TIDMCMCL
RNS Number : 6140V
Caledonia Mining Corporation PLC
11 August 2022
Caledonia Mining Corporation Plc
Results for the Quarter ended June 30, 2022
(NYSE AMERICAN: CMCL; AIM: CMCL)
August 11, 2022: Caledonia Mining Corporation Plc ("Caledonia"
or the "Company") announces its operating and financial results for
the quarter and the six months ended June 30, 2022 (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 unaudited financial statements which are available on the
Company's website, and which have been filed on SEDAR.
Financial Highlights for the Quarter ended June 30, 2022
-- Gross revenues of $36.99 million, a 23.4 per cent increase on
the $29.98 million achieved in the second quarter of 2021 ("Q2
2021").
-- Gross profit of $17.9 million, a 28.8 per cent increase on the $13.9 million in Q2 2021.
-- EBITDA (excluding asset impairments, depreciation and net
foreign exchange gains) of $17.8 million, a 23.8 per cent increase
on the $14.0 million in Q2 2021. This represents EBITDA (excluding
asset impairments, depreciation and net foreign exchange gains) for
the six months ended June 30, 2022 of $31.5 million (H1 2021: $23.5
million).
-- On-mine cost of $692 per ounce (Q2 2021: $715 per ounce).
-- All-in sustaining cost ("AISC") [1] of $925 per ounce (Q2
2021: $901 per ounce). The 3 per cent increase to the comparable
quarter reflects the lower on-mine cost per ounce offset by higher
administrative costs.
-- Basic IFRS earnings per share ("EPS") of 87.7 cents (Q2 2021: 21.1 cents).
-- Adjusted EPS of 56.2 cents (Q2 2021: 62.6 cents).
-- Net cash from operating activities of $16.7 million (Q2 2021: $12.7 million).
-- Net cash and cash equivalents of $10.9 million (Q2 2021, $16.7 million).
-- Total dividend paid in the Quarter of 14 cents per share paid
in April 2022; a further dividend at the same rate of 14 cents per
share was paid in July 2022.
Operating Highlights
-- 20,091 ounces of gold were produced in the Quarter, 20 per
cent higher than the 16,710 ounces produced in Q2 2021 and a new
production record for any quarter.
-- 38,605 ounces were produced in the First Half, 29 per cent
higher than the 29,907 ounces produced in the first half of
2021.
Other highlights - Transaction to acquire the Bilboes gold
project
-- On 21 July 2022, Caledonia announced that it had signed an
agreement to purchase Bilboes Gold Limited, the parent company
which owns, through its Zimbabwe subsidiary, the Bilboes g old
project in Zimbabwe ("Bilboes" or the "Project") [2] . Subject to
satisfaction of the conditions to completion, the total
consideration for the acquisition will be 5,123,044 Caledonia
shares, representing approximately 28.5 per cent of Caledonia's
fully diluted equity, and a 1 per cent net smelter royalty ("NSR")
on the Project's revenues.
-- Bilboes hosts NI 43-101 compliant proven and probable mineral
reserves of 1.96 million ounces of gold in 26.6 million tonnes at a
grade of 2.29 g/t, measured and indicated mineral resources of 2.56
million ounces of gold in 35.2 million tonnes at a grade of 2.26
g/t and inferred mineral resources of 577,000 ounces of gold in 9.5
million tonnes at a grade of 1.89 g/t [3] .
-- The feasibility study which has been prepared by the vendors
indicates the potential for an open-pit gold mine producing an
average of 168,000 ounces per year over a 10-year life of mine.
Caledonia will prepare a feasibility study to identify the most
judicious way to commercialise the Project (with regard to the
availability of funding on acceptable terms).
Outlook
-- Increase production at Blanket Mine ("Blanket") to the target
of 80,000 ounces of gold per annum [4] , reduce operating costs and
increase the flexibility to undertake further development and
exploration, thereby safeguarding and enhancing Blanket's long-term
future.
-- Satisfy the conditions to enable the completion of the
acquisition of Bilboes Gold Limited and, thereafter, prepare a
feasibility study to identify the most judicious way to
commercialise the Project with regard to the availability of
funding on acceptable terms.
-- Restart the oxides operation at Bilboes under the terms of a
tribute arrangement with a view to creating a cash-generative
operation within approximately six months.
