Caledonia Mining Corporation Plc · AMEX:CMCL
Caledonia Mining — Merger or Acquisition (July 2022)
23 slides from Caledonia Mining's merger presentation, July 2022
Slide 1: Acquisition of Bilboes Gold
Acquisition of Bilboes Gold TRANSACTION PRESENTATION
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: A Strategy Focused on Genuine Returns for our Shareholders
A Strategy Focused on Genuine Returns for our Shareholders Central Shaft: Significant Committed to Attractive new near-term, increase return money opportunities low-risk growth in production in to shareholders 2022 NYSE/AIM/VFEX: CMCL 3
Slide 4: Bilboes Gold Transaction Highlights
Bilboes Gold Transaction Highlights A LARGE SCALE, LOW COST, LONG LIFE GOLD PROJECT • Caledonia has signed an agreement to purchase Bilboes for a total consideration of 5.12m Caledonia shares representing approximately 28.5% of Caledonia’s fully diluted equity, and a 1% NSR on the Project Maligreen
Slide 5: About Bilboes
About Bilboes ONE OF THE PREMIER GOLD DEVELOPMENT PROJECTS IN AFRICA • Bilboes was formerly owned and explored by Anglo American Corporation Zimbabwe Limited prior to its exit from the Zimbabwean gold sector in the late 1990s after which it was acquired by the current owners • The project is approxi
Slide 6: Bilboes Feasibility Study
@e Corporation Pic Bilboes Feasibility Study
Slide 7: Bilboes Reserves and Resources
Bilboes Reserves and Resources MULTI-MILLION OUNCE RESOURCE BASE WITH EXPLORATION POTENTIAL Mineral Resources (Cut off grade 0.9g/t) Category Tonnes (Mt) Grade (g/t) Ounces (koz) Measured 6.128 2.51 495 Indicated 29.052 2.21 2,061 Total M&I 35.180 2.26 2,555 Inferred 9.475 1.89 577 In Situ Mineral R
Slide 8: Feasibility Study Highlights
Feasibility Study Feasibility Study Highlights Life of Mine 10 Years A LARGE SCALE, LOW-COST, LONG-LIFE ASSET Isabella & McCays 2.88Mtpa Planned Production Rates • The existing DRA feasibility study indicates a robust project with healthy returns and a Bubi 2.160Mtpa substantial margin of safety at
Slide 9: Bilboes Production and Cost Profile
Bilboes Production and Cost Profile LONG-LIFE, LOW-COST GOLD PRODUCTION 9
Slide 10: Production
Production COMBINED GROUP CONSOLIDATED PRODUCTION WILL BE IN EXCESS OF 240 THOUSAND OUNCES 243koz 1. Production data for Bilboes is based on the DRA feasibility study. Refer to the technical report entitled "BILBOES GOLD PROJECT FEASIBILITY STUDY" with effective date 15 December 2021 prepared by DRA
Slide 11: Operating Costs
Operating Costs AVERAGE LIFE OF MINE CASH COSTS OF $719/OZ • The combined group will have an overall cost profile of well below $1,000/oz giving investors a substantial margin of safety in the event of lower gold prices • Increasing costs in later years are as a result of increases in the strip rati
Slide 12: Transaction Structure
Transaction Structure 12
Slide 13: Transaction Structure
Transaction Structure THE TRANSACTION WILL BE SETTLED BY THE ISSUE OF NEW EQUITY IN CALEDONIA AND A 1% NSR Infinite Treasure 1,900,708 Existing Existing Caledonia Bilboes Baker Steel Resources Trust Baker Steel Shareholders Shareholders will also be granted a 1% NSR Resources Trust 12,833,126… 5,123
Slide 14: Conditions Precedent
Conditions Precedent THE TRANSACTION IS SUBJECT TO THE FOLLOWING CONDITIONS PRECEDENT • An arrangement with the Zimbabwe authorities which allows inter alia: o that Bilboes Holdings will, for the life of the mine, be able to export gold directly and to retain 100 per cent of the sale proceeds in US
Slide 15: Bilboes Comparator Metrics
Bilboes Comparator Metrics ONE OF THE BEST GOLD DEVELOPMENT PROJECTS IN AFRICA
Slide 16: Comparison to African Gold Projects - Grade
Comparison to African Gold Projects - Grade Source – Bloomberg, Company Public Statements, Company Technical Reports NYSE/AIM/VFEX: CMCL 16
Slide 17: Comparison to African Gold Projects - Scale
Comparison to African Gold Projects - Scale Source – Bloomberg, Company Public Statements, Company Technical Reports NYSE/AIM/VFEX: CMCL 17
Slide 18: Comparison to African Gold Projects - Price
Comparison to African Gold Projects - Price Source – Bloomberg, Company Public Statements, Technical Reports Note: Abujar and Bombore are already in construction, Nyanzaga is at pre feasibility stage, all other comparators are at feasibility study stage NYSE/AIM/VFEX: CMCL 18
Slide 19: Tribute Arrangement
Tribute Arrangement SHORT TERM CASH FLOW AVAILABLE THROUGH A TRIBUTE AGREEMENT • Bilboes has an on-site oxide mining and metallurgical plant which has previously produced up to 20,000 ounces of gold pa but is on care and maintenance • Caledonia will enter a tribute agreement with Bilboes to mine and
Slide 20: Dividend
Dividend CALEDONIA REMAINS COMMITTED TO DIVIDEND PAYMENTS • Caledonia remains committed to the quarterly dividend as a cornerstone of the company’s strategy to deliver value to shareholders • Given the scale of future capital investment that is likely with Bilboes it is Quarterly dividend of unlikel
Slide 21: Zimbabwe
Zimbabwe SINCE MUGABE THE GOVERNMENT HAS TRIED TO IMPROVE THE COUNTRY’S BUSINESS CLIMATE AND MAKE IT MORE ATTRACTIVE TO INVESTORS • 51% indigenisation requirement was scrapped in March 2019: Caledonia subsequently increased its shareholding in Blanket to 64% • Exporters listed on the Victoria Falls
Slide 22: Caledonia's Vision
Caledonia’s Vision Target production from Central Shaft of 80,000 ounces a year Balance returning money to shareholders and investing in the Company's growth Continues to evaluate investment opportunities in Zimbabwe to de-risk the business from being a single asset producer The strategy will focus
Slide 23: Contacts
Contacts Website: www.caledoniamining.com Twitter: @CaledoniaMining Investment Research Cenkos Securities: cenkos.com Liberum Capital: liberum.com Share Codes: NYSE American / AIM / VFEX – CMCL WH Ireland: whirelandplc.com Cantor Fitzgerald: cantor.com Standard Bank: standardbank.com Caledonia Minin