REG - Caledonia Mining Crp - Results for the Year ended December 31, 2022

Caledonia MiningAnnouncement

24/03/2023 07:00

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RNS Number : 0830U  Caledonia Mining Corporation PLC  24 March 2023

Caledonia Mining Corporation Plc

Results for the Year ended December 31, 2022

Notice of Management Conference Call

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

St Helier: March 24, 2023

Caledonia Mining Corporation Plc ("Caledonia" or the "Company") announces its
operating and financial results for the year ended December 31, 2022 (the
"Year"). Further information on the financial and operating results for the
Year and the quarter ended December 31, 2022 (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 have
been filed on SEDAR.

 2022 Financial Highlights (USD)

·    Gross revenues of $142 million (2021: $121 million).

·    Gross profit of $61.8 million (2021: $54.1 million).

·    EBITDA of $50.4million (2021: $46.4 million).

·    On-mine cost per ounce(( 1  (#_ftn1) )) of $735 (2021: $742).

·    All-in sustaining cost per ounce(1) of $878 (2021: $856).

·    Adjusted earnings per share (EPS)(1) of 219.9 cents (2021: 225.9
cents).

·    Net cash from operating activities of $42.6 million (2021: $30.9
million).

·    Net cash and cash equivalents of $1.5 million (2021: $16.3 million).

·    Dividend paid of 56 cents per share (2021: 50 cents per share).

 

Operating Highlights

·    80,775 ounces ("oz") of gold produced in the Year (2021: 67,476oz);
record annual production at Blanket Mine and achieving the Company's long-term
production target.

·    During Q4, Caledonia completed the acquisition of a company owning
the mining lease for Motapa, a property contiguous to the Bilboes gold project
with the potential of gold processing synergy.

·    In the Quarter, the 12.2 MWac solar plant at Blanket Mine started to
generate power.

 

 

 

Post Year-end events and Outlook

·    Regrettably, a fatal accident occurred on February 16, 2023. 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.

·    2023 combined gold production guidance of between 87,500 - 97,000oz
comprised of:

o  75,000 - 80,000oz from Blanket. 2  (#_ftn2)

o  12,500 - 17,000oz from the oxide operation at Bilboes. 3  (#_ftn3)

·    In January the Company completed the acquisition of the Bilboes gold
project in Zimbabwe.

o  A large high-grade gold deposit.

o  The project has NI 43-101 compliant proven and probable mineral reserves
of 1.96 million ounces ("Moz") of gold in 26.64 million tonnes ("Mt") at a
grade of 2.29 grams per ton ("g/t") and measured and indicated mineral
resources of 2.56 Moz of gold in 35.18Mt at a grade of 2.26 g/t and inferred
mineral resources of 577,000oz of gold in 9.48Mt at a grade of 1.89 g/t. 4 
(#_ftn4)

·   In February the Company released an update to the NI 43-101 compliant
mineral resources and reserves at Blanket Mine. The total measured and
indicated mineral resources inclusive of mineral reserves has increased from
the most recently published estimate by 52% to 1,095,000oz of gold in 10.72Mt
at a grade of 3.18 g/t and the total mineral reserves increased by 1% to
395,000oz of gold in 3.94Mt at a grade of 3.12 g/t 5  (#_ftn5) .

Conference Call

Management will host a conference call on March 28, 2023 to discuss the 2022
results and the outlook for the Company.  The details for this call are set
out towards the end of this announcement.

Mark Learmonth, Chief Executive Officer, commented:

"Operationally, the last 12 months have marked a turning point for the
business, and I am delighted that we hit our long-term target of just over
80,000oz. The last couple of years has seen a tremendous amount of change in
the Company as we pivot the direction of the business towards becoming a
multi-asset gold producer in Zimbabwe. We have always seen huge geological
potential in the country and are very excited about the portfolio of
attractive new assets that we have acquired.

"In November we purchased Motapa, an asset we consider to be highly
prospective and strategically important in our growth ambitions, as it is a
large exploration property which is contiguous to the Bilboes gold project.

"In January 2023, following the satisfaction of conditions precedent, we
closed the acquisition of the Bilboes Gold Project. A feasibility study
prepared by the vendors indicates the potential for an open-pit gold mine
producing an average of 168,000oz per year over a 10-year life of mine.
Caledonia has commissioned its own feasibility study to identify the most
judicious way to commercialise the project to optimize shareholder returns.
 One approach that will be considered is a phased development which would
minimise the initial capital investment and reduce the need for third party
funding. The Company has also restarted the oxide operations at Bilboes
providing immediate cash-flow and has given guidance of between 12,500 -
17,000oz for 2023.

