Slide 1: 2021 Results Presentation
2021 Results Presentation
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: 2021 Highlights
2021 Highlights Health and Safety Excellent operational Strong financial Attractive new 2.5 m fatality free shifts performance performance opportunities prior to a fatal accident Record annual 21% increase in Maligreen claims in February 2022 production of over turnover acquired in 2021 with 67,000
Slide 4: Results Highlights
Results Highlights Year to December 31 2019 2020 2021 Change 2020 to 2021 Production (ounces) 55,182 57,899 67,476 17% Average gold price ($ per ounce)1 1,382 1,749 1,766 1% Revenue ($’m) 75.8 100.0 121.3 21% Gross Profit ($’m) 2 31.1 46.7 54.1 16% Adjusted profit attributable to shareholders ($’m)1
Slide 5: Health and Safety
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Slide 6: Safety Performance & Training
Safety Performance & Training • 2.5 million fatality-free shifts prior to a fatal accident in February 2022 • Increased head count to almost 2,000 creates new challenges: many of the new workers have little experience of working in a challenging underground mine • The Nyanzvi training initiative, wh
Slide 7: COVID-19
COVID-19 Continued support to the local Operations continued during the community in 2021 to assist with the further restrictions in 2021 Covid-19 pandemic: Phakama Clinic All Blanket Mine employees are fully vaccinated Progress on Central Shaft and the Solar Project was adversely affected by Covid-
Slide 8: Operating Review
Operating Review 8
Slide 9: Central Shaft
Central Shaft CONSTRUCTING A NEW MINE BELOW THE CURRENT WORKINGS (2015 TO 2022) Central Shaft will result in a major • Central Shaft commissioned in March 2021 – 6 months later than scheduled due improvement in to delays arising from COVID-19 and electricity production, costs and flexibility • Comme
Slide 10: Review of Operations
Review of Operations Tonnes Milled & Grade (2011 – Q4 2021) 5.5 200,000 Tonnes Milled (t) Head grade (g/t) 4.5 150,000 3.5 Increase in tonnes milled in the Quarter 100,000 2.5 following the commissioning of Central Shaft at the end of Q1 2021. 1.5 50,000 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1
Slide 11: Electricity
Electricity Blanket Mine currently uses grid power as its primary source of electricity which is subject to interruptions and is unstable • 7-days of lost production due to power in Q4 2021 The most • Cost of diesel power in 2021 was $3.9m (2020 $1.8m) significant operating challenge in To minimise
Slide 12: Solar PV Project
Solar PV Project OUR DRIVE TOWARDS A MORE SUSTAINABLE FUTURE APPROVED THE CONSTRUCTION OF A 12MW SOLAR PLANT AT A COST OF APPROXIMATELY $14 MILLION • Expected to provide approximately 27% of Blanket’s total daily electricity demand: reduce Blanket’s dependence on grid power and improve the quality a
Slide 13: Financial Review
Financial Review 13
Slide 14: Review of Results
Review of Results Profit and loss Year to December 31 2019 2020 2021 Change ($’m) Revenue 75.8 100.0 121.3 21% Higher production; gold price for the Year virtually unchanged Royalty -3.9 -5.0 -6.1 22% Royalty payable to Zimbabwe Government remains at 5% Production costs -36.4 -43.7 -53.1 22% Higher
Slide 15: Review of Results: Production Costs
Review of Results Production Costs Year to December 31 ($’m) 2020 2021 Change On mine salary increases, higher bonus provisions, appointment Wages and salaries 15.8 20.5 30% of additional senior staff, increase in on-mine headcount. 8% increase in consumable cost/tonne milled mainly due to Consumabl
Slide 16: Review of Results: G&A
Review of Results G&A Year to December 31 2020 2021 Change ($’000’s) Investor relations 353 439 24% IR activities return towards normal levels post COVID Audit fee 288 267 -7% Advisory service fees 904 622 -31% 2020 includes preparatory work relating to the ATM raise in Sept 2020 Listing fees 448 60
Slide 17: Review of Results: Taxation
