Slide 1: Q3 2016 Results Overview
eo Caledonia Mining AS Corporation Q3 2016 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 Summary P&L (US$m) 3 months ended 9 months ended • Increased revenues reflected higher September 30 September 30 production and a higher gold price 2015 2016 2015 2016 Revenue 12.1 17.6 37.2 46.7 • Costs for Q3 remain under control with on Royalty (0.6) (0.9) (1.9) (2.3) min
Slide 4: Production and Revenues
Production and Revenues Effect of Changes in Production, Gold Price Production and Revenues Q3 2015 Q3 2016 % change Tones Milled (000's) 116,694 133,375 14% Average grade (g/t) 3.14 3.36 7% Average recovery (%) 92.7 93.2 0.5% Gold Production (oz) 10,927 13,428 23% Average realised gold price ($/oz)
Slide 5: Dividend
Dividend A track record of sustainable and increasing dividends Dividend Peer Comparison 7% 6.1% 6% 5% 4.3% Dividend Yield 4.2% 3.9% 4% 3% 2.1% 2% 0.9% 0.8% 1% 0% Polymetal Highland Gold Pan African Resources Caledonia Centamin Randgold Acacia Payout Ratio 98% -188% 58% 31% 35% 33% -10% • In July 20
Slide 6: Gold Production
Gold Production Quarterly Production • Blanket mine set a new production record with 16 quarterly production increasing to over 13k ounces as a 14 result of increased tonnes milled and grade Gold Produced (k.oz) 12 improvements 10 • Production was boosted by improved access to 8 resources below 750m
Slide 7: Production Costs
Production Costs YTD 2016 YTD 2015 Change • Blanket did not experience significant inflationary Gold produced (oz) 36,760 31,288 17% pressure on input costs On-mine cost ($/oz) 643 701 -8% • Unit operating costs per ounce and per tonne milled All-in Sustaining Cost ($/oz) 952 1,006 -5% benefitted fr
Slide 8: G&A
G&A YTD 2016 YTD 2015 Change • Higher IR reflects increased coverage in UK and Investor relations 478 408 17% Europe Eersteling gold mine holding costs 81 90 -10% • Management continue to investigate options for Professional consulting fees 774 338 129% the disposal of Eersteling Gold mine Audit fee
Slide 9: Earnings per Share
Earnings per Share Quarterly Adjusted EPS 7 6.10 6 5 4.4 Adjussted EPS (USc) 3.80 3.68 4 2.94 2.73 3 2.58 1.87 1.76 2 1.50 0.88 1 0 -1 -0.49 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Q3 2016 Q3 2015 • IFRS EPS affected by forex gains, deferred tax and Attrib
Slide 10: Cash Flow
Cash Flow Q3 2016 Q3 2015 YTD 2016 YTD 2015 • Cash from operating activities remains Operating Cash Flow robust, boosted by higher production Cash generated by operating activities 8,057 1,585 17,892 5,459 Net finance cost paid -52 -25 -142 -74 volumes and a stronger gold price Net tax paid -898 -16
Slide 11: Operations remain strongly cash generative
Operations remain strongly cash generative Operating and investing cash flow and cash balance: 2015 - 2016 $25 $20.6 $20 $19.2 $14.7 $15 $12.4 $m $10.9 $10.6 $10 $8.8 $7.2 $7.1 $5 $2.3 $1.9 $1.7 $1.4 $1.3 $5.5 $5.3 $4.9 $4.4 $3.2 $3.1 $2.7 $0 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Operatin
Slide 12: Balance Sheet
Balance Sheet Sep-16 Dec-15 • Caledonia mining remains debt free with adequate cash Fixed Assets 59,394 49,276 resources and strong operating cash flow Current Assets • Dividends are comfortably covered by cash resources and Inventories 6,701 6,091 operating cash flows Prepayments 867 667 • Increase
Slide 13: Operational Issues
Operational Issues • Central Shaft is progressing well – Achieved a depth of 348 meters as at October 31, 2016 – Unstable electricity supply from grid has impeded work and requires the installation of equipment to protect Blanket’s equipment • Work has commenced on new projects that are incremental
Slide 14: Outlook
Outlook • Focus remains on the investment program to double production to 80,000 ounces by 2021 – Higher production and reduced costs will secure Blanket’s long term position as a low cost producer – Creates greater operational flexibility for continued deep-level exploration and development • The r