Caledonia Mining Corporation Plc · AMEX:CMCL
Caledonia Mining — Investor Presentation (April 2017)
22 slides from Caledonia Mining's investor presentation, April 2017
Slide 1: A Growing, Zimbabwean Gold Producer
A Growing, Zimbabwean Gold Producer April 2017
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: FY 2017 Results Summary
FY 2017 Results Summary Record gold production and reduced unit costs support strong cash generation 3 months to 12 months to yoy % 31 December 31 December Comment Change 2015 2016 2015 2016 Record gold production in the Year and Quarter due to Gold produced (oz) 11,515 13,591 42,804 50,351 +18% inc
Slide 4: Caledonia Mining Overview
Caledonia Mining Overview • Growing Zimbabwean gold producer • Management team combines financial acumen, mining expertise and strong Caledonia local relationships • Robust cash position: $14.3m at 31st December 2016 • 49% owned - fully indigenized • 2016 production 50,351oz: cash-cost $636/oz; AISC
Slide 5: Zimbabwe
Zimbabwe A track record of good operating performance • Political continuity: ZANU-PF in power since 1980 Political Environment • Government is pragmatic although constrained by a weakening economy • Established, functional government administration • 51% of all businesses must be owned by Zimbabwea
Slide 6: Capital Structure & Financials
Capital Structure & Financials Relative Performance Capital Structure $2.50 Shares in issue (m) 52.8 $2.00 Options (m) 0.46 Share price (incl div) US$ $1.50 Cash (30th Sept 2016) $14.3m $1.00 Net Assets (30th Sept 2016) $59.3m $0.50 $0.00 2012 2013 2014 2015 2016 2017 Listing and Trading CALVF share
Slide 7: Resources
Resources Mineral Resources at June 30th 2016 ($1,200 gold) Resource replacement 2010 - 2016 Tonnes Grade Gold (000’s) (g/t) (k.oz) Measured 1,177 4.01 152 Indicated 3,678 4.31 509 Total M&I Resources 4,855 4.23 661 Inferred Resources 3,863 5.01 623 1. Tonnes are in situ 5. No geological losses were
Slide 8: Historic and Projected Gold Production
Historic and Projected Gold Production Quarterly Production 1 2 3 •1 2010-2012: production increases following completion of shaft expansion programme in 2010 2 • 2012-2014 production falls due to lower grade and underground logistical constraints • 3 Revised Plan announced in November 2014 – Improv
Slide 9: Investment plan for 80k ounces
Investment plan for 80k ounces Improved Logistics; Accelerate Access to Deeper Resources • Tramming Loop increases tramming capacity from 400tpd to 1,000tpd Increase Underground • Completed loop allows sustained increase in mine production from H2 2015 Flexibility • Development of declines at AR Sou
Slide 10: Investment Plan to Double Production
Investment Plan to Double Production Improved Logistics; Accelerate Access to Deeper Resources Central Shaft No. 4 Shaft 22 Level No. 6 Winze (750m) Plan illustrative and not to scale 10
Slide 11: Central Shaft
Central Shaft Progress to date 11
Slide 12: Blanket Expansion improves production and reduces operating costs
Blanket Expansion improves production and reduces operating costs Historic & Projected Gold Production Historic & Projected AISC • Life of Mine Plan has been independently reviewed • Projected AISC falls as fixed costs are spread over and confirmed by Minxcon, Johannesburg. more production ounces •
Slide 13: Operations remain strongly cash generative
Operations remain strongly cash generative Cash increased in 2016 despite $20m in Capex and dividends of $3m Operating and investing cash flow and net cash balance: 2015 - 2016 $25 $20.6 $20 $19.2 $14.7 $15 $12.4 $11.3 $m $10.9 $10.6 $10 $8.8 $7.2 $7.1 $6.9 $5 $2.3 $7.3 $1.9 $1.7 $1.4 $1.3 $5.5 $5.3
Slide 14: Blanket Expansion improves production and reduces operating costs
Blanket Expansion improves production and reduces operating costs • Blanket is anticipated to produce 80koz by 2021 at an AISC of between $700/oz - $800/oz • At $1,200/oz this production will deliver an operating cash margin of between $400/oz - $500/oz • Blanket will generate significant attributab
Slide 15: Blanket Expansion Plan
Blanket Expansion Plan Capex declines sharply after 2017 25 • 2017 Capex revised upwards to reflect increased investment in underground mine development and material handling infrastructure to further enhance 20 operational flexibility 19.9 • Front-loading of capital purchases: specific items 17.8 1
Slide 16: Dividend
Dividend A track record of sustainable and increasing dividends Dividend Sector Comparison – 29th March 2017 10% 9.2% 9% 8% 7% Dividend Yield 6% 5.2% 5% 4.1% 3.8% 4% 3.2% 3% 2.3% 2% 1.4% 1% 0% Centamin Pan African Resources Polymetal Caledonia Highland Gold Acacia Randgold Payout Ratio 77% 58% 47% 2
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 • Highly experienced management team with experience of similar projects • 97% of the capex is generated by cash flows from mining existing higher- confidence re
Slide 18: Investment Case
Investment Case • Strong dividend yield • Industry leading dividend yield with payments sustainable over the long term • Management anticipate maintaining the current dividend through any future capital investment requirement • High margin operations • All-in Sustaining costs of $912/oz for 2016 • D
Slide 19: Contacts
Contacts Caledonia Mining PR (UK): Blytheweigh Website: www.caledoniamining.com Tim Blythe, Camilla Horsfall Share Codes: TSX - CAL; OTCQX – CALVF; Tel: +44 (0) 207 138 3204 AIM - CMCL Contact: AIM Broker/Nomad: WH Ireland Mark Learmonth Adrian Hadden Tel: +44 (0) 207 220 1666 Tel: +44 (0) 1534 702
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 Indigenized Zimbabwean Gold Miner
Blanket Gold Mine, Zimbabwe The First Indigenized 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 (Jersey) Blanket Mine Manager Caxton Mangezi Independent Dir
Caledonia Mining — Investor Presentation (April 2017) on 6ix