REG - Caledonia Mining Crp - Results for the Year ended December 31, 2021
17/03/2022 07:00
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RNS Number : 0580F Caledonia Mining Corporation PLC 17 March 2022
Caledonia Mining Corporation Plc
Results for the Year ended December 31, 2021
Notice of Management Conference Call
(NYSE AMERICAN: CMCL; AIM: CMCL; VFEX: CMCL)
St Helier: March 17th, 2022
Caledonia Mining Corporation Plc ("Caledonia" or the "Company") announces its
operating and financial results for the year ended December 31, 2021 (the
"Year"). Further information on the financial and operating results for the
Year and the quarter ended December 31, 2021 (the "Quarter" or "Q4") can be
found in the Management Discussion and Analysis ("MD&A"), and the audited
financial statements which are available on the Company's website and which
have been filed on SEDAR.
2021 Financial Highlights
· Gross revenues of $121 million (2020: $100 million).
· Gross profit of $54.1 million (2020: $46.7 million).
· EBITDA of $46.4 million (2020: $45.4 million).
· On-mine cost per ounce(( 1 (#_ftn1) )) of $742 (2020: $744).
· Normalised all-in sustaining cost per ounce(1) (i.e. excluding the
effect of the export credit incentive and its successor scheme) of $990
(2020: $967).
· Adjusted earnings per share(1) of 226 cents (2020: 204 cents).
· Net cash from operating activities of $30.9 million (2020: $30.9
million).
· Net cash and cash equivalents of $17.2 million (2020: $19.1 million).
· Total dividend paid of 50 cents per share, a 49 per cent increase
from 2020.
Operating Highlights
· 67,476 ounces of gold produced in the Year (2020: 57,899 ounces);
record annual production at Blanket Mine.
· The Central Shaft was commissioned in the first quarter of 2021 and
the final stages of underground development and infrastructure are now being
completed.
· During Q4, Caledonia completed the acquisition of the mining claims
at Maligreen in the Zimbabwe midlands which is estimated to host a NI 43-101
compliant inferred mineral resource of approximately 940,000 ounces of gold in
15.6 million tonnes at a grade of 1.88g/t(( 2 (#_ftn2) )).
Post Year-End events and Outlook
· Regrettably, a fatal accident occurred on February 21, 2022. The
Directors and management of Caledonia and Blanket express their sincere
condolences to the family and colleagues of the deceased. Caledonia takes
the safety of its employees very seriously and, accordingly, measures have
been taken to reinforce adherence to prescribed safety procedures.
· 2022 gold production guidance of between 73,000 and 80,000 ounces.
· Progress on the 12MWac solar plant has resumed following delays
arising from the combined effects of COVID-19 and difficulties with the supply
chain. The plant is expected to provide approximately 27 per cent of
Blanket's total daily electricity demand, improve Blanket's security of
electricity supply and reduce its environmental footprint. It is anticipated
that the project will be commissioned in June 2022.
· Following the installation of a further autotap transformer in
December 2021, Blanket's consumption of diesel to generate electricity has
substantially reduced.
Conference Call
Management will host a conference call on 21 March to discuss its 2021 results
and the outlook for the Company. The details for this call are set out
towards the end of this announcement.
There will also be a results presentation video with management that will be
available on the Caledonia website at
https://www.caledoniamining.com/media/#corpvideos
(https://www.caledoniamining.com/media/#corpvideos)
Steve Curtis, Chief Executive Officer, commented:
"Operationally, the last 12 months have marked a turning point for the
business. The Central Shaft has been a huge project costing approximately $67
million, all funded through internal cashflow and I am delighted that it was
commissioned in the first quarter of 2021.
"Production in the Year was 67,476 ounces, which was above the top end of the
guidance range and was a new record for annual production. The robust
operating performance was supported by good cost control and gross profit for
the Year was $54.1 million - 16 per cent higher than 2020. Cash generated
from operations before working capital increased by 17 per cent from $42.4
million to $49.6 million.
"Now that the Central Shaft is commissioned, we expect further increases in
production: guidance for 2022 is a range of 73,000 to 80,000 ounces while from
2023 onwards it is 80,000 ounces(( 3 (#_ftn3) )) - 38 per cent higher than in
2020.
"We continued to increase the dividend in 2021. The total dividends paid in
2021 were 50 cents per share - almost 50 per cent higher than in 2020.
"To improve the quality and security of Blanket's electricity supply, minimise
our environmental footprint and help create a more sustainable future for our
business, Caledonia is constructing the first phase of a 12 MWac solar plant
that will provide approximately 27 per cent of the average daily electricity
demand at Blanket Mine. This project, which is expected to yield a modest
return to shareholders, is expected to be completed in mid-2022.
