TIDMCMCL
RNS Number : 1687L
Caledonia Mining Corporation PLC
12 May 2022
Caledonia Mining Corporation Plc
Results for the Quarter ended March 31, 2022
Notice of Management Conference Call
(NYSE AMERICAN: CMCL; AIM: CMCL; VFEX: CMCL)
St Helier, May 12, 2022: Caledonia Mining Corporation Plc
("Caledonia" or the "Company") announces its operating and
financial results for the quarter ended March 31, 2022 (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
have been filed on SEDAR.
Financial Highlights
-- Gross revenues of $35.1 million (Q1 2021: $25.7 million).
Higher revenues reflect a 40 per cent increase in production and a
six per cent increase in the realised gold price. Revenues include
the sale proceeds of 442 ounces (net) of gold in
work-in-progress.
-- EBITDA of $14.6 million (Q1 2021: $9.7 million).
-- On-mine cost [1] of $698 per ounce (Q1 2021: $836 per ounce).
Lower cost per ounce was primarily due to higher production, which
means that fixed costs are spread across more ounces, improved
grade and reduced use of diesel generators.
-- All-in sustaining cost(1) of $968 per ounce (Q1 2021: $1,044 per ounce).
-- Adjusted earnings per share(1) of 62.5 cents (Q1 2021: 51.6 cents).
-- Net cash from operating activities of $10.2 million (Q1 2021: $2.0 million).
-- Net cash and cash equivalents of $14.4 million (Q1 2021: $13.0 million).
-- Dividend paid in the Quarter of 14 cents per share, a 27 per
cent increase from 11 cents per share paid in Q1 2021. The
quarterly dividend has been maintained since October 2021.
Safety
-- Regrettably, as previously reported, a fatal accident
occurred on February 21, 2022. The Directors and management of
Caledonia and Blanket Mine ("Blanket") express their sincere
condolences to the family and colleagues of the deceased. Caledonia
and Blanket take the safety of its employees very seriously and,
accordingly, measures have been taken to reinforce adherence to
prescribed safety procedures.
Operating Highlights
-- 18,515 ounces of gold produced in the Quarter (Q1 2021:
13,197 ounces). The 40 percent increase in production was due to
higher tonnes milled, improved grade and better metallurgical
recoveries.
-- 6,797 ounces of gold were produced in April 2022 which is an
annualised production rate of approximately 81,500 ounces.
-- The Central Shaft, which was commissioned in March 2021, is
currently hoisting development waste, leaving the No. 4 Shaft free
to hoist ore.
-- An ore stockpile of approximately 14,000 tonnes, containing
approximately 1,500 ounces of recoverable gold, was accumulated
during the Quarter. This is not included in the gold production for
the Quarter.
-- The 12MWac solar project is now in the final phase of
construction and is expected to be operational within the next few
months.
Outlook
-- 2022 gold production guidance of between 73,000 and 80,000 ounces [2] .
Steve Curtis, Chief Executive Officer, commented:
"The first quarter of 2022 was an excellent start to 2022. Gold
production in the Quarter represents a new production record for
any first quarter. Production in April showed a further
improvement: production of almost 6,800 ounces in the month
reflects an annualised production rate that is marginally above the
top end of our guidance range for 2022 of 73,000 to 80,000 ounces
of gold. The higher production reflects increased tonnes milled,
better grade and improved recovery. Production in the Quarter
excludes approximately 1,500 ounces of recoverable gold contained
in an ore stockpile which accumulated during the Quarter as we
await the commissioning of an additional mill later in the
year.
"Operating costs were well controlled. The on-mine cost per
ounce fell by 16 per cent compared to the first quarter of 2021.
The reduction was because of higher production, which means that
fixed costs are spread over more production ounces; costs were also
helped by reduced diesel consumption following the installation of
equipment in late 2021 which allows us to manage the poor-quality
grid power.
"All-in sustaining costs per ounce were also 7 per cent lower
than the first quarter of 2021.
"Following Caledonia's successful secondary listing on the
Victoria Falls Stock Exchange in late 2021, we have increased the
proportion of revenues received in USD dollars. This, in
conjunction with other arrangements, means that we are not
accumulating excessive local currency balances. We have a strong,
long-term working relationship with the Reserve Bank of Zimbabwe
and Fidelity Printers and Refiners (the Zimbabwe government-owned
gold refiner) and we are delighted that the payment process for
gold deliveries and the regulations that manage the flow of funds
from Zimbabwe continue to operate smoothly.
"The Central Shaft, which was commissioned in March 2021, is
operating as planned. The shaft is now hoisting waste material
arising from the final development to connect the shaft to the
production areas. This has relieved pressure on the Number 4 Shaft
which can focus on hoisting ore until Central shaft takes over this
role later in the year. We are confident we will achieve our
production guidance for 2022 of 73,000 to 80,000 ounces.
"Safety remains our primary concern, and I am sorry to report
that, after an extended period without any fatal accident, in
February 2022, a vehicle accident underground resulted in the death
of one employee. We have re-doubled our efforts to ensure that we
produce gold as safely as possible.
"Caledonia's immediate strategic focus is to convert the
commissioning of Central Shaft project into higher production,
lower costs and increased cash generation. We have made an
excellent start in each of these objectives.
"We continue to evaluate further investment opportunities in the
gold sector in Zimbabwe, with our long-term vision of becoming a
mid-tier, multi-asset gold producer. However, we are highly
disciplined in our approach: during the Quarter we decided not to
exercise the option over the Connemara North exploration property
because our further evaluations suggested that it does not meet our
commercial objectives. We continue to evaluate historical
information at the Maligreen exploration property with a view to
publishing a revised resource statement."