-- Upgrade the NI 43-101 compliant inferred mineral resources at
the Maligreen mining claims which are currently estimated to host
approximately 940,000 ounces of gold in 15.6 million tonnes at a
grade of 1.88g/t [5] .
-- Commission the 12MWac solar plant, which is expected to
provide 27 per cent of Blanket's total electricity demand.
-- Continue to evaluate other investment opportunities in the
Zimbabwe gold sector and elsewhere.
Commenting on the announcement, Mark Learmonth, Chief Executive
Officer, said:
"This has been a terrific quarter and, indeed, half year with
second quarter production of just over 20,000 ounces which set a
record for any quarter. The first half of 2022 exceeded our
expectations and we have now achieved our quarterly production
target. Excellent production, along with a higher gold price and
good cost control, has contributed to a 321% increase in IFRS
earnings per share and a 31% increase in net cash from operating
activities over the comparable quarter in 2021.
"In July, Caledonia announced that it had signed an agreement to
purchase Bilboes Gold Limited, which is the holding company for a
large, high-grade, open-pittable gold resource. We have followed
the progress of the project for several years and believe that
Bilboes is the premier gold development project in Zimbabwe, and
indeed one of the best gold development projects in Africa .
"The completion of the transaction is subject to several
conditions, but once achieved we can prepare a feasibility study to
identify the most judicious way to commercialise the project with
regard to the availability of funding on acceptable terms.
Caledonia also intends to re-start the oxides operation at Bilboes
under a tribute arrangement before completion of the transaction
with a view to creating a cash-generative operation within
approximately six months.
"Our immediate strategic focus continues to be on Blanket and we
are on track to meet our target production of between 73-80,000
ounces of gold for this year, with first half production of 38,605
ounces of gold. We will also continue to reduce our operating costs
and increase the flexibility to undertake further development and
exploration, thereby safeguarding and enhancing Blanket's long-term
future.
" The proposed acquisition of Bilboes also builds on the recent
acquisition of the Maligreen claims, where we continue to evaluate
the existing geological information and are focused on increasing
the confidence of the resource base. Caledonia will also consider
other investment opportunities in the Zimbabwe gold sector within
the constraints of its financing and management capacity.
" 2022 has been an outstanding year so far and I would like to
thank the team for their continued hard work."
Caledonia will host an online presentation and Q&A session
open to all investors on 12 August 2022 at 14:00 London Time
The Zoom details for this call are set out below.
Topic: Q2 2022 Results Call for Shareholders.
Please click the link below to join the webinar:
https://caledoniamining.zoom.us/j/95386976088?pwd=NDV4OFFaU2syMnNzeG42Y2FUcGswUT09
Webinar ID: 953 8697 6088
Passcode: 147538
International numbers available:
https://caledoniamining.zoom.us/u/afz b3xKSY
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)
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 (VFEX Sponsor
- Zimbabwe) Tel: +263 (242) 745 119/33/39
Lloyd Mlotshwa
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 Statement of Profit or Loss and Other
Comprehensive Income (unaudited)
($'000's) 3 months ended 6 months ended
June 30 June 30
2021 2022 2021 2022
Revenue 29,977 36,992 55,697 72,064
Royalty (1,503) (1,854) (2,792) (3,612)
Production costs (12,362) (14,502) (25,219) (28,861)
Depreciation (2,199) (2,639) (3,392) (4,702)
---------------- -------------- ------------ --------------
Gross profit 13,913 17,997 24,294 34,889
Other income 7 1 30 3
Other expenses (3,883) (490) (4,141) (1,283)
Administrative expenses (1,745) (2,908) (3,355) (5,279)
Net foreign exchange (loss)/gain (345) 4,172 (72) 5,081
Cash-settled share-based
expense (31) 57 (183) (310)
Equity-settled share-based
expense - - - (82)
Derivative financial instrument
gain/(expense) 7 41 (107) (1,697)
---------------- -------------- ------------ --------------
Operating profit 7,923 18,870 16,466 31,322
Net finance costs (223) (175) (341) (291)
---------------- -------------- ------------ --------------
Profit before tax 7,700 18,695 16,125 31,031
Tax expense (3,893) (5,314) (6,895) (10,033)
---------------- -------------- ------------ --------------
