Caledonia Mining Corporation Plc · AMEX:CMCL
Caledonia Mining — Q2 2022 Earnings Presentation
25 slides from Caledonia Mining's earnings presentation, August 2022
Slide 1: Q2 Results Presentation 2022
Q2 Results Presentation 2022
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: Results Summary
Results Summary 3 months ended June 30 6 months ended June 30 2021 2022 Change (%) 2021 2022 Change (%) Production (ounces) 16,710 20,091 20% 29,907 38,605 29% Average gold price ($ per ounce)1 1,792 1,840 3% 1,767 1,844 4% Revenue ($’m) 30.0 37.0 23% 55.7 72.1 29% Gross Profit ($’m) 2 13.9 18.0 29%
Slide 4: Production
Production • 20,091 ounces of gold produced in the Quarter – a record for any quarter • Higher production due to increased tonnes milled and improved grade and recovery • Central shaft currently hoists waste; No.4 shaft hoists ore • 12,700 tonne ore stockpile is estimated to contain approx. 1,500 ou
Slide 5: Review of Results: Profit or loss
Review of Results Profit or loss ($’m) 3 months ended June 30 6 months ended June 30 Change Change 2021 2022 (%) 2021 2022 (%) Revenue 30.0 37.0 23% 55.7 72.1 29% 23% increase in gold sales; 4% increase in gold price. Royalty (1.5) (1.9) 27% (2.8) (3.6) 29% Production costs (12.4) (14.5) 17% (25.2)
Slide 6: Review of Results: Production Costs
Review of Results Production Costs ($’m) 3 months ended June 30 6 months ended June 30 Change Change 2021 2022 2021 2022 (%) (%) Wages and salaries1 3.3 6.0 82% 8.9 11.9 34% Higher production bonus payouts, increased headcount and higher labour rates Consumables1 5.3 6.0 13% 8.4 11.2 33% 10% increas
Slide 7: Review of Results: Administrative cost
Review of Results Administrative cost ($’000's) 3 months ended June 30 6 months ended June 30 2021 2022 Change (%) 2021 2022 Change (%) Investor relations 121 269 55% 211 394 46% Audit fee 65 68 4% 132 136 3% Increased due to advisory fees paid to conclude the Advisory service fees 142 246 42% 229 5
Slide 8: Review of Results: Cost per ounce
Review of Results Cost per ounce 3 months ended June 30 6 months ended June 30 Change ($/0z) 2021 2022 (%) 2021 2022 Change (%) On-mine cost1 715 692 -3% 772 695 -10% Reduction in On-mine cost due to higher ounces produced All-in sustaining cost1 901 925 3% 968 946 -2% Increase in AISC per ounce due
Slide 9: Review of Results: Taxation
Review of Results Taxation ($’000’s) Zimbabwe South Africa UK Total Income tax 4,918 (75) - 4,843 Withholding tax - management fees - 46 - 46 - deemed dividend 25 - - 25 Deferred tax 448 (48) - 400 Total Taxation charge 5,391 (77) - 5,314 Cash tax paid 2,550 516 160 3,226 • Reconciliation of the ove
Slide 10: Review of Results: Cash Flow
Review of Results Cash Flow ($’m) 3 months ended June 30 6 months ended June 30 Change Change 2021 2022 (%) 2021 2022 (%) Cash flow before working capital 13.7 13.5 -1% 23.4 27.0 15% Large movements in the Voltalia prepayment due to the Working capital 1.3 4.8 269% (5.9) 3.2 -154% solar project near
Slide 11: Review of Results: Balance Sheet
Review of Results Balance Sheet ($’m) Dec 31, Jun 30, 2022 2021 Non-current assets 157.9 179.4 Continued investment at Central Shaft and the solar plant Current assets (excl. cash) 35.8 31.9 Reduced inventories and prepayments Cash and equivalents 17.2 10.9 Lower cash is consistent with our treasury
Slide 12: Review of Results: Cash
Review of Results Cash ($’m) Dec 31, 2020 Mar 31, 2021 June 30, 2021 Sept 30, 2021 Dec 31, 2021 Mar 31, 2022 Jun 30, 2022 Zimbabwe 5.1 2.2 3.2 2.1 8.2 5.8 8.9 South Africa 2.7 1.7 3.1 1.7 0.6 1.9 0.9 UK/Jersey 11.2 9.1 10.4 9.2 7.5 6.7 1.1 Total net cash 19 13 16.7 13 16.3 14.4 10.9 • Figures show n
Slide 13: Bilboes Gold Transaction
