Caledonia Mining Corporation Plc · AMEX:CMCL
Caledonia Mining — FY2017 Earnings Presentation
14 slides from Caledonia Mining's earnings presentation, March 2018
Slide 1: FY 2017 Results Overview
Cc Caledonia Mining @e Corporation Pic FY 2017 Results Overview
Slide 2: Disclaimer
Disclaimer This presentation about our results for the year ending 31 December 2017 (the “Year”) and fourth quarter of 2017 (the “Quarter” or “Q4”) 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 M
Slide 3: Results Highlights
Results Highlights Record gold production fuels improved profit and cash generation 3 months ended 12 months ended Comment December 31 December 31 2016 2017 2016 2017 Gold produced (oz) 13,591 16,425 50,351 56,133 Increased gold production due to higher tonnes milled and higher grade On-mine costs a
Slide 4: Safety
Safety • Two fatalities in 2017 and one further fatality in February 2018 – The first two fatalities were highly unusual – The third fatality, in February 2018, was the result of a fall of ground • Blanket has co-operated fully with the investigations by the police and the mines inspectorate • Blank
Slide 5: Income Statement
Income Statement Increased production and lower unit costs delivered higher EPS Summary P&L (US$'m) 3 Months ended 12 Months ended Y-o-y • Increased revenues primarily due to higher gold December 31 December 31 Change production 2016 2017 2016 2017 (%) Revenue 15.3 19.6 62.0 69.8 13% • “Headline” ro
Slide 6: Production and Revenues
Production and Revenues • Blanket set consecutive quarterly production records in Q3 and Q4 of 2017. Production for the Year was also a new record • Gold production and sales were 11% higher year on year, mainly due to increased production rates and a higher average grade • Tonnes milled continued t
Slide 7: Gold Production
Gold Production Operations remain on track to produce 80,000 ounces by 2021 • New quarterly production records in Q3 and Q4 of 2017. • Q1 and Q2 of 2017 were adversely affected by underground logistical issues which were addressed by: – improved scheduling of workers to reduce un- productive transpo
Slide 8: Production Costs
Production Costs Slight increase in the cost per tonne offset by improved grade Production Costs 3 Months ended 12 Months ended Y-o-y • Blanket did not experience significant inflationary December 31 December 31 Change ($'000's) 2016 2017 2016 2017 (%) pressure on input costs: Labour 2,764 2,778 11,
Slide 9: General & Administrative Costs
General & Administrative Costs G&A costs were 19% lower for the year G & A Costs 12 Months ended Y-o-y • Significant reduction in advisory services costs which were ($'000's) December 31 Change 2016 2017 unusually high in 2016 (%) • Employee costs include employee costs in South Africa, which Invest
Slide 10: Taxation
Taxation • Following the simplification of the Group tax structure, Caledonia pays tax in Zimbabwe and South Africa • Zimbabwe tax comprises: – income tax: 25% income tax rate; 100% offset of capital expenditure; no taxation on the export incentive. But: no relief for the royalty or (in 2017) on the
Slide 11: Cash Flow
Cash Flow Strong cash generation despite significant investment and dividends Summary Cash Flow (US$'m) 2015 2016 2017 • Cash from operating activities has increased substantially since 2015 as a result of higher production, a stronger gold price and Gold production (k.oz) 42.8 50.4 56.1 Average rea
Slide 12: Balance Sheet
Balance Sheet Robust financial position and a growing balance sheet Summary Balance Sheet (US$'m) 2015 2016 2017 • Increased fixed assets reflects the continued investment in the Central Shaft Fixed assets 49.3 64.9 82.1 Current assets - inventories 6.1 7.2 9.2 • Increased inventories reflects the i
Slide 13: Operational Issues
Operational Issues • Safety – A very disappointing performance, despite considerable management attention to this area – Management have increased focus on safety • Exploration – Good results from exploration at depth resulted in a resource upgrade in November – M&I gold ounces increase by 7% to 714
Slide 14: Outlook
Outlook • Focus remains on the investment program to increase production to 80,000 ounces by 2021 – Higher production and reduced costs will secure Blanket’s long term position as a low cost producer – Creates greater operational flexibility for continued deep-level exploration and development • At