Caledonia Mining Corporation Plc · AMEX:CMCL
Caledonia Mining — Investor Presentation (February 2016)
27 slides from Caledonia Mining's investor presentation, February 2016
Slide 1: Expanding, Low-Cost, Zimbabwean Gold Producer
Expanding, Low-Cost, Zimbabwean Gold Producer February 2016 www.caledoniamining.com
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 Mining Overview
Caledonia Mining Overview • Fully indigenised Blanket Gold Mine, • 2015 production 42,806oz Zimbabwe • Low-cost: 2014 cash-cost $652/oz; AISC $969/oz • $47m, internally-funded investment 2016-2021 to increase production to 80koz Caledonia Group • Robust cash position: C$22.4m at September 30, 2015 •
Slide 4: Zimbabwe Investor Concerns
Zimbabwe Investor Concerns • Political continuity: ZANU-PF in power since 1980 Political Stability • New government is pragmatic and pro-business • No civil disorder; established, functional government administration • 51% of all businesses must be owned by Zimbabweans Indigenisation • Caledonia imp
Slide 5: Capital Structure, Financials
Capital Structure, Financials Capital Structure Shares in issue (m) 52.1 Options (m) 0.98 Cash (30 Sept 2015) C$22.4m Overdraft (30 Sept 2015) C$2.8m Net Assets (30 Sept 2015) C$67.4m Listing and Trading Share price C$0.85 Market capitalisation (C$’m) C$44.3m Summary Profit and Loss Year H1 52 week
Slide 6: Gold Production: Revised Investment Plan Addresses Falling Production
Gold Production Revised Investment Plan Addresses Falling Production 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 –
Slide 7: The Revised Investment Plan
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 8: 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 8
Slide 9: Central Shaft Site Layout
Central Shaft Site Layout Substation Winders Workshop and Store Area Shaft Electrical Overhead lines Waste and Ore Bin 20,000 ton Conveyor Stockpile Laid Down Area 9
Slide 10: Earthworks – Cut and Fill
Earthworks – Cut and Fill Commenced January 2015
Slide 11: First Blast 17th September 2015
First Blast 17th September 2015 11
Slide 12: Scotch Derrick: In Operation
Scotch Derrick: In Operation Commenced end July 2015 12
Slide 13: Shaft Construction
Shaft Construction Shaft Barrel with Shutter Rings in place at 24m depth 20th October 2015
Slide 14: Site Infrastructure under Construction
Site Infrastructure under Construction Commenced mid October 2015 14
Slide 15: Winder Construction in progress
Winder Construction in progress Commenced mid October 2015 15
Slide 16: Progress to date
Progress to date 16
Slide 17: Revised Investment Plan: Projected Production
Revised Investment Plan Projected Production • Projected production in terms of the revised Life of Mine Plan is set out below • Revised Life of Mine Plan has been independently reviewed and confirmed by Minxcon, Johannesburg. • Projections exclude any production from the satellite exploration prope
Slide 18: Revised Investment Plan: Capital Expenditure and Funding
Revised Investment Plan Capital Expenditure and Funding • Total project spend (2015-2021) reduced from $68m to $65m • Higher capex in 2015 compared to plan due to the front-loading of capital purchases: specific items were available at attractive prices • results in $5m cumulative reduction in proje
Slide 19: 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 20: Revised Investment Plan: Reduced Costs
Revised Investment Plan Reduced Costs • Increased production results in falling costs per ounce: ─ Blanket’s fixed costs (approx. 65% of total) and Corporate G&A spread over higher production • Projected 2017 AISC below $750/oz 20
Slide 21: Other Corporate Matters
Other Corporate Matters • Adoption of US$ reporting from 2015 results (to be released late March 2016): ─ 40% devaluation of Canadian dollar against US$ distorts C$-denominated financial reporting • Proposed re-domicile from Canada to Jersey, Channel Islands - Simplifies group structure - Reduces tr
Slide 22: Dividend Policy: Committed to Shareholder Returns
Dividend Policy Committed to Shareholder Returns • November 2013 Caledonia announced a new dividend policy: – 2014 dividend of 6 Canadian cents – payable quarterly @1.5 cents/quarter • January 2016, following the decision to adopt US$ reporting, the dividend was re-stated to 1.125 US cents/quarter •
Slide 23: Milestones to unlocking value proposition
Milestones to unlocking value proposition Completion of tramming loop: mid-2015 Production commences at No 6 Winze: Q1 2016 Completion of vertical Central shaft early 2018 Commence production from Central Shaft: mid-2018 Concentrating on focused optimal extraction and lower costs 23
Slide 24: Contacts
Contacts Caledonia Mining PR (UK): Blytheweigh Website: www.caledoniamining.com Tim Blythe, Camilla Horsfall 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: +27 11 447
Slide 25: 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 25
Slide 26: 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 27: 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 Dire
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