Caledonia Mining Corporation Plc · AMEX:CMCL
Caledonia Mining — Investor Presentation (September 2020)
19 slides from Caledonia Mining's investor presentation, September 2020
Slide 1: Profitable production and growth in one of Africa’s last gold frontiers
Profitable production and growth in one of Africa’s last gold frontiers September 2020
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: Company Overview: building a solid foundation Central Shaft: near-term, low-risk growth Attractive new opportunities
1. Company Overview: building a solid foundation 2. Central Shaft: near-term, low-risk growth 3. Attractive new opportunities in Zimbabwe
Slide 4: Caledonia Mining: Overview
Caledonia Mining : Overview • Established, profitable gold producer, now expanding production from the Blanket Mine in the Gwanda Greenstone Belt, Zimbabwe Caledonia: • Jersey domiciled company; listed on NYSE MKT and AIM Profitable gold producer • US$11.7m in cash at 30 June 2020 • P/E of 12.4x on
Slide 5: COVID-19
COVID-19 Minimal short-term effect on production; potential delay to Central Shaft • Operating costs in Q2 2020 increased by $509,000 due to specific COVID-19 expenses (labour costs and specific consumables) • Donations to the Chamber of Mines and communities in Q2 2020 of $1,049,000 to assist with
Slide 6: Building a solid track record
Building a solid track record Production growth, good cost control and capital investment Caledonia Mining has a track record of rising production and declining unit operating costs. This has delivered strong operating cash flow to support significant capital investment 2015 2016 2017 2018 2019 CAGR
Slide 7: Recent Positive News Flow
Recent Positive News Flow A series of favourable events as Caledonia delivers its strategy July 24, 2019 Completion of shaft sinking at Central shaft project October 16, 2019 Stabilization of electricity supply situation in Zimbabwe January 3, 2020 Increase of quarterly dividend by 9.1% to 7.5 cents
Slide 8: Capital Structure & Financials
Capital Structure & Financials Relative Performance vs GDXJ Capital Structure 800 Shares in issue (11th September 2020) 12.1m 700 Options 38,000 600 Relative performance rebased to 100 500 Cash (30th June 2020)* $11.7m 400 Net Assets (30th June 2020)* $138m 300 * Cash as disclosed at the end of Q2 2
Slide 9: Solar PV Project
Solar PV Project Blanket’s tropical location and altitude are favourable for Solar PV • Caledonia has approved the construction of a 12MW solar plant at a cost of approximately $12 million • Funding for the project has been secured through the issue of equity via an ATM fundraise on the NYSE MKT • T
Slide 10: Central Shaft: Near-term growth
Central Shaft: Near-term growth 10
Slide 11: Investing in growth to 80koz/year from 2022
Investing in growth to 80koz/year from 2022 Constructing a new mine below the current workings (2015 to 2020) 6m diameter, 4-compartment shaft from surface to 1,200m. Scheduled for commissioning late 2020 Shaft sinking completed in July 2019; currently shaft equipping Mining and exploration access b
Slide 12: New Central Shaft drives development of sub-750m zones
New Central Shaft drives development of sub-750m zones Constructing a new mine below the current workings Central Shaft No. 4 Shaft Jethro Shaft 22 Level No. 6 Winze (750m) Plan illustrative and not to scale 12
Slide 13: New infrastructure is transformational for the Blanket Mine
New infrastructure is transformational for the Blanket Mine Improves haulage and worker logistics Sinking completed mid 2019, currently in a 12-month equipping phase Completion expected in H2 2020 13
Slide 14: Strong free cash flows expected from 2020 onwards
Strong free cash flows expected from 2020 onwards Declining capex and increasing cash generation 45 M&I Resources only as Budget @ $1,600/oz Historic Data per NI 43-101 40 Technical Report 35 • Production post 2022 is expected to come 30 from a combination of Measured, Indicated and Inferred Resourc
Slide 15: Outlook
Outlook 15
Slide 16: Strategy & Outlook
Strategy & Outlook Increased free cash flow to grow dividends and invest for further production Short Term (2020 – 2022): Complete the Central Shaft Project 1. Increase production to 80,000 ounces per annum from 2022 2. Increased cash flows due to higher production, lower unit costs and reduced cape
Slide 17: Attractive new opportunities in Zimbabwe
Attractive new opportunities in Zimbabwe 17
Slide 18: The Zimbabwe Opportunity
The Zimbabwe Opportunity World-class gold potential: under-explored and under-capitalized Historic & current 1Moz+ producers Significant regional potential • Zimbabwe has produced over 45 million ounces of gold • Prior to 2000, Zimbabwe produced more gold than Mali, Tanzania, Burkina Faso and Guinea
Slide 19: Contacts
Contacts Website: www.caledoniamining.com North America IR (3ppb LLC) : Share Codes: NYSE American – CMCL Patrick Chidley, Paul Durham AIM London SE – CMCL Tel : +1 917 991 7701; +1 203 940 2538 Caledonia Contacts: European IR: Swiss Resource Capital Mark Learmonth, CFO Jochen Staiger Tel: +44 (0) 1
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