Caledonia Mining Corporation Plc · AMEX:CMCL
Caledonia Mining — Q2 2014 Earnings Presentation
11 slides from Caledonia Mining's earnings presentation, Aug 12, 2014
Slide 1: Caledonia Mining: an expanding, low-cost, fully indigenised Zimbabwean Gold producer
@¢ Caledonia Mining Corporation S d s = Caledonia Mining: an expanding, low-cost, fully indigenised Zimbabwean Gold producer
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 (“Caledonia”), nor shall it (or any part of it) or the fact of its distribution, form the basis of,
Slide 3: Q2 2014 Results Highlights
Q2 2014 Results Highlights • Gold production up 9.6% on Q1 2014 at 11,223 oz, • Further reduction in costs: – On-mine cash cost per ounce down 4% Q-on-Q to US$624/oz – All-in sustaining cost per ounce down 5% Q-on-Q to US$881/oz • Continued balance sheet strength – C$25.8m of cash; no debt • Encoura
Slide 4: Q2 Production
Q2 Production • Q2 production was 9.6% up on Q1, only 2.5% below the target • Less grade dilution in Q2 production as a result of the switch from ring drilling to parallel drilling in the long hole stopes • Q2 head grade of 3,74 g/t is within the target range of 3.6 to 3.8 g/t and comparable with Bl
Slide 5: Q2 Production – Grade Dilution
Q2 Production – Grade Dilution • Grades were adversely affected in Q1 2014 by low- grade zones and dilution rising from over-drilling of fans. – Fan drilling was adopted in Q3 2013 on safety grounds at that time. – The longhole-stopes have been re-designed with foot-wall and hanging wall drives for
Slide 6: Increased Focus on Mine Development and Exploration
Increased Focus on Mine Development and Exploration • Production from Feudal and Lima above 9 Level was suspended due to low grades • Production from these areas will be replaced by new sections which are being brought into production earlier than planned – These areas are expected to reach full pro
Slide 7: Blanket Gold Mine, Zimbabwe Exploration and Development
Blanket Gold Mine, Zimbabwe Exploration and Development 7
Slide 8: Q2 2014 Results - Costs
Q2 2014 Results - Costs • On-mine cash costs reduced from US$651 in Q1 to US$624/oz – Oxygenation of CIL process reduces cyanide consumption from 85kg/tonne processed to 71kg/t – Increased management focus on cost control: cost per tonne mined falls from $75/t in Q1 to $70/t • AISC benefits from low
Slide 9: Q2 2014 Results - Profit and Loss
Summary P&L Q2 2014 Results - Profit and Loss 2013 2014 2014 Year Q1 Q2 • Revenues were lower compared to Q1 due to the sale Revenues 65.1 17.1 15.6 of 1,969 oz of WIP in Q1 Royalty -4.5 -1.2 -1.1 • Since January 2014, gold is sold to Fidelity for 98.5% Operating costs -27.4 -8.8 -7.8 of the value o
Slide 10: Q2 2014 Results Balance Sheet
Q2 2014 Results Balance Sheet Summary Balance Sheet (C$'m) • Reduced fixed assets reflects higher depreciation than investment 31 Dec 31 Mar 30 Jun 2013 2014 2014 Fixed Assets 33.4 36.2 35.3 • Zimbabwe overdraft facility undrawn Inventories 6.9 6.8 6.8 Prepayments 0.2 0.2 0.3 Trade receivables 3.9 3
Slide 11: Q2 2014 Results - Cash Flow
Q2 2014 Results - Cash Flow • Operational cash flow in Q1 benefited from the sale of 1,969 oz of WIP for which the costs were incurred in 2013 • Zimbabwean provisional quarterly income taxation payments tend to increase over the course of the calendar year; Q2 also includes South African income tax