Caledonia Mining Corporation Plc · AMEX:CMCL
Caledonia Mining — European Gold Forum, May 2014
21 slides from Caledonia Mining's conference presentation, May 2014
Slide 1: Expanding, Low-Cost, Zimbabwean Gold Producer
CALEDONIA MINING CORPORATION www.caledoniamining.com Company Expanding, Low-Cost, Presentation Zimbabwean Gold Producer August December 2011 European Gold Forum, May 2014
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: Caledonia Group Overview
Caledonia Group Overview TSX: CAL. OTCQX: CALVF. AIM: CMCL. Caledonia Group • Robust cash position: – $25m at December 31, 2013 held outside Zimbabwe – Excludes $30m of receivables from Blanket’s indigenous shareholders • Enterprise value $17m – approximately 1 times earnings Blanket Gold Mine, Zimb
Slide 4: Valuation Parameters
Valuation Parameters High Yield; Low PE Ratio Source: Bloomberg • Low rating is due largely to negative perceptions about Zimbabwe • Blanket is fully indigenised and has a highly successful track record • Investor concerns about Zimbabwe are over-done! 4
Slide 5: Zimbabwe – Background
Zimbabwe – Background Population and Economic Data • Population (2012)10.6m • GDP/head $693 • Zim dollar abolished Jan 2009, replaced by multicurrency system (US$, SA Rand etc) – All transactions denominated in US$; other than South Africa Rand procurement – Limited exchange rate risk for operations
Slide 6: 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 $30m facilitation funding − 41% of Blanket sold to 3 parties for US$30.09 million Caledonia − Zimbabweans given full credit for re
Slide 7: Track Record of Growth and Cost Control
Track Record of Growth and Cost Control • Gold production quadrupled since early 2009 • 2013 cash cost per ounce of US$613/oz and has consistently exceeded guidance • Q4 cash costs adversely affected by year end work in progress • Good cost control, amenable mine environment, efficient metallurgical
Slide 8: Africa's Lowest Cost Listed Gold Producer
Blanket Gold Mine, Zimbabwe Africa’s Lowest Cost Listed Gold Producer 8
Slide 9: A Low-Cost African Gold Producer: All-Inclusive Sustaining Costs
Blanket Gold Mine, Zimbabwe A Low-Cost African Gold Producer: All-Inclusive Sustaining Costs • Industry average ASIC is estimated to be US$1,150- 1,200/oz Source: Caledonia Q4 2013 MD&A. AISC includes on-mine cash costs, sustaining capital investment, head office G&A and royalty 9
Slide 10: Blanket Gold Mine, Zimbabwe: Exploration and Development
Blanket Gold Mine, Zimbabwe Exploration and Development 10
Slide 11: Exploration and Development: Blanket
Blanket Gold Mine, Zimbabwe Exploration and Development: Blanket • Extensions to the 14 and 18 Level Haulages will open up new mining areas – 14-Level haulage reached Lima in Q2 2013: exploration and development work is in progress to upgrade the existing resource base – 18 Level haulage reached its
Slide 12: Exploration and Development: No. 6 Winze
Blanket Gold Mine, Zimbabwe Exploration and Development: No. 6 Winze • Exploration to improve our understanding of the inferred Blanket ore bodies below 750m • Deepen existing No. 6 Winze Project to 1080m; develop new 26 & 30 Level Haulages to provide access to Blanket ore body – New winder chamber
Slide 13: Exploration and Development: Satellite Projects
Blanket Gold Mine, Zimbabwe Exploration and Development: Satellite Projects 18 exploration projects located on the Gwanda greenstone belt • GG Project (7km from Blanket) − Shaft sunk to 120m. Stations on 60m, 90m &120m. − Underground exploration and development continues Blanket − Metallurgical test
Slide 14: Highly Efficient Metallurgical Plant with Surplus Capacity
Highly Efficient Metallurgical Plant with Surplus Capacity • Over 93% gold recovery. • Surplus capacity – Hoisting capacity: 3,000tpd – CIL capacity: 3,800tpd – Crushing and milling capacity (after installation of new mills): 3,600tpd Target production • Targeted ore production 1,900tpd Current prod
Slide 15: Dividend Policy
Dividend Policy Committed to Shareholder Returns • November 2013 Caledonia announced a new dividend policy: – aggregate 2014 dividend of 6 Canadian cents – payable quarterly @1.5 cents/quarter. • 1.5 cents per share paid on January 30, 2014; 1.5 cents paid on April 30, 2014. • Total 2014 dividend co
Slide 16: Investment Case
Investment Case Fully indigenised – reduced political risk Continued strong production from Blanket • 2014 production guidance of 48,000oz - modest growth from 2013 • Low-cost producer: 2013 cash cost $613/oz; AISC $978/oz Internally funded growth supported by cash generation and strong cash positio
Slide 17: Contacts
Contacts Caledonia Mining Website: www.caledoniamining.com Share Codes: TSX - CAL; OTCQX – CALVF; AIM - CMCL PR (UK): BlytheWeigh Stefan Hayden, President and CEO Tim Blythe, Halimah Hussain Tel: +27 11 447 2499 Email: shayden@caledoniamining.com AIM Broker/Nomad: Numis Securities & WH Ireland Mark
Slide 18: Appendix
APPENDIX 18
Slide 19: Capital Structure, Financials
Capital Structure, Financials Capital Structure Summary Profit and Year to 31 Year to 31 Loss** Dec 2013 Dec 2012 Shares in issue (m) * 52.1 (C$’m except per share data) Options (m) * 2.7 Revenues 65.1 75.2 Fully diluted shares in issue (m) * 54.8 EBITDA 25.4 44.3 Profit before Tax 9.4 20.2 Zimbabwe
Slide 20: Summary Profit and Loss
Summary Profit and Loss Reconciliation of Actual Results to Consensus Forecast • After adjusting for non-recurring, non-cash items, Caledonia’s 2013 earnings were in-line with analysts forecasts. Reconciliation of Actual 2013 Results to Analyst Consensus C$'000's Actual 2013 attributable profit -3 1
Slide 21: Directors and Management
Directors and Management Management Directors Chief Executive Stefan Hayden Chairman Leigh Wilson Finance Director Steve Curtis Chief Executive & Stefan Hayden President Chief Operating Officer Dana Roets Finance Director Steve Curtis VP Exploration Dr Trevor Pearton Independent Director Johan Holtz