt Hogg Tel: +44 20 3100 2000
Camarco, Financial PR/ IR (UK)
Gordon Poole Tel: +44 20 3757 4980
Julia Tilley
Elfie Kent
3PPB (Financial PR, North America) Tel: +1 917 991 7701
Patrick Chidley Tel: +1 203 940 2538
Paul Durham
Curate Public Relations (Zimbabwe) Tel: +263 77802131
Debra Tatenda
IH Securities (Private) Limited (VFEX Sponsor - Zimbabwe) Tel: +263 (242) 745 119/33/39
Lloyd Mlotshwa
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 guidance, estimates of
future/targeted production rates, and our plans and timing regarding further
exploration and drilling and development. 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 Mar 31
2024 2023
Revenue 38,528 29,435
Royalty (1,934) (1,480)
Production costs (18,960) (19,850)
Depreciation (3,819) (2,255)
Gross profit 13,815 5,850
Net foreign exchange (loss) gain (4,139) 1,533
Administrative expenses (2,611) (5,938)
Net derivative financial instrument expenses (302) (434)
Equity-settled share-based expense (201) (110)
Cash-settled share-based expense (53) (280)
Other expenses (600) (640)
Other income 164 18
Operating profit (loss) 6,073 (1)
Net finance costs (726) (767)
Profit (loss) before tax 5 347 (768)
Tax expense (2,530) (3,502)
Profit (loss) for the period 2,817 (4,270)
Other comprehensive income
Items that are or may be reclassified to profit or loss
Exchange differences on translation of foreign operations (144) (369)
Total comprehensive income (loss) for the period 2,673 (4,639)
Profit (loss) attributable to:
Owners of the Company 2,131 (5,030)
Non-controlling interests 686 760
Profit (loss) for the period 2,817 (4,270)
Total comprehensive income (loss) attributable to:
Owners of the Company 1 987 (5,399)
Non-controlling interests 686 760
Total comprehensive income (loss) for the period 2 673 (4,639)
Earnings (loss) per share (cents)
Basic earnings (loss) per share 10.6 (30.3)
Diluted earnings (loss) per share 10.6 (30.2)
Adjusted earnings (loss) per share (cents)
Basic 26.9 (29.1)
Dividends paid per share (cents) 14.0 14.0
Condensed Consolidated Statements of Cash Flows
($'000's)
3 months ended Mar 31
2024 2023
Cash inflow from operations 6,535 664
Interest received 6 5
Finance costs paid (573) (200)
Tax paid (1,081) (1,345)
Net cash inflow (outflow) from operating activities 4,887 (876)
Cash flows used in investing activities
Acquisition of property, plant and equipment (3,741) (4,593)
Acquisition of exploration and evaluation assets (430) (144)
Acquisition of put options (240) -
Net cash used in investing activities (4,411) (4,737)
Cash flows from financing activities
Dividends paid (2,720) (2,424)
Payment of lease liabilities (37) (37)
Shares issued - equity raise (net of transaction cost) - 10,823
Loan note instrument - Motapa payment - (5,399)
Loan note instrument - solar bond issue receipts (net of transaction cost) - 4,500
Net cash (used in) from financing activities (2,757) 7,463
Net (decrease) increase in cash and cash equivalents (2,281) 1,850
Effect of exchange rate fluctuations on cash and cash equivalents (847) (157)
Net cash and cash equivalents at beginning of the period (11,032) 1,496
Net cash and cash equivalents at end of the period (14,160) 3,189
Summarised Consolidated Statements of Financial Position
($'000's) As at Mar 31 Dec 31
2024 2023
Total non-current assets 274,307 274,074
Income tax receivable 80 1,120
Inventories 20,542 20,304
Derivative financial assets 26 88
Trade and other receivables 7,558 9,952
Prepayments 3,947 2,538
Cash and cash equivalents 1,831 6,708
Assets held for sale 13,486 13,519
Total assets 321,777 328,303
Total non-current liabilities 22,611 23,978
Cash-settled share-based payments - short term portion 313 920
Income tax payable 102 10
Lease liabilities - short term portion 141 167
Loan note instruments - short term portion 665 665
Trade and other payables 20,842 20,503
Overdraft and term loans 15,991 17,740
Liabilities associated with assets held for sale 96 128
Total liabilities 60,761 64,111
Total equity 261,016 264,192
Total equity and liabilities 321,777 328,303
1 Non-IFRS measures such as "On-mine cost per ounce", "AISC", "average
realised gold price" and "adjusted EPS" are used throughout this document.
Refer to section 10 (#NONIFRSMEASURES) of the MD&A for a discussion of
non-IFRS measures.
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