 "In November 2022, the Company's 12.2MWac solar plant was connected to the
Blanket grid and the mine has since been receiving 27% of its energy from
solar. The solar power will displace power from the grid and from the diesel
generators and is expected to reduce Caledonia's consolidated cost per ounce
of gold produced by approximately $37. This completion happily coincides with
an improvement in the supply of power from the Zimbabwe grid which has
substantially reduced the amount of diesel consumed.  We are confident that
we will continue to see an ongoing meaningful reduction to our diesel usage
month on month, fully justifying our investment in solar power and delivering
on our Environmental Social Governance strategy.

"The quarterly dividend continues to be an important part of the Company's
strategy and during the Year we paid a quarterly dividend of 14 cents a share,
providing a healthy yield to our shareholders. We believe the dividend coupled
with our growth strategy makes us an attractive investment and sets us apart
from our industry peers.

 

"I would like to thank the Caledonia team for their continued hard work, and I
look forward to updating shareholders of our progress."

 

Conference Call Details

A presentation of the 2022 results and outlook for Caledonia is available on
Caledonia's website (www.caledoniamining.com). Management will host a
conference call at 2pm London time on March 28, 2023.

 

 

 

Details for the call are as follows:

When: March 28, 2023 02:00 PM London

Topic: 2022 Full Year and Q4 Results call for Shareholders

Register in advance for this webinar:
https://caledoniamining.zoom.us/webinar/register/WN_kZXEkm8AQZajiCX55eqLBA
(https://caledoniamining.zoom.us/webinar/register/WN_kZXEkm8AQZajiCX55eqLBA)

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 679 800

 Camilla Horsfall                                           Tel: +44 7817 841 793
 Cenkos Securities plc (Nomad and Joint Broker)

 Adrian Hadden                                              Tel: +44 207 397 1965

 Neil McDonald                                              Tel: +44 131 220 9771

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

 Scott Mathieson/Kane Collings                              Tel: +44 20 3100 2000
 BlytheRay Financial PR (UK)

 Tim Blythe/Megan Ray                                       Tel: +44 207 138 3204

 3PPB (Financial PR, North America)                         Tel: +1 917 991 7701

 Patrick Chidley                                            Tel: +1 203 940 2538

 Paul Durham
                                                            Tel: +263 77802131

 Curate Public Relations (Zimbabwe)

 Debra Tatenda
 IH Securities (Private) Limited (VFEX Sponsor - Zimbabwe)  Tel: +263 (242) 745 119/33/39

 Lloyd Mlotshwa

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.

 

  Consolidated statements of profit or loss and other comprehensive income

(in thousands of United States Dollars, unless indicated otherwise)

 For the years ended December 31                                Note  2022      2021      2020

 Revenue                                                        8     142,082   121,329   100,002
 Royalty                                                              (7,124)   (6,083)   (5,007)
 Production costs                                               9     (62,998)  (53,126)  (43,711)
 Depreciation                                                   17    (10,141)  (8,046)   (4,628)
 Gross profit                                                         61,819    54,074    46,656
 Other income                                                         60        46        4,765
 Other expenses                                                 10    (11,782)  (7,136)   (5,315)
 Administrative expenses                                        11    (11,941)  (9,091)   (7,997)
 Cash-settled share-based expense                               12.1  (609)     (477)     (1,413)
 Equity-settled share-based expense                             12.2  (484)     -         -
 Net foreign exchange gain                                      13    4,411     1,184     4,305
 Net derivative financial instrument expense                    14    (1,198)   (240)     (266)
 Operating profit                                                     40,276    38,360    40,735
 Finance income                                                 15    17        14        62
 Finance cost                                                   15    (657)     (375)     (367)
 Profit before tax                                                    39,636    37,999    40,430
 Tax expense                                                    16    (16,770)  (14,857)  (15,173)
 Profit for the year                                                  22,866    23,142    25,257

 Other comprehensive loss
 Items that are or may be reclassified to profit or loss
 Exchange differences on translation of foreign operations            (462)     (531)     (173)
 Total comprehensive income for the year                              22,404    22,611    25,084

 Profit attributable to:
 Owners of the Company                                                17,903    18,405    20,780
 Non-controlling interests                                      27    4,963     4,737     4,477
 Profit for the year                                                  22,866    23,142    25,257

 Total comprehensive income attributable to:
 Owners of the Company                                                17,441    17,874    20,607
 Non-controlling interests                                      27    4,963     4,737     4,477
 Total comprehensive income for the year                              22,404    22,611    25,084

 Earnings per share
 Basic earnings per share ($)                                   26    1.36      1.49      1.73
 Diluted earnings per share ($)                                 26    1.35      1.48      1.73

 

Consolidated statements of cash flows

For the years ended December 31,

(in thousands of United States Dollars, unless indicated otherwise)