Profit for the period 3,807 13,381 9,230 20,998
---------------- -------------- ------------ --------------
Other comprehensive income
Items that are or may
be reclassified to profit
or loss
Exchange differences on
translation of foreign
operations 383 (852) 181 (159)
Total comprehensive income
for the period 4,190 12,529 9,411 20,839
---------------- -------------- ------------ --------------
Profit attributable to:
Owners of the Company 2,694 11,378 7,244 17,318
Non-controlling interests 1,113 2,003 1,986 3,680
---------------- -------------- ------------ --------------
Profit for the period 3,807 13,381 9,230 20,998
---------------- -------------- ------------ --------------
Total comprehensive income
attributable to:
Owners of the Company 3,077 10,526 7,425 17,159
Non-controlling interests 1,113 2,003 1,986 3,680
---------------- -------------- ------------ --------------
Total comprehensive income
for the period 4,190 12,529 9,411 20,839
---------------- -------------- ------------ --------------
Earnings per share (cents)
Basic 21.1 87.7 58.4 132.3
Diluted 21.1 87.7 58.4 132.3
Adjusted earnings per
share (cents)
Basic 62.6 56.2 114.2 118.8
Dividends declared per
share (cents) 12.0 14.0 23.0 28.0
----------------------------------- ---------------- -------------- ------------ --------------
Condensed Consolidated Statement of Cash Flows
(unaudited)
($'000's)
3 months ended 6 months ended
June 30 June 30
2021 2022 2021 2022
Cash flows from operating activities
Cash generated from operations 14,987 18,341 17,537 30,185
Interest paid (124) (59) (247) (89)
Tax paid (2,134) (1,567) (2,598) (3,226)
---------- ---------------- ------------ ------------------
Net cash from operating activities 12,729 16,715 14,692 26,870
Cash flows used in investing
activities
Acquisition of property, plant
and equipment (7,425) (13,011) (13,769) (22,745)
Acquisition of exploration and
evaluation assets (784) (412) (974) (636)
Realisation of Gold ETF 1,083 - 1,083 -
Proceeds from disposal of subsidiary - - 340 -
---------- ---------------- ------------ ------------------
Net cash used in investing activities (7,126) (13,423) (13,320) (23,381)
Cash flows from financing activities
Dividends paid (1,814) (2,700) (3,506) (4,488)
Repayment of gold loan - (3,698) - (3,698)
Acquisition of call option - (176) - (176)
Term loan repayments (102) - (206) -
Payment of lease liabilities (33) (39) (65) (79)
---------- ---------------- ------------ ------------------
Net cash used in financing activities (1,949) (6,613) (3,777) (8,441)
Net increase/(decrease) in cash
and cash equivalents 3,654 (3,321) (2,404) (4,952)
Effect of exchange rate fluctuations
on cash and cash equivalents (12) (247) (18) (451)
Net cash and cash equivalents
at beginning of the period 13,027 14,430 19,092 16,265
Net cash and cash equivalents
at end of the period 16,669 10,862 16,669 10,862
------------------------------------------------ ---------- ---------------- ------------ ------------------
Summarised Consolidated Statements of Financial Position (unaudited)
($'000's) As at Dec 31 Jun 30
2021 2022
Total non-current assets 157,944 179,354
Inventories 20,812 20,535
Prepayments 6,930 3,518
Trade and other receivables 7,938 7,748
Income tax receivable 101 182
Cash and cash equivalents 17,152 10,862
Total assets 210,877 222,199
-----------------
Total non-current liabilities 12,633 7,256
Lease liabilities - short
term portion 134 127
Trade and other payables 9,957 12,761
Derivative financial liabilities 3,095 122
Income tax payable 1,562 3,327
Overdraft 887 -
Cash-settled share-based payments - short term
portion 2,053 813
----------------- ---------------
Total liabilities 30,321 24,405
----------------- ---------------
Total equity 180,556 197,793
----------------- ---------------
Total equity and liabilities 210,877 222,199
---------------------------------- ---------------------------------------- ----------------- ---------------
[1] 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] See press release dated July 21, 2022 entitled " Transaction
to acquire the Bilboes gold project in Zimbabwe".
[3] Refer to the technical report entitled "BILBOES GOLD PROJECT
FEASIBILITY STUDY" dated with effective date 15 December 2021
prepared by DRA Projects Africa Holdings (Pty) Ltd and filed by the
Company on SEDAR (www.sedar.com) on July 21, 2022.
[4] 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.
[5] 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.
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END
IR FLFVETLIILIF
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