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Caledonia Mining Corporation Plc Results for the Quarter ended June 30, 2024; Details of Investor Presentation

ST HELIER, Jersey, Aug. 12, 2024 (GLOBE NEWSWIRE) — 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 June 30, 2024 (the “Quarter”). Further information on the financial and operating results for the Quarter and the six months ended June 30, 2024 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 on SEDAR+.   

Financial Highlights for the Quarter

Operating Highlights for the Quarter

Dividend

Outlook

Chief Executive Officer, Mark Learmonth, said:

“This has been an excellent quarter, during which profitability benefitted from higher gold production, a higher gold price and lower costs per ounce. With today’s results, we remain on track to achieve our production and cost guidance for the year.

“I was delighted that the 2023 drilling campaign resulted in a significant increase to Blanket’s mineral resources and mineral reserves estimates as well as an increase in Blanket’s life of mine. A 10-year mine life, based on reserves, indicates the robustness of the orebodies at Blanket. Management anticipates that Blanket’s mine life should extend past 2040 given past successful conversion of inferred mineral resources.

“During the Quarter, the board took the decision to proceed with the single-phase development option for the Bilboes Sulphide Project. The results of the PEA indicate production of 1.5 million ounces of gold over a 10-year life of mine at an all-in sustaining cost of $968 per ounce. As such, Bilboes has the potential to almost triple Caledonia’s gold production to over 200,000 ounces per annum, in combination with production from Blanket.

“In May, we were delighted to welcome James Mufara as Chief Operating Officer. James joins us at a pivotal moment in Caledonia’s development and the team is already benefiting from his wealth of experience.

“Caledonia remains well positioned to deliver continued returns to shareholders. I am very excited by the opportunity we have to evolve our business, which we believe will generate significant long term shareholder value.”

Caledonia will host an online investor presentation and Q&A session on August 12, 2024 at 14:00 London Time

When: Aug 12, 2024 02:00 PM London

Topic: Q2 2024 Results Call for Investors

Register in advance for this webinar:

https://caledoniamining.zoom.us/webinar/register/WN_6nZkgdqIQ4SXIdf7a_CLxg

Enquiries:

Caledonia Mining Corporation Plc
Mark Learmonth
Camilla Horsfall
 
Tel: +44 1534 679 800
Tel: +44 7817 841 793
   
Cavendish Capital Markets Limited (Nomad and Joint Broker)
Adrian Hadden
Pearl Kellie
 
Tel: +44 207 397 1965
Tel: +44 131 220 9775
   
Panmure Liberum Limited (Joint Broker)
Scott Mathieson
Matt Hogg

Tel: +44 20 3100 2000

   
Camarco, Financial PR (UK)
Gordon Poole
Julia Tilley
Elfie Kent
 

Tel: +44 20 3757 4980

   
3PPB (Financial PR, North America)
Patrick Chidley
Paul Durham
 
Tel: +1 917 991 7701
Tel: +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

Craig James Harvey, MGSSA, MAIG, Caledonia Vice President, Technical Services, has reviewed and approved the scientific and technical information contained in this news release. Craig James Harvey is a “Qualified Person” as defined by each of (i) the Canadian Securities Administrators’ National Instrument 43-101 – Standards of Disclosure for Mineral Projects and (ii) sub-part 1300 of Regulation S-K of the U.S. Securities Act.

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 and cost guidance, estimates of future/targeted production rates, our plans and timing regarding further exploration and drilling and development, the development of the Bilboes Sulphide Project and the results of the PEA, and the continuation of dividend payments. 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 June 30 6 Months ended June 30
      2024   2023   2024   2023  
Revenue   50,107   37,031   88,635   66,466  
Royalty   (2,475)   (1,963)   (4,409)   (3,443)  
Production costs   (20,460)   (20,726)   (39,420)   (40,576)  
Depreciation   (4,239)   (3,409)   (8,058)   (5,664)  
Gross profit
  22,933   10,933   36,748   16,783  
Net foreign exchange loss   (2,014)   (3,610)   (6,153)   (2,077)  
Administrative expenses   (3,664)   (3,183)   (6,275)   (9,122)  
Net derivative financial instrument expenses   (174)   (54)   (476)   (488)  
Equity-settled share-based expense   (305)   (221)   (506)   (331)  
Cash-settled share-based expense   (4)   9   (57)   (271)  
Other expenses   (664)   (1,461)   (1,264)   (2,099)  
Other income   185   168   349   186  
Operating profit
  16,293   2,581   22,366   2,581  
Net finance costs   (794)   (1,057)   (1,520)   (1,824)  
Profit before tax
  15,499   1,524   20,846   757  
Tax expense   (5,151)   (1,273)   (7,681)   (4,775)  
Profit (loss) for the period
  10,348   251   13,165   (4,018)  
             
