Caledonia Mining Corporation PLC · AMEX:CMCL
Caledonia Mining — Investor Presentation (February 2011)
21 slides from Caledonia Mining's investor presentation, February 2011
Slide 1: February 2011
www.caledoniamining.com February 2011
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, nor shall it (or any part of it) or the fact of its distribution, form the basis of, or be relied on in connection wit
Slide 3: Contents
Contents 1. Caledonia Group Overview 2. Blanket Gold Mine, Zimbabwe 3. Zambian Base Metals 4. South African PGE 5. Summary – The Investment Case 3
Slide 4: Caledonia Group Overview
Caledonia Group Overview • Mining, exploration and development company, listed on TSX:CAL, and AIM:CMCL • Blanket Gold Mine, Zimbabwe – Production capacity increased to 40,000oz pa – Exploration upside • Nama Base Metals Exploration, Zambia – Preliminary exploration for traditional copperbelt ores i
Slide 5: Blanket Gold Mine, Zimbabwe
Blanket Gold Mine, Zimbabwe 5
Slide 6: Blanket Gold Mine, Zimbabwe Overview
Blanket Gold Mine, Zimbabwe Overview • Located in the south of Zimbabwe • Production capacity has increased from 24,000oz pa to 40,000oz per annum following completion of an expansion project in late 2010 • 10MW of Diesel standby generators are being installed • Expected to be a low-cost operator at
Slide 7: Blanket Gold Mine, Zimbabwe Reserves
Blanket Gold Mine, Zimbabwe Reserves • Blanket is situated on the 70km x15km Gwanda Greenstone Belt • Existing reserve base currently to support 10 years production at 40koz per annum • Historic exploration was limited due to deteriorating political and economic conditions until January 2009. • Expl
Slide 8: Blanket Gold Production
Blanket Gold Mine, Zimbabwe Gold Production • Production re-started in April 2009 after liberalisation of commercial environment for gold producers • Production increases in Q2 and Q3 2009 curtailed by increased power interruptions • Production ramp up to annualised rate of 40,000oz in December 2010
Slide 9: Blanket Electricity Supply
Blanket Gold Mine, Zimbabwe Electricity Supply • Power outages in mid-2010 had a serious effect on production, costs and cash generation • The first standby generator was installed in June 2010. Additional generators to be installed in Q1 2011 will allow full operations to continue during power inte
Slide 10: Blanket Costs
Blanket Gold Mine, Zimbabwe Costs • 60% of Blanket’s costs are fixed: higher production will result in lower cost per ounce • Blanket has increased its workforce by only 6% to achieve production rate of 40k.oz • Costs per ounce are expected to be further reduced from those achieved in Q3 of 2010 • A
Slide 11: Exploration – Blanket Level 22 Haulage Development
Blanket Gold Mine, Zimbabwe Exploration – Blanket Level 22 Haulage Development • Level 22 Haulage will connect No. 4 Shaft to known resources at Eroica and Lima • Haulage provides a platform for exploration drilling for continuations of known ore-shoots • Total haulage length will be 3km, of which 1
Slide 12: Satellite Developments
Blanket Gold Mine, Zimbabwe Satellite Developments • Blanket has several “brownfield” exploration and development projects close to the current mine. • Immediate focus: • GG, 7km from Blanket • Mascot Project Area, 42km from Blanket • Crushed ore will be trucked to Blanket’s Plant, which has surplus
Slide 13: Exploration – Satellite Projects: GG
Blanket Gold Mine, Zimbabwe Exploration – Satellite Projects: GG • GG is 7kms from the Blanket Met. Plant. • Geochemical analysis and surface drilling indicates attractive exploration targets • Headgear and winder have been installed & shaft-sinking to 120m has commenced • Development and exploratio
Slide 14: Exploration – Satellite Projects: Mascot Project Area
Blanket Gold Mine, Zimbabwe Exploration – Satellite Projects: Mascot Project Area • Mascot Project Area comprises 3 mines (Mascot, Penzance and Eagle Vulture), each with vertical shafts down to 150-450m and other infrastructure • Considerable exploration work has been done with encouraging results.
Slide 15: Zimbabwe Overview and Indigenisation
Zimbabwe Overview and Indigenisation Zimbabwe: Overview Indigenisation • Government of National Unity (“GNU”) since early • Legislation requires 51% Indigenous Zimbabwean 2009 (“IZ”) ownership of all significant businesses within • Economic Stabilisation by Feb 2015 – Zimbabwe Dollar abolished in Ja
Slide 16: Zambian Base Metals - Nama Introduction
Zambian Base Metals - Nama Introduction • Caledonia holds Licences covering over 810 sq. km. adjacent to Konkola and Vale/ARM properties • Konkola East licence area is the first target: 4 preliminary holes to be drilled to 800m in early 2011 16
Slide 17: Zambian Base Metals Konkola East Target
Zambian Base Metals Konkola East Target X Y 17
Slide 18: Zambian Base Metals Konkola East Target
Zambian Base Metals Konkola East Target • Area of 25 square km to be explored • Dips to the south-east • Larger if the Ore Shale extends to the • From surface to 800 m depth west • Potentially 400 million tonnes of Ore Shale 18
Slide 19: South African PGE Location
South African PGE Location • Caledonia holds prospecting licences for two early-stage PGE exploration projects • Rooipoort on the Northern Limb of the Bushveld Igneous Complex (BIC) • Mapochsgronde on the Eastern Limb of the BIC • Caledonia is in discussions with the South African government regardi
Slide 20: Summary – The Investment Case
Summary – The Investment Case • Diversified explorer/developer/producer – jurisdictions: Zimbabwe, Zambia, South Africa – commodities: gold, platinum, base metals (copper, cobalt, nickel, iron) – Virtually debt free and highly cash generative from December 2010 • Blanket Gold Mine in Zimbabwe is the
Slide 21: Contacts
Contacts Caledonia Mining Website: www.caledoniamining.com Stefan Hayden, President and CEO Tel: +27 11 447 2499 Email: shayden@caledoniamining.com Mark Learmonth, Vice President Tel: +27 11 447 2499 Email: marklearmonth@caledoniamining.com 21
Caledonia Mining — Investor Presentation (February 2011) on 6ix