"Caledonia's immediate strategic focus is to complete the remaining
underground development associated with the Central Shaft project, which is
expected to increase production, reduce operating costs and increase the
flexibility to undertake further exploration and development at depth, thereby
safeguarding and enhancing Blanket's long-term future. We also believe there
is excellent exploration potential in the older shallower areas of the mine
and in brownfield sites immediately adjacent to the existing Blanket
footprint.
"During the Year we acquired the mining claims at Maligreen in the Zimbabwe
midlands which is estimated to host a NI 43-101 compliant inferred mineral
resource of approximately 940,000 ounces of gold in 15.6 million tonnes at a
grade of 1.88g/t. Our immediate focus on this asset is to improve the
confidence level of the existing resource base and we are currently
re-assaying historic drill cores. Thereafter we expect to prepare a
feasibility study to commercialise the existing resource before we engage in
further exploration on the claims area along strike, at depth and at a
previously unexplored zone in the claims area.
"Our approach to new projects is highly disciplined: after further evaluation,
the Company has decided not to exercise the options to acquire the Connemara
North property as it does not meet our investment criteria. During the Year,
we also divested non-core assets in the vicinity of Blanket. Caledonia
continues to evaluate further investment opportunities in the Zimbabwe gold
sector with a view to transforming the Company into a mid-tier, multi-asset
Zimbabwe-focussed gold producer."
Conference Call Details
A presentation of the 2021 results and outlook for Caledonia is available on
Caledonia's website (www.caledoniamining.com). Management will host a
conference call at 3pm GMT on 21st March 2022.
Details for the call are as follows:
When: Mar 21, 2022 03:00 PM London
Topic: Q4 Results Call for Shareholders
Register in advance for this webinar:
https://caledoniamining.zoom.us/webinar/register/WN_AazuhoJORKie314N-VsIQQ
(https://caledoniamining.zoom.us/webinar/register/WN_AazuhoJORKie314N-VsIQQ)
After registering, you will receive a confirmation email containing
information about joining the webinar.
Mr Dana Roets (B Eng (Min.), MBA, Pr.Eng., FSAIMM, AMMSA), Chief Operating
Officer, is the Company's qualified person as defined by Canada's National
Instrument 43-101 and has approved any scientific or technical information
contained in this news release.
Enquiries:
Caledonia Mining Corporation Plc
Mark Learmonth Tel: +44 1534 679 802
Camilla Horsfall Tel: +44 7817 841793
WH Ireland
Adrian Hadden/ Jessica Cave Tel: +44 20 7220 1751
BlytheRay Financial PR
Tim Blythe/Megan Ray Tel: +44 207 138 3204
3PPB
Patrick Chidley Tel: +1 917 991 7701
Paul Durham Tel: +1 203 940 2538
Curate Public Relations (Zimbabwe)
Debra Tatenda Tel: +263 77802131
The information contained within this announcement is deemed by the Company to
constitute inside information under the Market Abuse Regulation (EU) No.
596/2014.
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 Statement of Profit of Loss and Other Comprehensive
Income
3 months ended 12 months ended
($'000's) December 31 December 31
2020 2021 2019 2020 2021
Revenue 28,128 32,136 75,826 100,002 121,329
Royalty (1,408) (1,612) (3,854) (5,007) (6,083)
Production costs (11,174) (14,178) (36,400) (43,711) (53,126)
Depreciation (1,171) (2,303) (4,434) (4,628) (8,046)
Gross profit 14,375 14,043 31,138 46,656 54,074
Other income 29 4 2,274 4,765 46
Other expenses (3,488) (1,741) (666) (5,315) (7,136)
Administrative expenses (2,636) (3,830) (5,637) (7,997) (9,091)
Net foreign exchange (loss)/gain (389) 843 29,661 4,305 1,184
Cash-settled share-based payment (236) (51) (689) (1,413) (477)
Profit on sale of subsidiary - - 5,409 - -
Fair value loss on derivative assets (145) (133) (601) (266) (240)
Results from operating activities 7,510 9,135 60,889 40,735 38,360
Net finance costs 49 (7) (198) (305) (361)
Profit before tax 7,559 9,128 60,691 40,430 37,999
Tax expense (3,763) (3,539) (10,290) (15,173) (14,857)
Profit for the period 3,796 5,589 50,401 25,257 23,142
