TIDMCMCL
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]) 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]) .
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
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]) -
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
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 subsidiary - - (2,109) - -
-------- -------- -------- -------- --------
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 Dec
at 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] 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 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] 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 ) on May 26,
2021.
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