Caledonia Mining Corporation Plc · AMEX:CMCL
Caledonia Mining — FY2013 Earnings Presentation
20 slides from Caledonia Mining's earnings presentation, March 2014
Slide 1: Results Presentation for Quarter and Year to December 2013
CALEDONIA MINING CORPORATION www.caledoniamining.com Company Presentation Results Presentation for Quarter and YearAugust to December 31,2011 December 2013 March 2014
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, nor shall it (or any part of it) or the fact of its distribution, form the basis of, or be relied on in connection wit
Slide 3: Contents
Contents • Results Highlights • Summary Financials • Safety • Gold Production • Costs • Exploration and Development • Nama • Outlook 3
Slide 4: Results Highlights
Results Highlights Adjusted earnings in-line with consensus forecasts Caledonia – Results Highlights Year Year 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 2013 Gold production (oz) I 45,465 10,472 11,588 12,042 11,429 45,527 On-Mine Cash Costs (US$/gold oz) Ii 570 653 587 558 666 613 All-in Sustaining Cost
Slide 5: Summary Profit and Loss
Summary Profit and Loss Summary Profit and Loss (C$'m) • Q4 production 11,429oz; Q4 sales 9,454oz; WIP at end 2013 1,978oz. 2012 2013 • Average realised gold price in Q4 2013, US$1,277 – Year Q1 Q2 Q3 Q4 Year 25% lower than Q4 2012 Revenues 75.2 19.2 17.2 16.6 12.1 65.1 Royalty -5.3 -1.3 -1.1 -1.2 -
Slide 6: Summary Profit and Loss: Reconciliation to Consensus Forecast
Summary Profit and Loss Reconciliation of Actual Results to Consensus Forecast • After adjusting for non-recurring, non-cash items, Caledonia’s 2013 earnings were in-line with analysts forecasts. Reconciliation of Actual 2013 Results to Analyst Consensus C$'000's Actual 2013 attributable profit -3 1
Slide 7: Summary Balance Sheet
Summary Balance Sheet Summary Balance Sheet (C$'m) • Strong balance sheet: $25m of cash held outside Zimbabwe 2012 2013 Year Q1 Q2 Q3 Q4 – Modest overdraft in Zimbabwe Fixed Assets 36.5 38.0 42.2 43.7 33.4 • Fixed asset movement reflects $14.2m write off and Inventories 5.5 4.9 5.7 6.0 6.9 Prepaymen
Slide 8: Summary Cash Flows
Summary Cash Flows Summary Cash Flow (C$'m) • Operational cash flows reduced due to lower sales, lower gold price and $3m increase in working capital 2012 2013 from December 2012 as trade receivables are Year Q1 Q2 Q3 Q4 YTD normalised. Cash flow from operations 41.4 5.4 5.8 7.1 3.6 21.9 Advance div
Slide 9: Safety
Safety • Blanket’s accident and injury rate is low by Zimbabwean and regional standards. • Following an accident in Q3 2013 which resulted in the fatality of one employee. Blanket management has increased measures to ensure that the prescribed safe working procedures are adhered to • NOSA, a South A
Slide 10: Gold Production
Gold Production Source: Caledonia MD&A’s Source: Caledonia MD&A’s • Gold production has quadrupled since Q1 2010 and has largely exceeded guidance • Increased production from 2010 following completion of the No. 4 Shaft: ore production target of 1,000tpd • Increased gold production was also due to i
Slide 11: Costs
Costs • Q4 2013 cash costs adversely affected by closing work-in-progress of 1,975 ounces • If all Q4 production had been sold, Q4 on-mine cash cost would have been US$600/oz (cf US$666/oz) and All-in sustaining cost US$970/oz (cf US$ 1,175/oz) 11
Slide 12: Blanket Gold Mine, Zimbabwe: Exploration and Development
Blanket Gold Mine, Zimbabwe Exploration and Development L14 Haulage L18 Haulage L22 Haulage Planned L26 Haulage No. 6 Winze Planned L30 Haulage Current exploration areas
Slide 13: Exploration and Development: Blanket
Blanket Gold Mine, Zimbabwe Exploration and Development: Blanket • Extensions to the 14 and 18 Level Haulages will open up new mining areas – 14-Level haulage reached Lima in Q2 2013: exploration and development work is in progress to upgrade the existing resource base – 18 Level haulage reached its
Slide 14: Exploration and Development: No. 6 Winze
Blanket Gold Mine, Zimbabwe Exploration and Development: No. 6 Winze • Exploration to improve our understanding of the inferred Blanket ore bodies below 750m • Deepen existing No. 6 Winze Project to 1080m and develop new 26 & 28 Level Haulages – New winder chamber and sinking and stage winders insta
Slide 15: Exploration and Development - Winze Project
Blanket Gold Mine, Zimbabwe Exploration and Development - 6 Winze Project Collar level for Stage Winches before installation Collar level completed installation
Slide 16: Exploration and Development: No. 6 Winze Stage on 22 Level
Blanket Mine, Zimbabwe Exploration and Development: No. 6 Winze Stage on 22 Level
Slide 17: Exploration and Development: Satellite Projects
Blanket Gold Mine, Zimbabwe Exploration and Development: Satellite Projects 18 exploration projects located on the Gwanda greenstone belt • GG Project (7km from Blanket) − Exploration shaft sunk to 120m. Stations on 60m, 90m &120m − Underground exploration and development continues − Metallurgical t
Slide 18: Nama
Nama Fully impaired in 2013 • Initial focus at Nama prior to 2009 was on the potential to be a major primary cobalt producer • Metallurgical test work showed that only a small proportion of the identified resources (i.e. the “D-Type” ore) could be treated to produce cobalt hydroxide; the remainder c
Slide 19: Outlook
Outlook • The start to 2014 at Blanket has been difficult but development has been planned and is in progress which should allow mine production to catch up the likely shortfall in production in Q1 of 2014. – The 2014 production target remains at 48,000 ounces of gold • The investment environment in
Slide 20: Contacts
Contacts Website: www.caledoniamining.com Tickers: TSE - CAL; OTCQX – CALVF; AIM - CMCL Stefan Hayden, President and CEO UK Investor Relations: BlytheWeigh Tel: +27 11 447 2499 Tim Blythe, Halimah Hussain, Camilla Horsfall Email: shayden@caledoniamining.com Tel: +44 20 7138 3204 Mark Learmonth, Vice