Slide 1: Q3 2015 Results Overview
eo Caledonia Mining AS Corporation Q3 2015 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 (C#039;m) • Increased revenues (C$) due to higher production offset by 3 Months to 30 9 Months to 30 a weaker gold price. September September • Lower royalty reflects a full quarter of the reduced royalty 2014 2015 2014 2015 rate, which was cut from 7% to 5% from Oc
Slide 4: Revenues
Revenues Effect of Changes in Production, Gold Price, FX Production and Revenues Revenue • 18% increase in tonnes milled outweighs lower effect grade and recovery resulting in 10% increase in Q3 2014 Q3 2015 Movt. (%) (C#039;m) production Tonnes milled (K.tonnes) 99 117 18% 2.5 Average grade (g/t) 3.34
Slide 5: Gold Production
Gold Production Completion of the Tramming Loop boosts mine production • Record quarterly tonnes mined - 116,000 tonnes 5
Slide 6: Production Costs
Production Costs Production Costs • Total on-mine production costs increase by 42% in C$ terms; 10% increase in US$ terms Q3 2014 Q3 2015 Movt – Cost per tonne milled decreases by 7% Total Production costs (C#039;m) 7.17 10.17 42% X-rate (1US$: C$) 1.09 1.31 – On-mine cost per ounce stable Total Produc
Slide 7: Production Costs: Volume Sensitivity
Production Costs Volume Sensitivity 7
Slide 8: G&A General and Administrative Costs
G&A General and Administrative Costs • 24% increase in C$ terms; 3% increase in US$ terms Q3 2014 Q3 2015 Movt • Higher IR reflects increased coverage in Europe and timing of C#039;000 C#039;000 activity Investor Relations 133 231 74% • No management contract fee following termination of the Man. Contract
Slide 9: Taxation
Taxation Taxation • Reversal of H1 income tax charge due to increased Year capital investment at Blanket, which shields profit 2014 H1 2015 Q3 2015 from tax ….. C#039;000 C#039;000 C#039;000 • ….Although this results in the higher (non-cash) Income tax 4,844 1,162 (999) deferred taxation charge, which reflec
Slide 10: Earnings per Share
Earnings per Share • IFRS EPS affected by forex gains, deferred tax, discontinued operations and non-recurring items 10
Slide 11: Cash Flow
Cash Flow Summary Cash Flow (C#039;m) 2014 2014 2014 2014 2015 2015 2015 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Cash flow from operations 6.9 3.5 5.1 3.4 3.9 2.9 1.1 Taxation paid (0.6) (1.8) (1.4) (1.1) (0.5) (0.3) (0.2) Interest (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) (0.0) Cash from operating activities 6.2 1.7 3.6 2.3 3
Slide 12: Balance Sheet
Balance Sheet Summary Balance Sheet (C#039;m) • Increase in PPE includes investment of $6.8m – Rate of capital expenditure increases as planned to 31 Dec 30-Jun 30-Sep implement the Revised Plan 2014 2015 2015 – Adverse effect on RoE until related increase in Fixed Assets 40.4 48.3 58.3 production and
Slide 13: Outlook
Outlook • Focus remains on implementing the Revised Investment Plan – 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 – Completion of the Tramming Loop p