TIDMCMCL
RNS Number : 3750I
Caledonia Mining Corporation PLC
12 August 2021
Caledonia Mining Corporation Plc
Results for the Quarter ended June 30, 2021
(NYSE AMERICAN: CMCL; AIM: CMCL)
August 12, 2021: Caledonia Mining Corporation Plc ("Caledonia"
or the "Company") announces its operating and financial results for
the quarter and the six months ended June 30, 2021 (the "Quarter"
and "First Half" respectively). Further information on the
financial and operating results for the Quarter and First Half can
be found in the management discussion and analysis ("MD&A") and
the un-audited financial statements which are available on the
Company's website, and which have been filed on SEDAR.
Financial Highlights for the Quarter
-- Gross revenues of $30.0 million, a 31 per cent increase on
the $22.9 million achieved in the second quarter of 2020 ("Q2
2020").
-- Gross profit of $13.9 million, a 51 per cent increase on the $9.2 million in Q2 2020.
-- EBITDA (excluding asset impairments, net foreign exchange
gains and losses and export incentives) of $ 14.0 million, a 103
per cent increase on the $6.9 million in Q2 2020.
-- On-mine cost of $715 per ounce (Q2 2020, $811 per ounce).
-- All-in sustaining cost ("AISC") 1 excluding export incentives
of $933 per ounce (Q2 2020, $1,075 per ounce).
-- Basic IFRS earnings per share ("EPS") of 21.1 cents (Q2 2020, 43.1 cents).
-- Adjusted EPS of 62.6 cents (Q2 2020, 36.8 cents).
-- Net cash from operating activities of $12.7 million (Q2 2020, $4.0 million).
-- Net cash and cash equivalents of $16.7 million (Q2 2020, $11.6 million).
-- Total dividend paid in the Quarter of 12 cents per share in
April; a further dividend at the increased rate of 13 cents per
share was paid in July.
Operating Highlights
-- 16,710 ounces of gold produced in the Quarter, 24 per cent
higher than the 13,499 ounces produced in Q2 2020 and a new
production record for a second quarter.
-- 29,907 ounces produced in the First Half, eight per cent
higher than the 27,732 ounces produced in the first half of
2020.
-- Over 165,000 tonnes of ore were mined and milled in the
Quarter which is a new production record for any quarter and
reflects the contribution of the Central Shaft which was
commissioned at the end of March 2021 and the build-up towards the
target of 80,000 ounces per annum from 2022 onwards 2 .
Outlook
-- Production in July was 5,995 ounces, which is a further
increase in average monthly production and demonstrates that
Blanket is on-track to achieve its production guidance of 61,000 -
67,000 ounces for 2021.
-- On-mine cost guidance for 2021 is in the range of $740 to
$815 per ounce; guidance for AISC is $985 to $1,080 per ounce.
-- Further to the Company's announcement on 11 December 2020
that it had acquired an option over the Glen Hume property,
Caledonia has decided not to exercise this option over the Glen
Hume property due to disappointing exploration results. Caledonia
will conduct exploration at Connemara North, the other optioned
property in Zimbabwe as announced on 17 December 2020. Caledonia
will consider further investment opportunities in Zimbabwe and
elsewhere.
Caledonia will host an online presentation and Q&A session
open to all investors on 12 of August 2021 at 16:30 GMT (17:30
British Summer Time; 13.30 New York; 18:30 European)
The Zoom details for this call are set out below:
Details:
Please click the link below to join the webinar:
https://caledoniamining.zoom.us/j/92437639930?pwd=QnhuRE5FTDZYUWl0a05nSmFRREt0dz09
Passcode: 717117
Or Telephone:
Dial (for higher quality, dial a number based on your current
location):
US: +1 312 626 6799 or +1 346 248 7799 or +1 646 558 8656 or +1
669 900 9128 or +1 253 215 8782 or +1 301 715 8592
Webinar ID: 924 3763 9930
Passcode: 717117
International numbers available:
https://caledoniamining.zoom.us/u/adZFCW31rd
Commenting on the announcement, Steve Curtis, Chief Executive
Officer, said:
"Over 165,000 tonnes were milled in the Quarter which is a new
record for Blanket and reflects the contribution of Central Shaft
which is now operational.
