Caledonia Mining Corporation Plc · AMEX:CMCL
Caledonia Mining — Mines & Money 2016
21 slides from Caledonia Mining's conference presentation, December 2016
Slide 1: A Growing, Zimbabwean Gold Producer
A Growing, Zimbabwean Gold Producer December 2016
Slide 2: Disclaimer
Disclaimer This presentation does not constitute, or form part of, any offer to sell or issue or any solicitation of any offer to purchase or subscribe for, any shares in Caledonia Mining Corporation Plc (“Caledonia”), nor shall it (or any part of it) or the fact of its distribution, form the basis
Slide 3: Caledonia Mining Overview
Caledonia Mining Overview • Growing Zimbabwean gold producer • Management team combines financial acumen, mining expertise and strong Caledonia local relationships • Robust cash position: $12.4m at 30th September 2016 • 49% owned - fully indigenized • 2015 production 42,806oz Blanket Gold Mine, • Lo
Slide 4: Zimbabwe
Zimbabwe A track record of good operating performance • Political continuity: ZANU-PF in power since 1980 Political Environment • Government is pragmatic although constrained by a weakening economy • Established, functional government administration • 51% of all businesses must be owned by Zimbabwea
Slide 5: Capital Structure & Financials
Capital Structure & Financials Relative Performance Capital Structure Shares in issue (m) 52.6 Options (m) 0.6 Cash (30th Sept 2016) $12.4m Net Assets (30th Sept 2016) $55.6m Listing and Trading Share price (30th November 2016) $1.00 Summary Profit and Loss YTD YTD ($’m except per share data) Market
Slide 6: Resources
Resources Mineral Resources at June 30th 2016 ($1,200 gold) Resource replacement 2010 - 2016 Tonnes Grade Gold (000’s) (g/t) (k.oz) Measured 1,177 4.01 152 Indicated 3,678 4.31 509 Total M&I Resources 4,855 4.23 661 Inferred Resources 3,863 5.01 623 1. Tonnes are in situ 5. No geological losses were
Slide 7: Historic and Projected Gold Production
Historic and Projected Gold Production Quarterly Production 1 2 3 •1 2010-2012: production increases following completion of shaft expansion programme in 2010 2 • 2012-2014 production falls due to lower grade and underground logistical constraints • 3 Revised Plan announced in November 2014 – Improv
Slide 8: Investment plan for 80k ounces
Investment plan for 80k ounces Improved Logistics; Accelerate Access to Deeper Resources • Tramming Loop increases tramming capacity from 400tpd to 1,000tpd Increase Underground • Completed loop allows sustained increase in mine production from H2 2015 Flexibility • Development of declines at AR Sou
Slide 9: Investment Plan to Double Production
Investment Plan to Double Production Improved Logistics; Accelerate Access to Deeper Resources Central Shaft No. 4 Shaft 22 Level No. 6 Winze (750m) Plan illustrative and not to scale 9
Slide 10: Central Shaft
Central Shaft Progress to date 10
Slide 11: Blanket Expansion improves production and reduces operating costs
Blanket Expansion improves production and reduces operating costs Historic & Projected Gold Production Historic & Projected AISC • Life of Mine Plan has been independently reviewed • Projected AISC falls as fixed costs are spread over and confirmed by Minxcon, Johannesburg. more production ounces •
Slide 12: Operations remain strongly cash generative
Operations remain strongly cash generative Operating and investing cash flow and cash balance: 2015 - 2016 $25 $20.6 $20 $19.2 $14.7 $15 $12.4 $m $10.9 $10.6 $10 $8.8 $7.2 $7.1 $5 $2.3 $1.9 $1.7 $1.4 $1.3 $5.5 $5.3 $4.9 $4.4 $3.2 $3.1 $2.7 $0 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Operatin
Slide 13: Blanket Expansion improves production and reduces operating costs
Blanket Expansion improves production and reduces operating costs • Blanket is anticipated to produce 80koz by 2021 at an AISC of between $700/oz - $800/oz • At $1,200/oz this production will deliver an operating cash margin of between $400/oz - $500/oz • Blanket will generate significant attributab
Slide 14: Blanket Expansion Plan: Capex declines sharply after 2017
Blanket Expansion Plan Capex declines sharply after 2017 • 2017 Capex revised upwards to reflect increased 20 investment in underground mine development and material handling infrastructure to further enhance 18 17.8 18 18 operational flexibility 16 • Front-loading of capital purchases: specific ite
Slide 15: Dividend
Dividend A track record of sustainable and increasing dividends Dividend Sector Comparison – 30th November 2016 8% 7% 6.7% 6% 5.5% Dividend Yield 5% 4.6% 4.4% 4% 3% 2.3% 2% 1.0% 0.9% 1% 0% Polymetal Caledonia Highland Gold Pan African Resources Centamin Acacia Randgold Payout ratio 98% 33% -188% 58%
Slide 16: Revised Investment Plan Low-Risk Growth
Revised Investment Plan Low-Risk Growth • Implementation parameters based on achieved rates at other Blanket projects Not a “Stretch” plan • Highly experienced management team with experience of similar projects • 97% of the capex is generated by cash flows from mining existing higher- Fully Funded
Slide 17: Investment Case
Investment Case • Strong dividend yield • Industry leading dividend yield with payments sustainable over the long term • Management anticipate maintaining the current dividend through any future capital investment requirement • Low Cost Operations • All-in Sustaining costs of $952/oz YTD 016 • Downw
Slide 18: Contacts
Contacts Caledonia Mining PR (UK): Blytheweigh Website: www.caledoniamining.com Tim Blythe, Camilla Horsfall Share Codes: TSX - CAL; OTCQX – CALVF; Tel: +44 (0) 207 138 3204 AIM - CMCL Contact: AIM Broker/Nomad: WH Ireland Adrian Hadden Mark Learmonth Tel: +44 (0) 207 220 1666 Tel: +44 (0) 1534 702
Slide 19: Other Information: Location
Other Information: Location • Key greenstone mining district • All infrastructure in place • Skills and labour freely available • Close enough to Johannesburg for easy supply of SA- sourced supplies 19
Slide 20: Blanket Gold Mine, Zimbabwe: The First Indigenized Zimbabwean Gold Miner
Blanket Gold Mine, Zimbabwe The First Indigenized Zimbabwean Gold Miner • Indigenisation completed and implemented in Q3 2012 − 10% of Blanket donated to local community − 41% of Blanket sold to 3 parties for US$30.09 million $30m facilitation funding Caledonia − Zimbabweans given full credit for re
Slide 21: Other Information: Directors and Management
Other Information Directors and Management Management Directors Chief Executive Steve Curtis Chairman Leigh Wilson (USA) Chief Finance Officer Mark Learmonth CEO Steve Curtis (S Africa) Chief Operating Officer Dana Roets CFO Mark Learmonth (Jersey) Blanket Mine Manager Caxton Mangezi Independent Dir