Slide 1: Q1 2015 Results Overview
eo Caledonia Mining AS Corporation Q1 2015 Results Overview a
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: Profit and Loss
Profit and Loss Overview • Revenues were lower due to reduced gold sales (lower gold production and reduced work-in-progress) and the lower realised gold price. • Lower royalty reflects a full quarter of the reduced royalty rate, which was cut from 7% to 5% from October 1, 2014 • Production costs in
Slide 4: Revenues
Revenues Effect of Changes in Production, Gold Price, FX Production and Revenues • Gold production was 3% lower quarter-on-quarter Revenue – The benefit of higher throughput (i.e. tonnes effect Q1 2014 Q1 2015 Dif (%) (C#039;m) milled) was outweighed by the adverse effect Tonnes milled (K.tonnes) 93 10
Slide 5: Gold Production
Gold Production • Quarterly production is now approx. 10,000 ounces per quarter compared to over 12,000 ounces per quarter in mid-2012 • Q1 2015 production almost exactly on target • Lower production is primarily due to lower grades which have fallen from a peak of 4.5g/t to 3.19g/t in Q1 2015 – Bla
Slide 6: Production Costs
Production Costs Production Costs • 8.3% increase in C$ terms translates to 3.5% decrease in US$ terms (Q1 2015 compared to Q1 2014) Q1 2014 Q1 2015 Movt – Cost per tonne milled falls by 14.4% Production costs (C#039;m) 8.79 9.51 8.3% X-rate (1US$: C$) 1.10 1.24 • 17% increase in labour costs in US%$ t
Slide 7: G&A General and Administrative Costs
G&A General and Administrative Costs • 9% increase in C$ terms (Q1 2015 compared to Q1 2014) 2% Q1 2014 Q1 2015 Movt decrease in US$ terms C#039;000 C#039;000 • Higher IR reflects increased coverage in UK and Europe Investor Relations 82 120 46% • Lower management contract fee following termination of the
Slide 8: Taxation
Taxation • As guided, taxation is substantially lower in the Quarter than in Taxation previous quarters C#039;000 – Total effective tax rate of 35% compared with 50% for 2014 SA Income Tax 33 Total income tax 33 • SA income tax on intercompany profits at GMS SA Zim. withholding tax 220 – Total effectiv
Slide 9: Earnings per Share
Earnings per Share Earnings Per Share (IFRS) Q1 2014 Q1 2015 • IFRS EPS affected by deferred tax and continued Zambian costs C#039;m C#039;000 – nevertheless, Q1 2015 EPS is better than Q3 and Q4 of 2014 Attrib earnings 2,425 1,554 Adj 18.3 (57) • Adjusted EPS of 4.0 cents shows improvement on previous qu
Slide 10: Cash Flow
Cash Flow Summary Cash Flow (C#039;m) • Cash from operating activities remains robust despite lower production and sales and the lower 2014 2014 2014 2014 2015 gold price Q1 Q2 Q3 Q4 Q1 Cash flow from operations 6.9 3.5 5.1 3.4 3.9 • Significant increase in capital investment in he Taxation paid (0.6)
Slide 11: Balance Sheet
Balance Sheet Summary Balance Sheet (C#039;m) • Increase in PPE includes investment of $3.9m and FX movement of $3.7m 31 Dec 31-Mar – Rate of capital expenditure increases as planned to implement 2014 2015 the Revised Plan Fixed Assets 40.4 47.0 – Adverse effect on RoE until related increase in product
Slide 12: Project Update: No. Winze Production Winders Installed
Project Update No. 6 Winze: Production Winders Installed
Slide 13: Project Update: Central Shaft Site Clearing
Project Update Central Shaft: Site Clearing and Terracing (Early March 2015)
Slide 14: Project Update: Central Shaft Collar Excavation
Project Update Central Shaft: Excavation of Collar (9 April 2015)
Slide 15: Project Update: Central Shaft Collar Excavation
Project Update Central Shaft: Excavation of Collar (9 April 2015)
Slide 16: Project Update: Central Shaft Collar Excavation
Project Update Central Shaft: Excavation of Collar (16 April 2015)
Slide 17: Project Update: Central Shaft Collar Excavation
Project Update Central Shaft: Excavation of Collar (26 April 2015)