Caledonia Mining Corporation Plc ("Caledonia" or "the
Company") (NYSE AMERICAN: CMCL; AIM: CMCL; VFEX: CMCL)
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 cost1 per ounce of $993 at
Blanket in the Quarter was virtually unchanged from Q1 2023’s
amount of $991.
- All-in sustaining cost (“AISC”) 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”)
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
After registering, you will receive a confirmation email
containing information about joining the webinar.
Enquiries:
Caledonia Mining Corporation PlcMark
LearmonthCamilla Horsfall |
Tel: +44 1534 679 800Tel:
+44 7817 841 793 |
Cavendish Capital Markets
Limited (Nomad and Joint Broker)Adrian Hadden Pearl
Kellie |
Tel: +44 207 397 1965Tel:
+44 131 220 9775 |
Liberum Capital Limited
(Joint Broker)Scott Mathieson/ Matt Hogg |
Tel: +44 20 3100 2000 |
Camarco, Financial PR/ IR
(UK)Gordon PooleJulia TilleyElfie Kent |
Tel: +44 20 3757 4980 |
3PPB (Financial PR, North
America)Patrick ChidleyPaul Durham |
Tel: +1 917 991 7701Tel: +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 |
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 312024 |
Dec 312023 |
|
|
|
|
|
|
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 of the
MD&A for a discussion of non-IFRS measures.