Other comprehensive income
         
Items that are or may be reclassified to profit or loss
   
Exchange differences on translation of foreign operations   178   (330)   34   (699)  
Total comprehensive income for the period
  10,526   (79)   13,199   (4,717)  
             
Profit (loss) attributable to:
         
Owners of the Company   8,429   (513)   10,560   (5,542)  
Non-controlling interests   1,919   764   2,605   1,524  
Profit (loss) for the period
  10,348   251   13,165   (4,018)  
             
Total comprehensive income attributable to:
         
Owners of the Company   8,607   (843)   10,594   (6,241)  
Non-controlling interests   1,919   764   2,605   1,524  
Total comprehensive income for the period
10,526   (79)   13,199   (4,717)  
             
Earnings (loss) per share ($)
         
Basic earnings (loss) per share   0.43   (0.01)   0.53   (0.31)  
Diluted earnings (loss) per share   0.43   (0.01)   0.53   (0.31)  
Adjusted earnings (loss) per share ($)
         
Basic   0.51   0.10   0.78   (0.17)  
Dividends paid per share ($)   0.14   0.14   0.28   0.28  
                     
 
Condensed Consolidated Statements of Financial Position (Unaudited)
($’000’s) As at
            Jun 30
2024
      Dec 31
2023
 
                
Total non-current assets
      275,743       274,074  
Income tax receivable       274       1,120  
Inventories       20,401       20,304  
Derivative financial assets       20       88  
Trade and other receivables       7,882       9,952  
Prepayments       5,287       2,538  
Cash and cash equivalents       15,412       6,708  
Assets held for sale       13,484       13,519  
Total assets
      338,503       328,303  
Total non-current liabilities
      25,280       23,978  
Cash-settled share-based payments – short term portion       454       920  
Income tax payable       4,152       10  
Lease liabilities – short term portion       114       167  
Loan note instruments – short term portion       855       665  
Trade and other payables       18,803       20,503  
Overdraft and term loans       16,778       17,740  
Liabilities associated with assets held for sale       93       128  
Total liabilities
      66,529       64,111  
Total equity
      271,974       264,192  
Total equity and liabilities
      338,503       328,303  
Condensed Consolidated Statements of Cash Flows (Unaudited)
($’000’s)  
  3 months ended June 30 6 months ended June 30
  2024   2023   2024   2023  
         
Cash inflow from operations 20,988   2   27,523   666  
Interest received 3   4   9   9  
Finance costs paid (710)   (1,231)   (1,283)   (1,431)  
Tax paid (1,195)   (1,001)   (2,276)   (2,346)  
Net cash inflow (outflow) from operating activities 19,086   (2,226)   23,973   (3,102)  
         
Cash flows used in investing activities        
Acquisition of property, plant and equipment (6,897)   (6,009)   (10,638)   (10,602)  
Acquisition of exploration and evaluation assets (733)   (139)   (1,163)   (283)  
Acquisition of put options (168)   (811)   (408)   (811)  
Net cash used in investing activities (7,798)   (6,959)   (12,209)   (11,696)  
         
Cash flows from financing activities        
Dividends paid (2,912)   (2,893)   (5,632)   (5,317)  
Payment of lease liabilities (38)   (35)   (75)   (72)  
Shares issued – equity raise (net of transaction cost)   4,834     15,658  
Proceeds from loans and borrowings 2,032     2,032    
Loan note instrument – Motapa payment   (1,288)     (6,687)  
Loan note instrument – solar bond issue receipts (net of transaction cost) 1,939   2,500   1,939   7,000  
Net cash from (used in) financing activities 1,021   3,118   (1,736)   10,582  
         
Net increase (decrease) in cash and cash equivalents 12,309   (6,067)   10,028   (4,216)  
Effect of exchange rate fluctuations on cash and cash equivalents 485   (30)   (362)   (187)  
Net cash and cash equivalents at beginning of the period (14,160)   3,190   (11,032)   1,496  
Net cash and cash equivalents at end of the period (1,366)   (2,907)   (1,366)   (2,907)  

1 EBITDA $22.5 million (2023: 9.6 million): Operating profit $16.3 million (2023: $2.6 million) + Depreciation $4.2 million (2023: $3.4 million) + Net foreign exchange loss $2 million (2023: $3.6 million).
2 Refer to technical report “NI 43-101 Technical Report on the Blanket Gold Mine, Zimbabwe” with effective date December 31, 2023 prepared by Caledonia Mining Corporation Plc and filed by the Company on SEDAR+ (www.sedarplus.ca) on May 15, 2024


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