REG - Caledonia Mining Crp - Results for the Quarter ended March 31, 2025
12/05/2025 07:00
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RNS Number : 1679I Caledonia Mining Corporation PLC 12 May 2025
Caledonia Mining Corporation Plc
Results for the Quarter ended March 31, 2025
Details of Management Conference Call
(NYSE AMERICAN: CMCL; AIM: CMCL; VFEX: CMCL)
Strong Q1 Performance Driven by Increased Production and Higher Gold Prices
St Helier, May 12, 2025: Caledonia Mining Corporation Plc ("Caledonia" or "the
Company") announces its operating and financial results for the quarter ended
March 31, 2025 ("Q1 2025" or 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 consolidated
financial statements, which are available on the Company's website and are
being filed on SEDAR+.
Q1 2025 HIGHLIGHTS
Financial Highlights:
· Gold revenue of $56.2 million (Q1 2024: $38.5 million, +46%)
· Gross profit of $26.9 million (Q1 2024: $13.8 million, +95%)
· EBITDA of $22.6 million (Q1 2024: $9.1 million, +148%)
· Net profit attributable to shareholders of $8.9 million (Q1 2024:
$1.5 million, +493%)
· Adjusted EPS of 58.5 cents (Q1 2024: 9.7 cents, +503%)
· Net cash from operating activities of $13.3 million (Q1 2024:
$4.9 million, +171%)
· Net cash position improved to negative $4.6 million (Q1 2024:
negative $14.2 million)
· Pro forma net cash of $18.6 million following completion of the
solar plant sale for $22.35 million in April 2025.
· $11.8 million contributed to the Zimbabwe Government in the form
of royalites and taxes (Q1 2024: $4.5 million)
Operational Highlights:
· Gold production (Blanket Mine and Bilboes oxides mine) of 19,106
ounces (Q1 2024: 17,476 ounces, +9.3%)
· On-mine cost per ounce of $1,202 (Q1 2024: $1,065, +12.9%)
· All-in sustaining cost (AISC) per ounce of $1,797 including
certain one off / non-recurring costs (Q1 2024: $1,350, +33.1%)
· Average realised gold price of $2,896 per ounce (Q1 2024: $2,040,
+42%)
· Continued progress on Bilboes Feasibility Study
· Launched $2.8 million exploration program at Motapa
· Production guidance at Blanket Mine for 2025 reaffirmed at 74,000
to 78,000 ounces of gold 1
· Under the direction of the Chief Operating Officer, management has
initiated a comprehensive review of safety procedures and safety training
Mark Learmonth, Chief Executive Officer, commented:
"Caledonia has delivered an exceptional first quarter with gold production up
9.3% and gross profit nearly doubling to $26.9 million compared to the same
period last year. This strong performance demonstrates our operational
resilience and ability to capitalise on favorable gold prices.
"The successful completion of the solar plant sale for $22.35 million has
significantly strengthened our balance sheet, positioning us well to
accelerate our growth plans at Bilboes and Motapa whilst investing to achieve
operational improvements and efficiencies at Blanket Mine.
"As we move forward in 2025, we remain focused on three strategic priorities:
maximising profitable production at Blanket, optimising the economics of the
Bilboes project, and unlocking the exploration potential at Motapa. I am
confident that our disciplined approach to capital allocation and strategic
growth will continue to deliver strong returns for our shareholders."
1 Refer to the technical report entitled "NI 43-101 Technical Report on
the Blanket Gold Mine, Zimbabwe" with effective date December 31,
2023 prepared by Caledonia Mining Corporation Plc and filed by the Company
on SEDAR+ (https://www.sedarplus.ca (https://www.sedarplus.ca/) ) on May 15,
2024.
Craig James Harvey, MGSSA, MAIG, Caledonia Vice President, Technical Services,
has reviewed and approved the scientific and technical information contained
in this news release. Craig James Harvey is a "Qualified Person" as defined
by each of (i) the Canadian Securities Administrators' National Instrument
43-101 - Standards of Disclosure for Mineral Projects and (ii) sub-part 1300
of Regulation S-K of the U.S. Securities Act.
FINANCIAL RESULTS
Key Metrics ($'000 except per share amounts) Q1 2025 Q1 2024 % Change
Revenue 56,178 38,528 +46%
Gross Profit 26,926 13,815 +95%
Net Profit Attributable to Shareholders 8,915 1,486 +500%
Basic IFRS EPS (cents) 44.6 7.3 +511%
Adjusted EPS (cents) 58.5 9.7 +503%
Net Cash from Operating Activities 13,341 4,887 +173%
Net Cash Position (4,572) (14,160) +68%
Gold Produced (oz) 19,106 17,476 +9.3%
On-mine Cost ($/oz) 1,202 1,065 +12.9%
AISC ($/oz) 1,797 1,350 +33.1%
Revenue and Profit
Revenue for the Quarter was $56.2 million, a 46% increase from $38.5 million
in Q1 2024. This improvement was driven by higher sales and a 42% increase in
the average realised gold price to $2,896 per ounce.