"Higher production, lower costs and a higher gold price resulted
in a significant increase in the underlying profitability of our
business with gross profit increasing by 51 per cent compared to
the comparable quarter in 2020. Net profit was adversely affected
by the impairment of the Glen Hume exploration asset following the
Board's decision not to proceed further with this project because
the property does not meet Caledonia's strategic requirements in
terms of size, grade and width. EBITDA, excluding foreign exchange
gains and losses, export incentives and asset impairments,
increased over 100 per cent from $6.9 million in Q2 2020 to $14.0
million in the Quarter.
"The increased production meant that cash generated by
operations was almost $15.0 million for the Quarter, compared to
$2.5 million in the preceding quarter and $5.4 million in the
comparable quarter.
"Excellent production was achieved without compromising on
safety. During the Quarter Blanket passed the milestone of
achieving two million fatality-free shifts.
"Production in July was slightly less than 6,000 ounces of gold,
which demonstrates that Blanket continues to ramp-up production
towards the target rate of 6,700 ounces per month that is required
to achieve the production target of 80,000 ounces per annum from
2022 .
"Although COVID-19 had no discernible effect on production in
the Quarter, management has re-introduced strict access controls to
the mine and the mine village to limit the rate of transmission of
the virus. Blanket is also in the process of vaccinating its
workforce and their families.
"The solar project, which is expected to provide approximately
27 per cent of Blanket's average daily electricity usage is now in
the procurement phase and project completion is expected in April
2022 .
"In April, the Company paid a further increased quarterly
dividend of 12 cents per share, then in July declared a quarterly
dividend of 13 cents per share, paid at the end of July. This was
the sixth increased quarterly dividend and an 89 per cent increase
from 6.875 cents paid in October 2019.
"This has been a strong Quarter and these results have left us
well placed to achieve our guidance of between 61,000-67,000 ounces
for the year. Our immediate strategic focus continues to be to
increase production to 80,000 ounces in 2022, while undertaking
further exploration and development with the objective of extending
the life of mine beyond 2034 thereby safeguarding and enhancing
Blanket's long-term future. Caledonia will also evaluate further
investment opportunities in Zimbabwe and elsewhere."
1 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 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 on May 26, 2021. 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.
For further information please contact:
Caledonia Mining Corporation Plc
Mark Learmonth Tel: +44 1534 679 802
Camilla Horsfall Tel: +44 7817 841793
WH Ireland
Adrian Hadden/James Sinclair-Ford Tel: +44 20 7220 1751
Blytheweigh Tel: +44 207 138 3204
Tim Blythe/Megan Ray
3PPB
Patrick Chidley Tel: +1 917 991 7701
Paul Durham Tel: +1 203 940 2538
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 Unaudited Consolidated Statement of Profit or Loss and
Other Comprehensive Income
($'000's) 3 months ended 6 months ended
June 30 June 30
2020 2021 2020 2021
Revenue 22,913 29,977 46,515 55,697
Royalty (1,146) (1,503) (2,328) (2,792)
Production costs (11,451) (12,362) (22,138) (25,219)
Depreciation (1,141) (2,199) (2,314) (3,392)
--------- --------- --------- ---------
Gross profit 9,175 13,913 19,735 24,294
Other income 2,791 7 4,709 30
Other expenses (1,314) (3,883) (1,522) (4,141)
Administrative expenses (1,275) (1,745) (2,822) (3,355)
Net foreign exchange gain (loss) 1,486 (345) 3,709 (72)
Cash-settled share-based payment (762) (31) (946) (183)
Fair value losses on derivative
assets (113) 7 (148) (107)
Results from operating activities 9,988 7,923 22,715 16,466
