Results for the Quarter ended June 30, 2024
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August 12, 2024: Caledonia Mining Corporation Plc ("Caledonia" or "the Company") 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
- Gross revenues of $50.1 million compared to $37.0 million in the second quarter of 2023 ("Q2 2023") due to higher gold production and a higher gold price.
- Gross profit of $22.9 million, a 109.8% increase from $10.9 million in Q2 2023, due to both higher gold revenue and lower production costs.
- EBITDA (excluding depreciation and net foreign exchange gains and losses) of $22.5 million in the Quarter (Q2 2023: $9.6 million)[1].
- Blanket Mine ("Blanket") on-mine cost per ounce of $906 (Q2 2023: $915).
- Consolidated all-in sustaining cost ("AISC") decreased by 7.7% to $1,253 per ounce (Q2 2023: $1,357 per ounce), due to the lower on-mine cost per ounce offset by higher sustaining capital expenditure and increased administrative expenses.
- Group net cash inflow from operating activities of $19.1 million in the Quarter (Q2 2023: $2.2 million outflow).
- Net cash and cash equivalents in the Quarter increased by $12.8 million to negative $1.4 million.
Operating Highlights for the Quarter
- 20,773 ounces of gold were produced from Blanket (Q2 2023: 17,436 ounces).
- Publication of preliminary economic assessment ("PEA") for the gold sulphide project at Bilboes (the "Bilboes Sulphide Project") on June 3, 2024 suggests a yield of approximately 1.5 million ounces of gold, over a 10-year life of mine, at an all-in sustaining cost of $968 per ounce.
- On May 15, 2024 Caledonia announced updated mineral reserves and resources estimates, including a 106% increase in Blanket's mineral reserves and a 63% increase in measured and indicated mineral resources pursuant to Canada's National Instrument 43-101 and an increase in Blanket's life of mine to 2034, based on the updated mineral reserves estimate. Management believes that the inferred mineral resources may, based on past successful conversion rates, further extend the life of mine past 2040.
Dividend
- A dividend of 14 cents per share was paid in April 2024 (for Q1 2024) and again in July 2024 (for Q2 2024).
- To streamline board processes, future dividends are expected to be declared at the same time as the publication of quarterly results (i.e. mid-March, May, August, and November). This will mean that the Q3 2024 dividend, if approved by the board, will be declared in mid-November rather than at the start of October.
- This change relates only to the timing of future dividends and does not denote any change in the Company's dividend policy.
- The board will continue to consider the dividend as appropriate in line with other investment opportunities and its prudent approach to risk management.
Outlook
- Caledonia is on track to achieve production at Blanket within its pre-disclosed guidance range of 74,000 to 78,000 ounces for 2024[2].
- The group is progressing the new feasibility study on the Bilboes Sulphide Project, which is expected to be delivered during the first quarter of 2025.
- The Company continues to progress exploration activities at Motapa.
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 $968 per ounce. As such, Bilboes has the potential to almost triple Caledonia's gold production to over 200,000 ounces per annum, in combination with production from Blanket.
"In May, we were delighted to welcome James Mufara as Chief Operating Officer. James joins us at a pivotal moment in Caledonia's development and the team is already benefiting from his wealth of experience.
"Caledonia remains well positioned to deliver continued returns to shareholders. I am very excited by the opportunity we have to evolve our business, which we believe will generate significant long term shareholder value."
Caledonia will host an online investor presentation and Q&A session on August 12, 2024 at 14:00 London Time
When: Aug 12, 2024 02:00 PM London
Topic: Q2 2024 Results Call for Investors
Register in advance for this webinar:
Note:
($'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
| 3 Months ended June 30 | 6 Months ended June 30 | |||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| 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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