Gross profit nearly doubled to $26.9 million (Q1 2024: $13.8 million),
resulting in a gross margin of 48% (Q1 2024: 36%). This reflects the benefit
of higher gold prices, which more than offset the increase in production
costs.
Net profit attributable to shareholders increased nearly six times to $8.9
million (Q1 2024: $1.5 million), while adjusted EPS rose to 58.5 cents from
9.7 cents in Q1 2024.
Costs
On-mine cost per ounce increased by 12.9% to $1,202 (Q1 2024: $1,065),
primarily due to higher labour, power and consumables costs at Blanket Mine.
AISC rose to $1,797 per ounce (Q1 2024: $1,350), predominantly due to the
higher on-mine cost, increased sustaining capital expenditure and
administrative costs, including some one-off expenses.
The Company continues to focus on cost control initiatives to mitigate these
pressures.
Cash Flow
Net cash from operating activities more than doubled to $13.3 million (Q1
2024: $4.9 million), providing strong internal funding for capital investments
and debt reduction.
The net cash position improved to negative $4.6 million at quarter-end,
compared to negative $14.2 million in Q1 2024. Following the completion of the
solar plant sale in April 2025, Caledonia's pro forma consolidated net cash
position improved to $18.6 million, providing financial flexibility for future
growth initiatives.
OPERATIONAL REVIEW
Blanket Mine
Blanket Mine produced 18,671 ounces of gold in Q1 2025, a 9.5% increase from
17,050 ounces in Q1 2024. The improved performance was driven by higher milled
tonnage, which offset slightly lower grades. The mine remains on track to
achieve its 2025 production guidance.
Bilboes Project
435 ounces of gold were produced from the Bilboes oxide mine in the Quarter
(Q1 2024: 426 ounces). Work continues on finalising the feasibility study for
the Bilboes project, with a focus on optimising the economics in response to
updated capital cost projections. The Company is evaluating various
development scenarios to maximise shareholder returns.
Motapa Exploration
Following encouraging results from drilling at Motapa in 2024, Caledonia has
launched a $2.8 million exploration program for 2025, targeting both sulphide
and oxide resources.
SAFETY
Under James Mufara, the Chief Operating Officer appointed in May 2024, the
Company has implemented comprehensive safety improvements including: hiring a
Group SHE Manager, introducing proactive safety indicators, enhancing accident
investigation, implementing real-time monitoring, adopting SLAM (Stop, Look,
Access, Manage) methodology, developing a 10-point accident mitigation plan
(90% complete with decreased incidents), launching a Visible Felt Leadership
program, completing risk assessments, and improving emergency preparedness.
LEADERSHIP CHANGES
The Company has strengthened its board of directors and management team with
several key appointments in the Quarter:
· Stefan Buys and Lesley Goldwasser appointed as independent
non-executive directors
· Tariro Gadzikwa appointed as Audit Committee chair following
Johan Holtzhausen's retirement
· Ross Jerrard appointed as Chief Financial Officer
OUTLOOK AND GUIDANCE
The Company reaffirms its 2025 production guidance of 74,000 to 78,000 ounces
of gold from Blanket Mine.
Cost guidance remains unchanged, with on-mine cost expected to be
$1,050-$1,150 per ounce and AISC projected at $1,690-$1,790 per ounce.
Capital expenditure for 2025 is forecast at $41.0 million, which will be fully
funded from existing cash reserves and operating cash flow.
