Caledonia Mining Corporation Plc · AMEX:CMCL
Caledonia Mining — Investor Presentation (October 2016)
20 slides from Caledonia Mining's investor presentation, October 2016
Slide 1: A Growing, Zimbabwean Gold Producer
A Growing, Zimbabwean Gold Producer October 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: $10.6m at 30th June 2016 • 49% owned - fully indigenised • 2015 production 42,806oz Blanket Gold Mine, • Low cas
Slide 4: Zimbabwe
Zimbabwe A track record of good operating performance • Political continuity: ZANU-PF in power since 1980 Political Stability • Government is pragmatic and pro-business • Established, functional government administration • 51% of all businesses must be owned by Zimbabweans • Indigenization at Blanke
Slide 5: Capital Structure & Financials
Capital Structure & Financials Relative Performance Capital Structure $2.00 $1.80 Shares in issue (m) 52.1 $1.60 Options (m) 1.0 Share price (US$) $1.40 $1.20 $1.00 Cash (30th Jun 2016) $10.6m $0.80 Net Assets (30th Jun 2016) $54.6m $0.60 $0.40 $0.20 $0.00 2012 2013 2014 2015 2016 Listing and Tradin
Slide 6: Resources
Resources Mineral Resources at June 30th 2016 ($1,200 gold) 1. Tonnes are in situ Tonnes Grade Gold 2. All figures are in metric tonnes (000’s) (g/t) (k.oz) 3. Mineral Resources include Mineral Reserves Measured 1,177 4.01 152 4. Mineral Resources are stated at cut-off grade of 2.11g/t 5. No geologi
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 to Double Production
Investment Plan to Double Production Improved Logistics; Accelerate Access to Deeper Resources • Tramming Loop increases tramming capacity from 400tpd to 1,000tpd Increase Underground • Modest cost, completed ahead of schedule in June 2015 Material Handling • Completed loop allows 10% increase in mi
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 $1,200 90 80 81 $1,000 70 77 73 69 $800 Gold Produced (koz) 60 65 AISC ($/ounce) 50 50 $600 40 45 46 42 42 30 36 $400 20 $200 10 17 11 0 $0 2009 2010 2011 2012 2013 2014 2
Slide 12: 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 current gold prices this production will deliver an operating cash margin of over $500/oz • Blanket will generate significant attributable
Slide 13: Blanket Expansion Plan: Peak Capex in 2016
Blanket Expansion Plan Peak Capex in 2016 • Total Planned Investment 2015-2021 has reduced from $68m to $65m with no changes to the scope $20 of the investment programme $18 • Reduction reflects lower cost of capital 17.8 18 equipment $16 • Front-loading of capital purchases: specific items $14 15 w
Slide 14: Dividend
Dividend A track record of sustainable and increasing dividends Dividend Sector Comparison - September 2016 5% 4.4% 5% 4.1% 4% 3.7% 4% 3.2% Dividend Yield 3% 3% 2% 1.5% 1.5% 2% 1% 0.6% 1% 0% Pan African Resources Polymetal Highland Gold Caledonia Centamin Acacia Randgold Payout ratio 58% 98% -188% 2
Slide 15: 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 16: Investment Case
Investment Case • Industry leading 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 decline to $936/
Slide 17: 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 Mark Learmonth Adrian Hadden Tel: +44 (0) 1534 702 998 Tel: +44 (0) 207 220 1
Slide 18: 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 18
Slide 19: Blanket Gold Mine, Zimbabwe: The First Indigenised Zimbabwean Gold Miner
Blanket Gold Mine, Zimbabwe The First Indigenised 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 20: 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
Caledonia Mining — Investor Presentation (October 2016) on 6ix