Slide 1: H1 2016 Results Overview
Caledonia Mining Corporation H1 2016 Results Overview
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: Profit and Loss
Profit and Loss Overview 3 months ended 6 months ended Summary P&L (US$m) • Increased revenues reflected higher production and June 30 June 30 2015 2016 2015 2016 a higher gold price Revenue 12.2 15.7 25.1 29.1 • Costs remain under control and trending downwards Royalty (0.6) (0.8) (1.3) (1.5) Produ
Slide 4: Production and Revenues
Production and Revenues Effect of Changes in Production, Gold Price Production and Revenues Q2 2015 Q2 2016 % change Tones Milled (000's) 103,551 120,590 16% Average grade (g/t) 3.35 3.47 4% Average recovery (%) 93.3 93.1 -0.2% Gold Production (oz) 10,401 12,510 20% Average realised gold price ($/oz
Slide 5: Dividend
Dividend A track record of sustainable and increasing dividends Dividend Peer Comparison 6% 4,8% 5% 4,3% 4% Dividend Yield 3,1% 3% 2,6% 1,8% 2% 0,9% 1% 0,6% 0% Caledonia Highland Gold Pan African Polymetal Centamin Acacia Randgold Resources • Caledonia increased its quarterly dividend by 22% from 1.
Slide 6: Gold Production
Gold Production Quarterly Production • Quarterly production increased significantly to over 12k ounces as a result of increased tonnes milled and grade improvements – Production was boosted by improved access to resources below 750m in depth • Guidance remains on track for 2016 • Management is incre
Slide 7: Resource Upgrade
Resource Upgrade Exploration activities continue to bear fruit Resource Statement Ounces added in the Quarter Category Tonnes Grade (g/t) Contained Gold (oz) Orebody Tonnes Ave Width (m) Grade (g/t) Contained Gold (oz) Measured 1,177,079 4.01 151,657 Blanket Quartz Reef 611,000 3.82 5.80 103,000 Ind
Slide 8: Production Costs
Production Costs H1 2016 H1 2015 Change • Blanket did not experience significant inflationary Gold produced (oz) 23,332 20,360 15% pressure on input costs On-mine cost ($/oz) 658 718 -8% • Unit operating costs per ounce and per tonne milled All-in Sustaining Cost ($/oz) 943 1,007 -6% benefitted from
Slide 9: G&A
G&A H1 2016 H1 2015 Change • Higher IR reflects increased coverage in UK and Investor relations 269 228 18% Europe Eersteling gold mine holding costs 56 60 -7% • Management continue to investigate options for Professional consulting fees 510 266 92% the disposal of Eersteling Gold mine Audit fee 174
Slide 10: Earnings per Share
Earnings per Share Quarterly Adjusted EPS 7 6,10 6 5 Adjussted EPS (USc) 3,80 3,68 4 2,94 2,73 3 2,58 1,87 1,76 2 1,50 0,88 1 0 -1 -0,49 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Q2 2016 Q2 2015 • Q2 2016 represents Caledonia’s strongest results in Attributable Pro
Slide 11: Cash Flow
Cash Flow H1 2016 H1 2015 • Cash from operating activities remains Operating Cash Flow robust, boosted by higher production Cash generated by operating activities 9,835 3,874 volumes and a stronger gold price Net finance cost paid -90 -49 • The sale of treasury bonds in the quarter Net tax paid -781
Slide 12: Balance Sheet
Balance Sheet Jun-16 Dec-15 • Caledonia mining remains debt free with adequate cash Fixed Assets 55,817 49,276 resources and strong operating cash flow Current Assets • Dividends are comfortably covered by cash resources and Inventories 6,440 6,091 operating cash flows Prepayments 457 667 • Increase
Slide 13: Outlook
Outlook • Focus remains on implementing the Revised Investment Plan – 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 • The resumption of dividends from