Net finance costs (129) (223) (267) (341)
--------- --------- --------- ---------
Profit before tax 9,859 7,700 22,448 16,125
Tax expense (3,507) (3,893) (6,417) (6,895)
--------- --------- --------- ---------
Profit for the period 6,352 3,807 16,031 9,230
--------- --------- --------- ---------
Other comprehensive income
Items that are or may be reclassified
to profit or loss
Exchange differences on translation
of foreign operations 293 383 (1,058) 181
Profit attributable to: 6,645 4,190 14,973 9,411
--------- --------- ---------
Shareholders of the Company 5,134 2,694 13,374 7,244
Non-controlling interests 1,218 1,113 2,657 1,986
--------- --------- --------- ---------
Profit for the period 6,352 3,807 16,031 9,230
--------- --------- --------- ---------
Total comprehensive income attributable
to:
Shareholders of the Company 5,427 3,077 12,316 7,425
Non-controlling interest 1,218 1,113 2,657 1,986
--------- --------- --------- ---------
Total comprehensive income for the
period 6,645 4,190 14,973 9,411
--------- --------- --------- ---------
Earnings per share (cents)
Basic 43.1 21.1 114.3 58.4
Diluted 43.0 21.1 114.1 58.4
Adjusted earnings per share (cents)
Basic 36.8 62.6 93.5 114.2
Dividends declared per share (cents) 16.0 12.0 23.5 23.0
Summarised Consolidated Statements of Financial Position (unaudited)
($'000's) As at Dec 31 Jun 30
2020 2021
Total non-current assets 133,334 140,925
Inventories 16,798 15,625
Prepayments 1,974 4,827
Trade and other receivables 4,962 9,306
Income tax receivable 76 179
Cash and cash equivalents 19,092 16,669
Derivative financial assets 1,184 -
Assets held for sale 500 500
-------- ------------
Total assets 177,920 188,031
-------- ------------
Total non-current liabilities 9,913 11,781
Loans and borrowings - short term
portion 408 178
Lease liabilities - short term portion 61 104
Trade and other payables 8,664 8,968
Income taxes payable 495 1,497
Cash-settled share-based payment
- short term portion 336 1,555
-------- ------------
Total liabilities 19,877 24,083
-------- ------------
Total equity 158,043 163,948
-------- ------------
Total equity and liabilities 177,920 188,039
------------------------------------------- ------ ---------- -------- ------------
Condensed Consolidated Statement of Cash Flows (unaudited)
($'000's)
3 months ended 6 months ended
June 30 June 30
2020 2021 2020 2021
Cash flows from operating activities
Cash generated from operations 5,413 14,987 16,371 17,537
Net interest paid (123) (124) (263) (247)
Tax paid (1,315) (2,134) (2,034) (2,598)
-------- -------- -------- ---------
Net cash from operating activities 3,975 12,729 14,074 14,692
Cash flows used in investing activities
Acquisition of property, plant and equipment (3,228) (7,425) (7,921) (13,769)
Acquisition of exploration and evaluation
assets - (784) (974)
(Acquisition)/Realisation of Gold ETF (1,058) 1,083 (1,058) 1,083
Proceeds from disposal of subsidiary - - 900 340
-------- -------- -------- ---------
Net cash used in investing activities (4,286) (7,126) (8,079) (13,320)
Cash flows from financing activities
Dividends paid (1,012) (1,814) (1,981) (3,506)
Repayment of term loan facility - (102) - (206)
Payment of lease liabilities (32) (33) (57) (65)
Receipt from share options exercised 30 - 30 -
Net cash used in financing activities (1,014) (1,949) (2,008) (3,777)
Net (decrease)/increase in cash and
cash equivalents (1,325) 3,654 3,987 (2,404)
Effect of exchange rate fluctuations
on cash held (861) (12) (1,241) (18)
Net cash and cash equivalents at beginning
of the period 13,825 13,027 8,893 19,092
-------- -------- -------- ---------
Net cash and cash equivalents at end
of the period 11,639 16,669 11,639 16,669
----------------------------------------------- -------- -------- -------- ---------
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END
IR SFUEFFEFSELA
(END) Dow Jones Newswires
August 12, 2021 02:00 ET (06:00 GMT)
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