Bilboes Gold Transaction NYSE/AIM: CMCL 13
Slide 14: Bilboes Gold Transaction Highlights
Bilboes Gold Transaction Highlights A LARGE SCALE, LOW COST, LONG LIFE GOLD PROJECT • Caledonia has signed an agreement to purchase Bilboes for a total consideration of 5.12m Caledonia shares representing approximately 28.5% of Caledonia’s fully diluted equity, and a 1% NSR on the Project Maligreen
Slide 15: About Bilboes
About Bilboes ONE OF THE PREMIER GOLD DEVELOPMENT PROJECTS IN AFRICA • Bilboes was formerly owned and explored by Anglo American Corporation Zimbabwe Limited prior to its exit from the Zimbabwean gold sector in the late 1990s after which it was acquired by the current owners • The project is approxi
Slide 16: Production
Production COMBINED GROUP CONSOLIDATED PRODUCTION WILL BE IN EXCESS OF 240 THOUSAND OUNCES 243koz 1. Production data for Bilboes is based on the DRA feasibility study. Refer to the technical report entitled "BILBOES GOLD PROJECT FEASIBILITY STUDY" with effective date 15 December 2021 prepared by DRA
Slide 17: Operating Costs
Operating Costs AVERAGE LIFE OF MINE CASH COSTS OF $719/OZ • The combined group will have an overall cost profile of well below $1,000/oz giving investors a substantial margin of safety in the event of lower gold prices • Increasing costs in later years are as a result of increases in the strip rati
Slide 18: Transaction Structure
Transaction Structure THE TRANSACTION WILL BE SETTLED BY THE ISSUE OF NEW EQUITY IN CALEDONIA AND A 1% NSR Infinite Treasure 1,900,708 Existing Bilboes Baker Steel Resources Trust Existing Caledonia Baker Steel Shareholders will also be granted a 1% NSR Resources Trust Shareholders 5,123,044 Toziyan
Slide 19: Conditions Precedent
Conditions Precedent THE TRANSACTION IS SUBJECT TO THE FOLLOWING CONDITIONS PRECEDENT • An arrangement with the Zimbabwe authorities which allows inter alia: o that Bilboes Holdings will be able to export gold directly and to retain 100 per cent of the sale proceeds in US dollars over the life of mi
Slide 20: Comparison to African Gold Projects - Grade
Comparison to African Gold Projects - Grade Source – Bloomberg, Company Public Statements, Company Technical Reports NYSE/AIM/VFEX: CMCL 20
Slide 21: Comparison to African Gold Projects - Scale
Comparison to African Gold Projects - Scale Source – Bloomberg, Company Public Statements, Company Technical Reports NYSE/AIM/VFEX: CMCL 21
Slide 22: Comparison to African Gold Projects - Price
Comparison to African Gold Projects - Price Source – Bloomberg, Company Public Statements, Technical Reports Note: Abujar and Bombore are already in construction, Nyanzaga is at pre feasibility stage, all other comparators are at feasibility study stage NYSE/AIM/VFEX: CMCL 22
Slide 23: Tribute Arrangement
Tribute Arrangement SHORT TERM CASH FLOW AVAILABLE THROUGH A TRIBUTE AGREEMENT • Bilboes has an on-site oxide mining and metallurgical plant which has previously produced up to 20,000 ounces of gold pa but is on care and maintenance • Caledonia will enter a tribute agreement with Bilboes to mine and
Slide 24: Dividend
Dividend COMMITTED TO RETURN MONEY TO SHAREHOLDERS QUARTERLY DIVIDEND PAYMENTS 16 Quarterly dividend of 14 US$0.14 (14c) 12 Dividend yield CENTS PER SHARE 10 8 5% *as at 8 Aug 2022 6 4 Dividend payer since 2 2012 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2018 2018 2018 2019 2019 2
Slide 25: Contacts
Contacts Website: www.caledoniamining.com Twitter: @CaledoniaMining Investment Research Cenkos Securities: www.cenkos.com Liberum: www.liberum.com Share Codes: NYSE American / AIM / VFEX – CMCL Cantor Fitzgerald: www.cantor.com Standard Bank: www.standardbank.com Caledonia Mining VFEX Advisor: IH Gr