Caledonia Mining Corporation Plc · AMEX:CMCL
Caledonia Mining — Q2 2017 Earnings Presentation
15 slides from Caledonia Mining's earnings presentation, Aug 21, 2017
Slide 1: Q2 2017 Results Overview
eo Caledonia Mining AS Corporation Pic Q2 2017 Results Overview <a Prin ies eS Pw Anes r Ae
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 (“Caledonia”), nor shall it (or any part of it) or the fact of its distribution, form the basis of,
Slide 3: Q2 2017 Results Summary
Q2 2017 Results Summary Production was flat and unit operating costs were higher for the quarter 3 months to 30 June yoy % 6 months to 30 June yoy % Comment 2016 2017 Change 2016 2017 Change Little change in production in the Quarter: higher ore Gold produced (oz) 12,510 12,521 +0% 23,332 25,315 +8%
Slide 4: Income Statement
Income Statement Higher costs, taxation and share based payment expenses led to a decrease in EPS Summary P&L (US$m) 3 months ended June 30 6 months ended June 30 • Quarter-on-quarter revenues yoy % yoy % were flat in line with production 2016 2017 2016 2017 Change Change and gold price Revenue 15.7
Slide 5: Production and Revenues
Production and Revenues Effect of Changes in Production, Gold Price 3 months to 30 June 6 months to 30 June Production and Revenues % change % change 2016 2017 2016 2017 Tonnes Milled (000's) 120,590 136,163 +13% 235,117 260,388 +11% Average grade (g/t) 3.47 3.08 -11% 3.315 3.25 -2% Average recovery
Slide 6: Gold Production
Gold Production Operations remain on track for 80,000 ounces by 2021 Quarterly Production • Tonnes milled continue to trend higher although lower 16 14 grade mined during the quarter adversely affected both production and unit operating costs Gold Produced (k.oz) 12 10 • Underground logistical const
Slide 7: Production Costs
Production Costs Costs remain contained although lower grade had an adverse effect H1 2016 H1 2017 Change On-mine cost ($/oz) 658 677 +3% • Blanket did not experience significant All-in Sustaining Cost ($/oz) 937 856 -9% inflationary pressure on input costs Tonned Milled (t) 235,117 260,388 +11% • C
Slide 8: General & Administrative Costs
General & Administrative Costs G&A costs 9% down year-on-year H2 2016 H2 2017 Change • G&A costs for the 6 months to June 30 were Investor relations 269 243 -10% 9% lower year on year as costs trend Eersteling gold mine holding costs 56 66 +18% downwards thanks to reductions in once-off Audit fee 17
Slide 9: Taxation
Taxation Deferred taxation represents a significant portion of the tax charge Analysis of Taxation Charge for Q2 2017 Blanket Mine CMSA Total Income tax 871 83 954 Withholding tax on management fees 400 - 400 Deferred tax 767 (31) 736 2,038 52 2,090 • The effective tax rate in Q2 2017 was over 60%,
Slide 10: Earnings per Share
Earnings per Share Lower earnings is anticipated to be temporary 50 Quarterly Adjusted EPS 39.0 40 30.5 Adjusted EPS (USc) 30 26.5 22.0 19.0 18.4 18.9 20 12.9 14.7 13.5 9.3 8.8 7.5 10 4.5 0.0 0 -10 -2.4 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17
Slide 11: Cash Flow
Cash Flow Strong cash generation despite significant investment and dividends Q2 2016 Q2 2017 H1 2016 H1 2017 • Cash from operating activities Cash flows from operating activities remains robust despite lower Cash generated from operations 7,902 5,459 9,835 7,874 grade and higher production Net inte
Slide 12: Dividend
Dividend A track record of sustainable and increasing dividends Dividend Peer Comparison 8% 7.1% 6.7% 7% 6% 4.7% Dividend Yield 5% 4.3% 4.2% 4% 3.5% 3% 2% 1.0% 1% 0% Centamin Highland Gold Pan African Resources Caledonia Acacia Polymetal Randgold Payout Ratio 83% 90% 26% 58% 47% 43% 38% Dividends ef
Slide 13: Balance Sheet
Balance Sheet Financial position is set to remain robust through the investment cycle Jun-16 Jun-17 • Caledonia Mining’s balance sheet has Fixed Assets 64,917 71,021 remained strong through a period of Current Assets cyclically low gold prices and significant Inventories 7,222 8,064 capital investme
Slide 14: Operational Matters
Operational Matters • Underground logistical constraints – Despite improvements in 2015 and 2016, tramming constraints on 22 level make it difficult to achieve production tonnage and move development waste – H1 2017 production of 25,315 is expected to be surpassed in H2 and guidance of 52,000 – 57,0
Slide 15: Outlook
Outlook • Focus remains on the investment programme to increase production to 80,000 ounces by 2021 – Creates greater operational flexibility for continued deep-level exploration and development • Guidance for 2017 of 52,000 to 57,000 ounces – On mine cash costs are forecast to be $615-$645 per ounc