Slide 1: H1 2015 Results Overview
Caledonia Mining Corporation
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 Summary P&L (C#039;m) • Lower revenues due to lower production, sales and gold price offset by a weaker Canadian dollar. 3 Months to 30 6 Months to 30 June June • Lower royalty reflects a full quarter of the reduced 2014 2015 2014 2015 royalty rate, which was cut from 7% to 5%
Slide 4: Revenues
Revenues Effect of Changes in Production, Gold Price, FX Production and Revenues • Gold production and sales were 7% lower quarter- Revenue on-quarter, mainly due to the lower grade effect – The grade achieved in the Quarter was as Q2 2014 Q2 2015 Dif (%) (C#039;m) slightly better than planned Tonnes m
Slide 5: Gold Production
Gold Production • Quarterly production has stabilised at 10,000 ounces per quarter compared to over 12,000 ounces per quarter in mid-2012 • Q2 2015 production slightly better than target • Lower production is primarily due to lower grades which fell from 4.5g/t to 3.19g/t in Q1 2015, recovering in Q
Slide 6: Production Costs
Production Costs Production Costs • 19% increase in C$ terms; 6% increase in US$ terms – Cost per tonne milled increases by 1% Q2 2014 Q2 2015 Movt Production costs (C#039;m) 7.77 9.24 19% – Increased on-mine cost per ounce and AISC per ounce X-rate (1US$: C$) 1.09 1.23 reflects the lower grade Product
Slide 7: G&A
G&A General and Administrative Costs • 20% increase in C$ terms; 8% increase in US$ terms • Higher IR reflects increased coverage in UK and Europe H1 2014 H1 2015 Movt • No management contract fee following termination of the C#039;000 C#039;000 contract for the previous CEO Investor Relations 227 282 24%
Slide 8: Taxation
Taxation Taxation • Taxation is substantially lower than in 2014 Year – Total effective tax rate of 41% compared with 50% for 2014 2014 H1 2015 C#039;000 C#039;000 • Slow build-up of capital spend in H1 2015 did not completely shield SA Income Tax 745 278 Zimbabwe profit from Income tax Zimbabwe Income Ta
Slide 9: Earnings per Share
Earnings per Share Earnings Per Share (IFRS) H1 2014 H1 2015 • IFRS EPS affected by forex gains, deferred tax and discontinued C#039;000 C#039;000 operations Attrib earnings 4,265 1,878 • Adjusted EPS for H1 2015 of 5.2 cents Adj (88) Attrib earnings for EPS 4,265 1,790 W. av shares in issue (m) 52.1 52.1
Slide 10: Cash Flow
Cash Flow Summary Cash Flow (C#039;m) • Cash from operating activities remains robust despite lower production and 2014 2014 2014 2014 2015 2015 sales and the lower gold price Q1 Q2 Q3 Q4 Q1 Q2 Cash flow from operations 6.9 3.5 5.1 3.4 3.9 2.9 • Significant increase in capital investment Taxation paid
Slide 11: Balance Sheet
Balance Sheet Summary Balance Sheet (C#039;m) • Increase in PPE includes investment of $7.3m – Rate of capital expenditure increases as planned to implement 31 Dec 30-Jun the Revised Plan 2014 2015 – Adverse effect on RoE until related increase in production and Fixed Assets 40.4 48.3 profitability fro
Slide 12: 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 • Continue work on the GG and Masco