Caledonia Mining Corporation Plc · AMEX:CMCL
Caledonia Mining — Denver Gold Forum September 2018
24 slides from Caledonia Mining's conference presentation, September 2018
Slide 1: September 2018
co Caledonia Mining @y Corporation Pic September 2018
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: Caledonia Mining: Overview
Caledonia Mining : Overview • Established, profitable gold producer, now expanding production from the Blanket Gold Mine in the Gwanda Greenstone Belt, Zimbabwe Caledonia: • Jersey domiciled company; listed on NYSE MKT, TSX and AIM Profitable gold producer • US$8.1m at 30 June 2018 • 2017 trailing P
Slide 4: Building a solid track record
Building a solid track record Built on production growth, good cost control and capital investment Caledonia Mining has built a solid track record with three years of rising production and declining unit operating costs, this has delivered solid and growing operating cash flow which has supported si
Slide 5: Quarterly Operating Metrics
Quarterly Operating Metrics 2017 2018 Q1 Q2 Q3 Q4 Q1 Q2 Tonnes Milled 124,225 136,163 136,064 150,755 123,628 132,585 Average Grade (g/t) 3.42 3.08 3.52 3.62 3.48 3.19 Average Recovery (%) 93.7 92.8 93.6 93.6 93.4 92.8 Gold Produced (oz) 12,794 12,518 14,396 16,425 12,924 12,657 Average Realised Gol
Slide 6: The Zimbabwe Opportunity
The Zimbabwe Opportunity World-class gold potential, under-explored and under-capitalized Historic & current 1Moz+ producers Significant regional potential • Zimbabwe has historically produced over 45 million ounces of gold • Several prolific multi million ounce gold belts: substantial potential for
Slide 7: Zimbabwe: signs of reform?
Zimbabwe: signs of reform? • November 2017: Mugabe forced from office by a popular mass-movement supported by the army – Emmerson Mnangagwa, previously a Vice-President becomes President • New President has driven through legislation aiming to stimulate inward investment – Removal of indigenisation
Slide 8: Zimbabwe: signs of reform? Caledonia's response
Zimbabwe: signs of reform? Caledonia’s response • Proposed increase in Caledonia’s shareholding in Blanket from 49% to 64% as local partners “flip-up” from Blanket to a shareholding at Caledonia – Transaction is modestly enhancing for NPV-per-share – Caledonia will evaluate further transactions to b
Slide 9: Capital Structure & Financials
Capital Structure & Financials Relative Performance Capital Structure 350 300 Shares in issue (m) * 10.6 Options (m) 0.046 Relative performance rebased to 100 250 200 Cash (30 June 2018) $8.1m 150 Net Assets (30 June 2018) $74.1m 100 * Shares in issue reflect shares in issue at June 30, 2018. An add
Slide 10: Resources: Increased exploration expenditure begins to bear fruit
Resources Increased exploration expenditure begins to bear fruit Consistent resource replacement despite growing production (250koz mined since 2011) 2,000 1,800 1,600 Contained Ounces (koz) 1,400 963 1,200 887 1,000 623 800 419 408 398 390 462 550 600 425 55 353 62 56 362 55 267 400 172 193 223 87
Slide 11: Significant Exploration Potential
Significant Exploration Potential Significant focus areas for exploration within the mine footprint 11
Slide 12: Exploration Opportunities at Blanket's satellite properties
Exploration Opportunities At Blanket’s satellite properties 12
Slide 13: Investing in growth: 45% growth to 80koz/year
Investing in growth : 45% growth to 80koz/year Constructing a new generation mine below the current workings Increase underground flexibility & rapid access to Blanket zone below 750m Secure mine life to 2031 New Central Shaft 6m diameter; surface to 1,330m Scheduled for commissioning in 2020 Approx
Slide 14: New Central Shaft drives development of sub-750m zones
New Central Shaft drives development of sub-750m zones Constructing a new generation mine below the current workings Central Shaft No. 4 Shaft Jethro Shaft 22 Level No. 6 Winze (750m) Plan illustrative and not to scale 14
Slide 15: New infrastructure is transformational for the Blanket Mine
New infrastructure is transformational for the Blanket Mine Central Shaft dramatically improves haulage and man movement management. Central Shaft is currently at a depth of 1,107m below surface 15
Slide 16: Blanket expansion: to drive substantial increase in earnings
Blanket expansion: to drive substantial increase in earnings • Blanket is anticipated to produce approximately 80koz by 2021 at an AISC of between $700/oz - $800/oz o Operating cash margin at $1,300/oz gold of between $500/oz - $600/oz • Blanket will generate significant attributable cash flows for
Slide 17: Capital Capital Capital
Strong free cash flows expected from 2020 onwards Declining capex and increasing cash generation 45 Cash flow forecast from M&I Resources only as Historic Data 40 per NI 43-101 Technical Report • Production post 2022 is expected to come from a combination of Measured, Indicated and Inferred Resource
Slide 18: Investment Case - Summary
Investment Case - Summary 14 years of high margin operations with upside potential • Substantial Production Growth : fully funded • 45% production growth planned • Rising expected cash generation from 2020 expected • Strong future cash generation leaves resources available for strategic purposes : t
Slide 19: Contacts
Contacts Website: www.caledoniamining.com North America IR (3ppb LLC) : Share Codes: NYSE MKT and AIM – CMCL Patrick Chidley, Paul Durham TSX - CAL Tel : +1 917 991 7701; +1 203 940 2538 Caledonia Contacts: Arrowhead BID: + 1 212-619-6889 Mark Learmonth, CFO European IR: Swiss Resource Capital Tel:
Slide 20: Appendices
Appendices
Slide 21: Location: excellent infrastructure, attractive working conditions
Other Information: Location : excellent infrastructure, attractive working conditions • Gwanda Greenstone Belt : One of Zimbabwe’s richest greenstone mining districts • Adequate infrastructure in place • Skills and labour freely available • Close enough to Johannesburg for easy supply of SA-sourced
Slide 22: Zimbabwe: Government actively supports the gold mining sector
Zimbabwe Government actively supports the gold mining sector • Government is pragmatic although constrained by a very weak economy Political Environment • Established, functional government administration • Recent relaxation of indigenisation legislation is a positive development for the sector, Bla
Slide 23: Blanket Gold Mine: The First Fully Indigenized Zimbabwean Gold Miner
Blanket Gold Mine, Zimbabwe The First Fully Indigenized 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
Slide 24: 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