Other comprehensive income
Items that are or may be reclassified to profit or loss
Exchange differences on translation of foreign operations 973 (382) 49 (173) (531)
Reversal of foreign exchange currency translation differences on disposal of - - (2,109) - -
subsidiary
Total comprehensive income for the period 4,769 5,207 48,341 25,084 22,611
Profit attributable to:
Shareholders of the Company 2,973 4,222 42,018 20,780 18,405
Non-controlling interest 823 1,367 8,383 4,477 4,737
Profit for the period 3,796 5,589 50,401 25,257 23,142
Total comprehensive income attributable to:
Shareholders of the Company 3,946 3,840 39,958 20,607 17,874
Non-controlling interest 823 1,367 8,383 4,477 4,737
Total comprehensive income for the period 4,769 5,207 48,341 25,084 22,611
Earnings per share (cents)
Basic 24.0 33.3 382.0 173.4 148.6
Diluted 23.9 33.3 381.5 173.2 148.5
Adjusted earnings per share (cents)(3)
Basic 74.9 42.1 145.1 204.2 225.9
Dividends declared per share (cents) 10.0 14.0 27.5 33.5 50.0
Condensed Consolidated Statement of Cash Flows
($'000's)
12 months ended December 31
2019 2020 2021
Cash flows from operating activities
Cash generated from operations 23,885 37,967 38,703
Net interest paid (308) (349) (374)
Tax paid (5,517) (6,656) (7,426)
Net cash from operating activities 18,060 30,962 30,903
Cash flows used in investing activities
Acquisition of property, plant and equipment (20,024) (25,081) (32,112)
Acquisition of exploration and evaluation assets - (2,759) (5,717)
Realisation (purchase) of gold ETF - (1,058) 1,066
Proceeds from sale of assets held for sale - - 500
Proceeds from disposal of subsidiary 1,000 900 340
Net cash used in investing activities (19,024) (27,998) (35,923)
Cash flows from financing activities
Dividends paid (3,395) (4,542) (8,069)
Term loan repayments - (574) (361)
Proceeds from gold loan - - 2,752
Proceeds from call option - - 208
Term loan proceeds (net of transaction cost) 2,294 - -
Shares issued - equity raise (net of transaction cost) - 12,538 7,806
Payment of lease liabilities (124) (118) (129)
Proceeds from share options exercised - 30 165
Net cash (used in)/from financing activities (1,225) 7,334 2,372
Net (decrease)/increase in cash and cash equivalents (2,189) 10,298 (2,648)
Effect of exchange rate fluctuations on cash held (105) (99) (179)
Net cash and cash equivalents at beginning of the period 11,187 8,893 19,092
Net cash and cash equivalents at end of the period 8,893 19,092 16,265
Summarised Consolidated Statements of Financial Position
($'000's) As at Dec 31 Dec 31 Dec 31
2019 2020 2021
Total non-current assets 113,714 133,334 157,944
Inventories 11,092 16,798 20,812
Prepayments 2,350 1,974 6,930
Trade and other receivables 6,912 4,962 7,938
Income tax receivable - 76 101
Cash and cash equivalents 9,383 19,092 17,152
Derivative financial assets 102 1,184 -
Assets held for sale - 500 -
Total assets 143,553 177,920 210,877
Total non-current liabilities 9,486 9,913 12,633
Loans and borrowings - short term portion 529 408 -
Lease liabilities - short term portion 112 61 134
Trade and other payables 8,348 8,664 9,957
Derivative financial liabilities - - 3,095
Income taxes payable 163 495 1,562
Overdraft 490 - 887
Cash-settled share-based payments - short term portion - 336 2,053
Total liabilities 18,836 19,877 30,321
Total equity 124,717 158,043 180,556
Total equity and liabilities 143,553 177,920 210,877
1 (#_ftnref1) Non-IFRS measures such as "On-mine cost per ounce", "All-in
sustaining cost per ounce" and "adjusted EPS" are used throughout this
document. Refer to section 10 of the MD&A for a discussion of non-IFRS
measures.
2 (#_ftnref2) Refer to technical report entitled "Caledonia Mining
Corporation Plc NI 43-101 Mineral Resource Report on the Maligreen Gold
Project, Zimbabwe" by Minxcon (Pty) Ltd dated November 2, 2021 and filed on
SEDAR on November 5, 2021.
3 (#_ftnref3) Refer to the technical report entitled "Caledonia Mining
Corporation Plc NI 43-101 Technical Report on the Blanket Gold Mine, Zimbabwe"
dated May 17, 2021 prepared by Minxcon (Pty) Ltd and filed by the Company on
SEDAR (www.sedar.com (http://www.sedar.com) ) on May 26, 2021.
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