Caledonia Mining Corporation Plc · AMEX:CMCL
Caledonia Mining — Investor Presentation (April 2016)
22 slides from Caledonia Mining's investor presentation, April 2016
Slide 1: Expanding, Low-Cost, Zimbabwean Gold Producer
Expanding, Low-Cost, Zimbabwean Gold Producer April 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 • 49% owned - fully indigenised • 2015 production 42,806oz Blanket Gold Mine, Zimbabwe • Moderate cash cost: cash-cost $701/oz; AISC $1,038/oz • $47m, internally-funded investment: increase production to 80k oz by 2021; reduce AISC to below $750/oz Caledonia • Robust cash p
Slide 4: Zimbabwe Investor Concerns
Zimbabwe Investor Concerns • Political continuity: ZANU-PF in power since 1980 Political Stability • Government is pragmatic and pro-business • No civil disorder; established, functional government administration • 51% of all businesses must be owned by Zimbabweans Indigenisation • Caledonia impleme
Slide 5: Capital Structure, Financials
Capital Structure, Financials Capital Structure Shares in issue (m) 52.1 Options (m) 1.0 Cash (31 Dec 2015) $12.6m Overdraft (31 Dec 2015) $1.7m Net Assets (31 Dec 2015) $50.4m Listing and Trading Share price (6 April 2016) $0.87 Market capitalisation ($’m) $45.3m Summary Profit and Loss Year Year (
Slide 6: Resources
Resources Mineral Resources at December 31,2015 ($1,200 gold) 1. Tonnes are in situ 2. All figures are in metric tonnes 3. Mineral Resources include Mineral Reserves Tonnes Grade Gold 4. Mineral Resources are stated at cut-off grade of 2.11g/t (000’s) (g/t) (k.oz) 5. No geological losses were applie
Slide 7: Gold Production Revised Investment Plan
Gold Production Revised Investment Plan 1. 2010-2012: production increases following completion of shaft expansion programme in 2010 3 2. 2012-2014 production falls due to lower grade and underground 1 2 logistical constraints 3. Revised Plan announced in November 2014 – Improved logistics allow inc
Slide 8: The Revised Investment Plan: Improved Logistics; Accelerate Access to Deeper Resources
The Revised Investment Plan 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 mine produc
Slide 9: Revised Investment Plan: Improved Logistics; Accelerate Access to Deeper Resources
Revised Investment Plan 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: Site view – November 2014
Central Shaft Site view – November 2014 10
Slide 11: Central Shaft Progress to date
Central Shaft Progress to date 11
Slide 12: Shaft Construction: Shaft Collar Construction
Shaft Construction Shaft Collar Construction 12 12
Slide 13: Revised Investment Plan Projected Production and AISC
Revised Investment Plan Projected Production and AISC • Revised Life of Mine Plan has been independently • Projected AISC falls as fixed costs are spread over reviewed and confirmed by Minxcon, Johannesburg. more production ounces • Projected production excludes the satellite • Improved operating ef
Slide 14: Projected Earnings (Edison Research – April 2016)
Revised Investment Plan Projected Earnings (Edison Research – April 2016) 2015 2016 2017 2018 Actual F’cast F’cast F’cast Gold price 1,139 1,224 1,347 1,408 Production (k.oz) 42.8 50.0 65.0 67.0 On-mine cost/oz ($/oz) 701 652 565 559 EPS (cents) 8.1 23.5 46.7 45.2 • Current PER (6 April share price
Slide 15: Revised Investment Plan Capital Expenditure and Funding
Revised Investment Plan Capital Expenditure and Funding • Total Planned Investment 2015-2021 has reduced from $68m to $65m with no changes to the scope of the investment programme • Reduction reflects lower cost of capital equipment • Higher capex in 2015 compared to plan due to the front-loading of
Slide 16: Dividend
Dividend • Caledonia commenced annual dividend payment in 2013 at 5 Canadian cents per share • Quarterly dividends adopted from January 2014 - 1.5 Canadian cents per quarter - Re-stated to 1.125 US cent per quarter from January 2016 following adoption of US$ financial reporting - Dividends paid at t
Slide 17: 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 • Allowance built in for slippage • Highly experienced management team with experience of similar projects • 97% of the capex is generated by cash flows from min
Slide 18: Other Corporate Matters
Other Corporate Matters • Adoption of US$ reporting from 2015 results (released late March 2016): ─ 40% devaluation of Canadian dollar against US$ distorts C$-denominated financial reporting • Re-domicile from Canada to Jersey, Channel Islands - Simplifies group structure - Reduces travel and compli
Slide 19: Contacts
Contacts Caledonia Mining PR (UK): BlytheWeigh Website: www.caledoniamining.com Tim Blythe, Camilla Horsfell Share Codes: TSX - CAL; OTCQX – CALVF; AIM - CMCL AIM Broker/Nomad: WH Ireland Research: Edison Investment Research Mark Learmonth www.edisoninvestmentresearch.co.uk/research Tel: +44 1534 70
Slide 20: 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 20
Slide 21: 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 22: 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 (S Africa VP Exploration Dr Trevor Pearton Independent Direc
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