Results for the Year ended December 31, 2022

RNS Number : 0830U
Caledonia Mining Corporation PLC
24 March 2023
 

Caledonia Mining Corporation Plc

Results for the Year ended December 31, 202 2

Notice of Management Conference Call

(NYSE AMERICAN: CMCL; AIM: CMCL; VFEX: CMCL)

St Helier: March 24, 2023

Caledonia Mining Corporation Plc ("Caledonia" or the "Company") announces its operating and financial results for the year ended December 31, 202 2 (the "Year"). Further information on the financial and operating results for the Year and the quarter ended December 31, 202 2 (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 have been filed on SEDAR.   

 202 2 Financial Highlights (USD)

· Gross revenues of $1 42 million (202 1 : $1 21 million).

· Gross profit of $ 61.8 million (202 1 : $ 54.1 million).

· EBITDA of $50.4million (2021: $46.4 million).

· On-mine cost per ounce [1] of $735 (2021: $742).

· All-in sustaining cost per ounce 1 of $878 (2021: $856).

· Adjusted earnings per share (EPS) 1 of 219.9 cents (2021: 225.9 cents).

· Net cash from operating activities of $42.6 million (2021: $30.9 million).

· Net cash and cash equivalents of $1.5 million (2021: $16.3 million).

· Dividend paid of 56 cents per share (2021: 50 cents per share) .

 

Operating Highlights

· 80,775 ounces (" oz ") of gold produced in the Year (202 1 : 67,476 o z ); record annual production at Blanket Mine and achieving the Company's long-term production target.

· During Q4, Caledonia completed the acquisition of a company owning the mining lease for Motapa, a property c ontiguous to the Bilboes gold project with the potential of gold processing synergy .

· In the Quarter, the 12.2 MWac solar plant at Blanket Mine started to generate power.

 

 

 

Post Year- e nd events and Outlook

· Regrettably, a fatal accident occurred on February 16 , 202 3 . The d irectors 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 .

· 202 3 combined gold production guidance of between 87,500 - 97,000oz comprised of:

7 5 ,000 - 80,000 oz from Blanket. [2]

12,500 - 17,000oz from the oxide operation at Bilboes. [3]

· In January the Company completed the acquisition of the Bilboes gold project in Zimbabwe

A large high-grade gold deposit.

The p roject has NI 43-101 compliant proven and probable mineral reserves of 1.96 million ounces (" Moz ") of gold in 26.64 million tonnes (" Mt ") at a grade of 2.29 grams per ton (" g/t ") and measured and indicated mineral resources of 2.56 Moz of gold in 35.18 Mt at a grade of 2.26 g/t and inferred mineral resources of 577,000 oz of gold in 9.48 Mt at a grade of 1.89 g/t . [4]

·   In February the Company released an u pdate to the NI 43-101 c ompliant m ineral r esources and r eserves at Blanket Min e. The total measured and indicated mineral resources inclusive of mineral reserves has increased from the most recently published estimate by 52% to 1,095,000oz of gold in 10.72Mt at a grade of 3.18 g/t and the total mineral reserves increased by 1% to 395,000oz of gold in 3.94Mt at a grade of 3.12 g/t[5].

Conference Call

Management will host a conference call on March 2 8, 2023 to discuss the 202 2 results and the outlook for the Company.  The details for this call are set out towards the end of this announcement.

Mark Learmonth , Chief Executive Officer, commented:

"Operationally, the last 12 months have marked a turning point for the business, and I am delighted that we hit our long-term target of just over 80,000oz . The last couple of years has seen a tremendous amount of change in the Company as we pivot the direction of the business towards becoming a multi-asset gold producer in Zimbabwe. We have always seen huge geological potential in the country and are very excited about the portfolio of attractive new assets that we have acquired.

" In November we purchased Motapa, an asset we consider to be highly prospective and strategically important in our growth ambitions, as it is a large exploration property which is contiguous to the Bilboes gold project.

" In January 2023, following the satisfaction of conditions precedent, we closed the acquisition of the Bilboes Gold Project. A feasibility study prepared by the vendors indicates the potential for an open-pit gold mine producing an average of 168,000o z per year over a 10-year life of mine. Caledonia has commissioned its own feasibility study to identify the most judicious way to commercialise the p roject to optimize shareholder returns.  One approach that will be considered is a phased development which would minimise the initial capital investment and reduce the need for third party funding. The Company has also restarted the oxide operations at Bilboes providing immediate cash-flow and ha s given guidance of between 12,500 - 17,000o z for 2023.