Conference Call Details
A presentation of the results for the Quarter and outlook for
Caledonia is available on Caledonia's website
(www.caledoniamining.com). Management will host a conference call /
webinar at 3pm British Summer Time on May 16, 2022.
Details for the call are as follows:
When: May 16, 2022 at 3pm (BST)
Topic: Q1 Results Call for Shareholders
Register in advance for this webinar:
https://caledoniamining.zoom.us/webinar/register/WN_MDZ7d6uRSgatW555w2lnow
After registering, you will receive a confirmation email
containing information about joining the webinar.
Enquiries:
Caledonia Mining Corporation Plc
Mark Learmonth Tel: +44 1534 679 800
Camilla Horsfall Tel: +44 7817 841 793
Cenkos (Nomad and Joint Broker)
Neil McDonald Tel: +44 131 220 9771
Pearl Kelie Tel: +44 131 220 9775
Liberum Capital Limited (Joint Tel: +44 20 3100 2000
Broker)
Scott Mathieson/Kane Collings
BlytheRay Financial PR (UK)
Tim Blythe/Megan Ray Tel: +44 207 138 3204
3PPB (Financial PR, North America)
Patrick Chidley Tel: +1 917 991 7701
Paul Durham Tel: +1 203 940 2538
Curate Public Relations (Zimbabwe)
Debra Tatenda Tel: +263 77802131
IH Securities (Private) Limited Tel: +263 (242) 745 119/33/39
(VFEX Sponsor - Zimbabwe)
Dzika Dhana
Note: The information contained within this announcement is
deemed by the Company to constitute inside information under 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 Statement of Profit or Loss and Other Comprehensive
Income (unaudited)
($'000's) 3 months ended
March 31
2021 2022
Revenue 25,720 35,072
Royalty (1,289) (1,758)
Production costs (12,857) (14,359)
Depreciation (1,193) (2,063)
---------- ---------
Gross profit 10,381 16,892
Other income 23 2
Other expenses (258) (793)
Administrative expenses (1,610) (2,371)
Net foreign exchange gain 273 909
Cash-settled share-based expense (152) (367)
Equity-settled share-based expense - (82)
(1,738
Derivative financial instrument expenses (114) )
---------- ---------
Operating profit 8,543 12,452
Net finance costs (118) (116)
---------- ---------
Profit before tax 8,425 12,336
(3,002
Tax expense ) (4,719)
---------- ---------
Profit for the period 5,423 7,617
---------- ---------
Other comprehensive income
Items that are or may be reclassified to
profit or loss
Exchange differences on translation of foreign
operations (202) 693
Total comprehensive income for the period 5,221 8,310
---------- ---------
Profit attributable to:
Owners of the Company 4,550 5,940
Non-controlling interests 873 1,677
---------- ---------
Profit for the period 5,423 7,617
---------- ---------
Total comprehensive income attributable
to:
Owners of the Company 4,348 6,633
Non-controlling interests 873 1,677
---------- ---------
Total comprehensive income for the period 5,221 8,310
---------- ---------
Earnings per share (cents)
Basic 37.3 44.6
Diluted 37.2 44.6
Adjusted earnings per share (cents)
Basic 51.6 62.5
Dividends declared per share (cents) 11.0 14.0
--------------------------------------------------------- ---------- ---------
Condensed Consolidated Statement of Cash Flows
(unaudited)
($'000's) 3 months ended
March 31
2021 2022
Cash flows from operating activities
Cash generated from operations 2,550 11,844
Interest paid (123) (30)
Tax paid (464) (1,659)
---------- --------
Net cash from operating activities 1,963 10,155
Cash flows used in investing activities
Acquisition of property, plant and
equipment (6,344) (9,734)
Acquisition of exploration and evaluation
assets (190) (224)
Proceeds from disposal of subsidiary 340 -
---------- --------
Net cash used in investing activities (6,194) (9,958)
Cash flows from financing activities
Dividends paid (1,692) (1,788)
Term loan repayments (104) -
Payment of lease liabilities (32) (40)
Net cash used in financing activities (1,828) (1,828)
Net decrease in cash and cash equivalents (6,059) (1,631)
Effect of exchange rate fluctuations
on cash and cash equivalents (6) (204)
Net cash and cash equivalents at
beginning of the period 19,092 16,265
Net cash and cash equivalents at
end of the period 13,027 14,430
----------------------------------------------------------------- ---------- --------
Summarised Consolidated Statements of Financial Position
($'000's) As
at Dec 31 Mar 31
2021 2022
Total non-current assets 157,944 168,063
Inventories 20,812 20,297
Prepayments 6,930 4,393
Trade and other receivables 7,938 10,215
Income tax receivable 101 37
Cash and cash equivalents 17,152 15,286
Total assets 210,877 218,291
--------
Total non-current liabilities 12,633 11,629
Lease liabilities - short term portion 134 136
Trade and other payables 9,957 9,743
Derivative financial liabilities 3,095 4,037
Income tax payable 1,562 3,108
Overdraft 887 856
Cash-settled share-based payments
- short term portion 2,053 818
-------- -------------
Total liabilities 30,321 30,327
-------- -------------
Total equity 180,556 187,964
-------- -------------
Total equity and liabilities 210,877 218,291
------------------------------------------- --------- ----- -------- -------------
[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 ( www.sedar.com ) on May 26,
2021.
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