INVESTOR CONFERENCE CALL
Details of Investor and Analyst Presentation
A presentation for investors and analysts will be held as follows:
When: May 12, 2025 at 2:00pm London time
Topic: Q1 2025 Results Call for Investors
Register in advance for this webinar:
https://brrmedia.news/CMCL_Q1 (https://brrmedia.news/CMCL_Q1)
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
Liberum Panmure (Joint Broker)
Scott Mathieson Tel: +44 20 3100 2000
Ailsa MacMaster
Camarco, Financial PR/ IR (UK)
Gordon Poole Tel: +44 20 3757 4980
Elfie Kent
Fergus Young
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
This announcement contains inside information which is disclosed in accordance
with the Mrket 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, our plans and
timing regarding further exploration and drilling and development, future
costs, the development of Bilboes and Motapa, the amount and funding of
capital costs and the publication of the Bilboes feasibility study. 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, risks related to potentially being unable
to remedy the deficiency in control over accounting for deferred tax
liabilities and risks related to potentially being unable to prevent financial
statements misstatements in the future. 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 March 31,
2025 2024 2023
Restated* Restated*
Revenue 56,178 38,528 29,435
Royalty (2,771) (1,934) (1,480)
Production costs (22,622) (18,960) (19,850)
Depreciation (3,859) (3,819) (2,255)
Gross profit 26,926 13,815 5,850
Net foreign exchange (loss) gain (1,252) (4,882) 36
Administrative expenses (4,598) (2,611) (5,938)
Net derivative financial instrument expense (1,592) (302) (434)
Equity-settled share-based credit (expense) 144 (201) (110)
Cash-settled share-based expense (158) (53) (280)
Other expenses (843) (600) (640)
Other income 66 164 18
Operating profit (loss) 18,693 5,330 (1,498)
Finance income 6 6 5
Finance cost (900) (732) (772)
Profit (loss) before tax 17,799 4,604 (2,265)
Tax expense (6,636) (2,530) (2,380)
Profit (loss) for the period 11,163 2,074 (4,645)
Other comprehensive income
Items that are or may be reclassified to profit or loss
Exchange differences on translation of foreign operations 207 (144) (369)
Total comprehensive income for the period 11,370 1,930 (5,014)
Profit (loss) attributable to:
Owners of the Company 8,915 1,486 (5,356)
Non-controlling interests 2,248 588 711
Profit (loss) for the period 11,163 2,074 (4,645)
Total comprehensive income attributable to:
Owners of the Company 9,122 1,342 (5,725)
Non-controlling interests 2,248 588 711
Total comprehensive income for the period 11,370 1,930 (5,014)
Earnings (loss) per share (cents)
Basic earnings (loss) per share 44.6 7.3 (32.2)
Diluted earnings (loss) per share 44.6 7.3 (32.2)
Adjusted earnings per share (cents)
Basic 58.5 9.7 (26.3)
Dividends paid per share(#) - 14.0 14.0
(*) Refer to section 11 and section 12 of the MD&A.
( #) Refer section 3.3.3 of the MD&A.
Summarised Consolidated Statements of Financial Position ($'000's) (Unaudited)
As at Mar 31 Dec 31 Dec 31
2025 2024 2023
*Restated
Total non-current assets 290,914 287,046 274,074
Income tax receivable 216 355 1,120
Inventories 25,317 23,768 20,304
Derivative financial assets - - 88
Trade and other receivables 17,268 12,675 9,952
Prepayments 7,776 6,748 2,538
Cash and cash equivalents 8,728 4,260 6,708
Assets held for sale 13,520 13,512 13,519
Total assets 363,739 348,364 328,303
Total non-current liabilities 71,405 68,505 63,970
Cash-settled share-based payment 674 634 920
Income tax payable 4,363 2,958 10
Lease liabilities 140 95 167
Loans and borrowings 1,455 1,174 -
Loan notes 1,093 855 665
Trade and other payables 28,222 26,647 20,503
Overdrafts 13,300 12,928 17,740
Liabilities associated with assets held for sale 118 104 128
Total liabilities 120,770 113,900 104,103
Total equity 242,969 234,464 224,200
Total equity and liabilities 363,739 348,364 328,303
(*) Refer to section 11 and section 12 of the MD&A.
Condensed Consolidated Statements of Cash Flows (Unaudited)
($'000's)
Three months ended
March 31,
2025 2024
Cash inflow from operations 18,709 6,535
Interest received 6 6
Finance costs paid (543) (573)
Tax paid (4,831) (1,081)
Net cash inflow from operating activities 13,341 4,887
Cash flows used in investing activities
Acquisition of property, plant and equipment (7,250) (3,741)
Acquisition of exploration and evaluation assets (1,229) (430)
Acquisition of Put options (1,592) (240)
Net cash used in investing activities (10,071) (4,411)
Cash flows from financing activities
Dividends paid (1,387) (2,720)
Payment of lease liabilities (181) (37)
Loan notes - solar bond issue receipts (net of transaction cost) 2,387 -
Net cash from / (used in) financing activities 819 (2,757)
Net increase / (decrease) in cash and cash equivalents 4,089 (2,281)
Effect of exchange rate fluctuations on cash and cash equivalents 7 (847)
Net cash and cash equivalents at the beginning of the period (8,668) (11,032)
Net cash and cash equivalents at the end of the period (4,572) (14,160)
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