Review of Results Taxation 2021 Taxation ($’000’s) Zimbabwe South Africa Total • Total effective tax rate of 39% on IFRS profit before tax (2020 – 38%): Income tax 8,097 503 8,600 • No tax deduction for G&A costs incurred in Withholding tax UK and Jersey. - management fees • Withholding tax levied b
Slide 18: Review of Results: Cash Flow
Review of Results Cash Flow Year to December 31 2019 2020 2021 ($’m) Cash flow before working capital 28.1 42.5 49.7 Improved in cash generation due to higher production Working capital -4.2 -4.5 -11.0 Increased inventories, receivables and prepayments Net interest -0.3 -0.3 -0.4 Tax paid -5.5 -6.7
Slide 19: Review of Results: Prepayments and Trade Receivables
Review of Results Prepayment and Trade Receivables Prepayments 2020 2021 As at December 31 ($’000) Solar – Voltalia deposits - 1,821 Solar – equipment & other - 1,130 Suppliers – South Africa 846 1,552 Suppliers – Zimbabwe 1,073 1,766 Other prepayments 55 661 1,974 6,930 Gold Amount Date Ounces ($’0
Slide 20: Review of Results: Balance Sheet
Review of Results Balance Sheet As at December 31 2019 2020 2021 ($’m) Non-current assets 113.7 133.3 157.9 Continued investment in Central Shaft Current assets (excl. cash) 20.4 23.8 35.8 Increased working capital, as discussed Cash and equivalents 9.4 19.1 17.2 Derivative financial assets 0.1 1.2
Slide 21: Outlook - 2022
Outlook - 2022 • Production 73,000 to 80,000 ounces as previously announced • AISC $880-$970/ounce Estimated 2022 Capital Expenditure $’m 2022 Capex per Technical Report1 15.2 Over-run on planned development 0.8 Higher than anticipated cost of operating the trackless equipment 3,000 meters of declin
Slide 22: Dividend
Dividend COMMITTED TO RETURN MONEY TO SHAREHOLDERS QUARTERLY DIVIDEND PAYMENTS Quarterly dividend of 16 14 US$0.14 (14c) 12 Dividend yield 10 3.7% US Dollars *as 21 March 2022 8 6 Dividend payer since 4 2012 2 0 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020
Slide 23: New Opportunities
New Opportunities 23
Slide 24: The Zimbabwe Opportunity
The Zimbabwe Opportunity CALEDONIA IS ACTIVELY PURSUING NEW OPPORTUNITIES IN ZIMBABWE Zimbabwe has historically produced over 45 million ounces of gold Prior to 2000, Zimbabwe produced more gold than Mali, Tanzania, Burkina Faso, the DRC and Guinea Several prolific gold belts with potential for furt
Slide 25: The Zimbabwe Opportunity: Maligreen
The Zimbabwe Opportunity MALIGREEN Purchased the mining The total cash The property contains a Significant historical claims over the project consideration of $4 million NI 43-101 compliant exploration & evaluation situated in the Gweru inferred mineral resource work conducted on the mining district
Slide 26: ESG
ESG 26
Slide 27: Environment, Social & Governance
Environment, Social & Governance CALEDONIA IS A SOCIALLY CONSCIOUS & RESPONSIBLE BUSINESS CORPORATE GOVERNANCE & ETHICS HEALTH & SAFETY OUR PEOPLE • Our Code of Business Conduct, • We aim for a zero-harm work • 100% of our employees are Ethics and Anti-Bribery Policy is the environment Zimbabwean; B
Slide 28: Environmental
Environmental SUCCESSFUL RE-VEGETATION OF THE TAILINGS DAM WALL NYSE/AIM: CMCL 28
Slide 29: Outlook
Outlook A COMPANY IN THE ASCENDANCE 29
Slide 30: Stepping Down
Stepping Down Steve Curtis will retire from his role as CEO with effect "On behalf of Caledonia's board of from June 30, 2022. directors, I thank Steve for his outstanding contribution to the He will be succeeded by Mark Learmonth, Caledonia's Company. Under his calm and steady current CFO leadershi
Slide 31: Caledonia's Vision
Caledonia’s Vision Target production from Central Shaft of 80,000 ounces a year Balance returning money to shareholders and investing in the Company's growth. Continues to evaluate investment opportunities in Zimbabwe and elsewhere to de-risk the business from being a single asset producer. The stra
Slide 32: Contacts
Contacts Website: www.caledoniamining.com Twitter: @CaledoniaMining Investment Research WH Ireland: www.whirelandplc.com Cantor Fitzgerald: www.cantor.com Share Codes: NYSE American / AIM / VFEX – CMCL Standard Bank: www.standardbank.com Caledonia Mining VFEX Advisor: IH Group AIM Broker/Nomad: WH I