                                                                        Note  2022      2021      2020

 Cash generated from operations                                         31    49,657    38,703    37,967
 Interest received                                                            17        14        56
 Net finance costs paid                                                       (192)     (388)     (405)
 Tax paid                                                               16    (6,866)   (7,426)   (6,656)
 Net cash generated from operating activities                                 42,616    30,903    30,962

 Cash flows used in investing activities
 Acquisition of property, plant and equipment                                 (41,495)  (32,112)  (25,081)
 Acquisition of exploration and evaluation assets                             (2,596)   (5,717)   (2,759)
 Proceeds from sale of assets held for sale                                   -         500       -
 Proceeds from (purchase of) derivative financial assets                      -         1,066     (1,058)
 Proceeds from disposal of subsidiary                                         -         340       900
 Acquisition of Put options                                             14.1  (478)     -         -
 Net cash used in investing activities                                        (44,569)  (35,923)  (27,998)

 Cash flows from financing activities
 Dividends paid                                                               (8,906)   (8,069)   (4,542)
 Term loan repayments                                                         -         (361)     (574)
 (Repayment of) proceeds from gold loan                                 14.2  (3,698)   2,752     -
 Proceeds from Call options                                             14.2     240    208       -
 Payment of lease liabilities                                           19    (150)     (129)     (118)
 Shares issued - equity raise (net of transaction cost)                 24    -         7,806     12,538
 Proceeds from share options exercised                                  24    -         165       30
 Net cash (used in) from financing activities                                 (12,514)  2,372     7,334

 Net (decrease) increase in cash and cash equivalents                         (14,467)  (2,648)   10,298
 Effect of exchange rate fluctuations on cash and cash equivalents            (302)     (179)     (99)
 Net cash and cash equivalents at the beginning of the year                   16,265    19,092    8,893
 Net cash and cash equivalents at the end of the year                   23    1,496     16,265    19,092

Consolidated statements of financial position

(in thousands of United States Dollars, unless indicated otherwise)

 As at December 31                        Note  2022      2021

 Assets
 Property, plant and equipment            17    178,983   149,102
 Exploration and evaluation asset         18    17,579    8,648
 Deferred tax asset                       16    202       194
 Total non-current assets                       196,764   157,944

 Inventories                              20    18,334    20,812
 Derivative financial assets              14.1  440       -
 Income tax receivable                    16    40        101
 Prepayments                              21    3,693     6,930
 Trade and other receivables              22    9,185     7,938
 Cash and cash equivalents                23    6,735     17,152
 Total current assets                           38,427    52,933
 Total assets                                   235,191   210,877

 Equity and liabilities
 Share capital                            24    83,471    82,667
 Reserves                                 25    137,801   137,779
 Retained loss                                  (50,222)  (59,150)
 Equity attributable to shareholders            171,050   161,296
 Non-controlling interests                27    22,409    19,260
 Total equity                                   193,459   180,556

 Liabilities
 Provisions                               28    2,958     3,294
 Deferred tax liabilities                 16    5,123     8,034
 Cash-settled share-based payment         12.1  1,029     974
 Lease liabilities                        19    181       331
 Total non-current liabilities                  9,291     12,633

 Cash-settled share-based payment         12.1  1,188     2,053
 Lease liabilities                        19    132       134
 Derivative financial liabilities         14.2  -         3,095
 Income tax payable                       16    1,324     1,562
 Trade and other payables                 29    17,454    9,957
 Loan notes payable                       30    7,104     -
 Overdraft                                23    5,239     887
 Total current liabilities                      32,441    17,688
 Total liabilities                              41,732    30,321
 Total equity and liabilities                   235,191   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
announcement .  Refer to section 10 of the MD&A for a discussion of
non-IFRS measures.

 

 2  (#_ftnref2) Refer to the technical report entitled "NI 43-101 Technical
Report on the Blanket Gold Mine, Zimbabwe" with effective date September 1,
2022 prepared by Minxcon (Pty) Ltd filed by the Company on SEDAR
(www.sedar.com) on March 13, 2023

 3  (#_ftnref3) Gold production will be derived from the measured mineral
resources set out in the technical report entitled "BILBOES GOLD PROJECT
FEASIBILITY STUDY" with effective date December 15, 2021 prepared by DRA
Projects (Pty) Ltd and filed by the Company on SEDAR on July 21, 2022

 4  (#_ftnref4) Refer to the technical report entitled "BILBOES GOLD PROJECT
FEASIBILITY STUDY" with effective date December 15, 2021 prepared by DRA
Projects (Pty) Ltd and filed by the Company on SEDAR on July 21, 2022

 5  (#_ftnref5) Refer to announcement by the Company dated February 6, 2023
entitled "Mineral Resources and Reserves Update at the Blanket Mine" together
with the technical report on Blanket Mine referred to at footnote 2 above

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