Caledonia Mining Corporation Plc · AMEX:CMCL
Caledonia Mining — Investor Presentation (September 2019)
18 slides from Caledonia Mining's investor presentation, September 2019
Slide 1: Caledonia Mining Corporation Plc – September 2019
co Caledonia Mining @y Corporation Pic September 2019
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: Company Overview
Company Overview 3
Slide 4: 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$7.9m in cash at 30 June 2019 • H1 2019
Slide 5: Strategy
Strategy Increase in free cash flow to grow dividends and invest in further growth Medium Term (2019 – 2022): Complete the Central Shaft Project 1. Increase annual production capacity to 80,000 ounces per annum* 2. Increased cash flows due to higher production, lower unit costs and reduced capex 3.
Slide 6: 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 rising production and declining unit operating costs, this has delivered solid and growing operating cash flow which has supported significant capit
Slide 7: Capital Structure & Financials
Capital Structure & Financials Relative Performance Capital Structure 350 Shares in issue (m) * 10.7 300 Options (m) 0.038 Relative performance rebased to 100 250 200 Cash (30 June 2019) $7.9m 150 Net Assets (30 June 2019) $114.7m 100 * Shares in issue reflect shares in issue at April 30, 2018. An a
Slide 8: Resources
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 9: 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 1,200m Scheduled for commissioning in 2020 Approx
Slide 10: 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 11: 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. Sinking completed mid 2019, currently in a 12 month equipping phase Commissioning and ramp up expected in H2 2020 11
Slide 12: Capital Capital Capital
Strong free cash flows expected from 2020 onwards Declining capex and increasing cash generation 45 Cash flow forecast from M&I Historic Data Resources only as per NI 43- 101 Technical Report • Production post 2022 is expected to 40 come from a combination of Measured, Indicated and Inferred Resourc
Slide 13: Unwinding of Indigenisation
Unwinding of Indigenisation Significant Opportunities and a Major Catalyst for Investment • 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 – Caledon
Slide 14: 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 15: Outlook
Outlook 15
Slide 16: Zimbabwe
Zimbabwe Despite regulatory uncertainty – there are significant grounds for optimism • Government has a commercial and pragmatic approach with several encouraging policy measures • Genuine attempts to stimulate investment e.g. the removal of indigenisation requirement in 2018 and recent relaxation o
Slide 17: Medium to Long-term Outlook
Medium to Long-term Outlook Vision to build a mid tier gold producer with minimal dilution • Commission Central Shaft 18 – 24 • Increase production capacity to 80,000 ounces per annum 70,000 – 80,000oz/yr Months by 2022 • Decrease AISC to $700 - $800 per ounce • Declining CAPEX post Central Shaft de
Slide 18: 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: European IR: Swiss Resource Capital Mark Learmonth, CFO Jochen Staiger Tel: +44 (0) 1534 679
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