 " In November 2022, the Company's 12 .2 MWac solar plant was connected to the Blanket grid and the mine has since been receiving 27% of its energy from solar. T he solar power will displace power from the grid and from the diesel generators and is expected to reduce Caledonia's consolidated cost per ounce of gold produced by approximately $37. This completion happily coincides with an improvement in the supply of power from the Zimbabwe grid which has substantially reduced the amount of diesel consumed.    W e are confident that we will continue to see an ongoing meaningful reduction to our diesel usage month on month, fully justifying our investment in solar power and delivering on our Environmental Social Governance strategy.

" The quarterly dividend continues to be an important part of the Company's strategy and during the Year we paid a quarterly dividend of 14 cents a share, providing a healthy yield to our shareholders. We believe the dividend coupled with our growth strategy makes us an attractive investment and sets us apart from our industry peers.

 

"I would like to thank the Caledonia team for their continued hard work, and I look forward to updating shareholders of our progress."

 

Conference Call Details

A presentation of the 2022 results and outlook for Caledonia is available on Caledonia's website (www.caledoniamining.com). Management will host a conference call at 2pm London time on March 28, 2023.

 

 

 

Details for the call are as follows:

When: March 28, 2023 02:00 PM London
Topic: 2022 Full Year and Q4 Results call for Shareholders

Register in advance for this webinar:
https://caledoniamining.zoom.us/webinar/register/WN_kZXEkm8AQZajiCX55eqLBA

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

Camilla Horsfall

 

Tel: +44 1534 679 800

Tel: +44 7817 841 793

Cenkos Securities plc (Nomad and Joint Broker)

Adrian Hadden

Neil McDonald

Pearl Kellie

 

Tel: +44 207 397 1965

Tel: +44 131 220 9771

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

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

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));  a vailability 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.

 

  Consolidated statements of profit or loss and other comprehensive income

(in thousands of United States Dollars, unless indicated otherwise)

For the years ended December 31

 

Note

2022

2021

2020

 

 

 

 



Revenue


8

142,082

121,329

100,002

Royalty


 

(7,124)

(6,083)

(5,007)

Production costs


9

(62,998)

(53,126)

(43,711)

Depreciation


17

(10,141)

(8,046)

(4,628)

Gross profit

 

 

61,819

54,074

46,656

Other income


 

60

46

4,765

Other expenses


10

(11,782)

(7,136)

(5,315)

Administrative expenses


11

(11,941)

(9,091)

(7,997)

Cash-settled share-based expense


12.1

(609)

(477)

(1,413)

Equity-settled share-based expense


12.2

(484)

-

-

Net foreign exchange gain


13

4,411

1,184

4,305

Net derivative financial instrument expense


14

(1,198)

(240)

(266)

Operating profit

 

 

40,276

38,360

40,735

Finance income


15

17

14

62

Finance cost


15

(657)

(375)

(367)

Profit before tax

 

 

39,636

37,999

40,430

Tax expense


16

(16,770)

(14,857)

(15,173)

Profit for the year

 

 

22,866

23,142

25,257



 

 



Other comprehensive loss

 

 

 



Items that are or may be reclassified to profit or loss

 

 

 



Exchange differences on translation of foreign operations


 

(462)

(531)

(173)

Total comprehensive income for the year

 

 

22,404

22,611

25,084




 



Profit attributable to:

 

 

 



Owners of the Company



17,903

18,405

20,780

Non-controlling interests


27

4,963

4,737

4,477

Profit for the year

 

 

22,866

23,142

25,257




 



Total comprehensive income attributable to:

 

 

 



Owners of the Company



17,441

17,874

20,607

Non-controlling interests


27

4,963

4,737

4,477

Total comprehensive income for the year

 

 

22,404

22,611

25,084

 

 

 

 



Earnings per share

 

 

 



Basic earnings per share ($)


26

1.36

1.49

1.73

Diluted earnings per share ($)


26

1.35

1.48

1.73

 

Consolidated statements of cash flows

For the years ended December 31,

(in thousands of United States Dollars, unless indicated otherwise)

 

 

Note

2022

2021

2020

 

 

 

 



Cash generated from operations

 

31

49,657

38,703

37,967

Interest received



17

14

56

Net finance costs paid



(192)

(388)

(405)

Tax paid


16

(6,866)

(7,426)

(6,656)

Net cash generated from operating activities

 


42,616

30,903

30,962




 



Cash flows used in investing activities

 


 



Acquisition of property, plant and equipment



(41,495)

(32,112)

(25,081)

Acquisition of exploration and evaluation assets



(2,596)

(5,717)

(2,759)

Proceeds from sale of assets held for sale



-

500

-

Proceeds from (purchase of) derivative financial assets



-

1,066

(1,058)

Proceeds from disposal of subsidiary



-

340

900

Acquisition of Put options


14.1

(478)

-

-

Net cash used in investing activities

 


(44,569)

(35,923)

(27,998)




 



Cash flows from financing activities

 


 



Dividends paid



(8,906)

(8,069)

(4,542)

Term loan repayments



-

(361)

(574)

(Repayment of) proceeds from gold loan


14.2

(3,698)

2,752

-

Proceeds from Call options


14.2

  240

208

-

Payment of lease liabilities


19

(150)

(129)

(118)

Shares issued - equity raise (net of transaction cost)


24

-

7,806

12,538

Proceeds from share options exercised


24

-

165

30

Net cash (used in) from financing activities

 


(12,514)

2,372

7,334




 



Net (decrease) increase in cash and cash equivalents

 


(14,467)

(2,648)

10,298

Effect of exchange rate fluctuations on cash and cash equivalents



(302)

(179)

(99)

Net cash and cash equivalents at the beginning of the year



16,265

19,092

8,893

Net cash and cash equivalents at the end of the year

 

23

1,496

16,265

19,092







Consolidated statements of financial position

(in thousands of United States Dollars, unless indicated otherwise)

As at December 31

 

Note

2022

2021


 

 

 


Assets

 

 

 


Property, plant and equipment

 

17

178,983

149,102

Exploration and evaluation asset

 

18

17,579

8,648

Deferred tax asset

 

16

202

194

Total non-current assets

 

 

196,764

157,944


 

 

 


Inventories

 

20

18,334

20,812

Derivative financial assets

 

14.1

440

-

Income tax receivable

 

16

40

101

Prepayments

 

21

3,693

6,930

Trade and other receivables

 

22

9,185

7,938

Cash and cash equivalents

 

23

6,735

17,152

Total current assets

 

 

38,427

52,933

Total assets

 

 

235,191

210,877


 

 

 


Equity and liabilities

 

 

 


Share capital

 

24

83,471

82,667

Reserves

 

25

137,801

137,779

Retained loss

 

 

(50,222)

(59,150)

Equity attributable to shareholders

 

 

171,050

161,296

Non-controlling interests

 

27

22,409

19,260

Total equity

 

 

193,459

180,556


 

 

 


Liabilities

 

 

 


Provisions

 

28

2,958

3,294

Deferred tax liabilities

 

16

5,123

8,034

Cash-settled share-based payment

 

12.1

1,029

974

Lease liabilities

 

19

181

331

Total non-current liabilities

 

 

9,291

12,633


 

 

 


Cash-settled share-based payment

 

12.1

1,188

2,053

Lease liabilities

 

19

132

134

Derivative financial liabilities

 

14.2

-

3,095

Income tax payable

 

16

1,324

1,562

Trade and other payables

 

29

17,454

9,957

Loan notes payable

 

30

7,104

-

Overdraft

 

23

5,239

887

Total current liabilities

 

 

32,441

17,688

Total liabilities

 

 

41,732

30,321

Total equity and liabilities

 

 

235,191

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 announcement .  Refer to section 10 of the MD&A for a discussion of non-IFRS measures .

 

[2] Refer to the technical report entitled "NI 43-101 Technical Report on the Blanket Gold Mine, Zimbabwe" with effective date September 1, 2022 prepared by Minxcon (Pty) Ltd filed by the Company on SEDAR (www.sedar.com) on March 13, 2023

[3] Gold production will be derived from the measured mineral resources set out in the technical report entitled "BILBOES GOLD PROJECT FEASIBILITY STUDY" with effective date December 15, 2021 prepared by DRA Projects (Pty) Ltd and filed by the Company on SEDAR on July 21, 2022

[4] Refer to the technical report entitled "BILBOES GOLD PROJECT FEASIBILITY STUDY" with effective date December 15, 2021 prepared by DRA Projects (Pty) Ltd and filed by the Company on SEDAR on July 21, 2022

[5] Refer to announcement by the Company dated February 6, 2023 entitled "Mineral Resources and Reserves Update at the Blanket Mine" together with the technical report on Blanket Mine referred to at footnote 2 above

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
FR FFFIIVIIVFIV
UK 100

Latest directors dealings