Caledonia Mining Corporation Plc · AMEX:CMCL
Caledonia Mining — Q3 2020 Earnings Presentation
18 slides from Caledonia Mining's earnings presentation, November 2020
Slide 1: Q3 2020 Results Presentation
Q3 2020 Results Presentation November 2020
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 Plc (“Caledonia”), nor shall it (or any part of it) or the fact of its distribution, form the basis
Slide 3: Introduction
Introduction 1. Strategy update 2. Review of operations 3. Review of financial results for Q3 2020 4. Outlook 3
Slide 4: Strategy
Strategy Increased free cash flow to grow dividends and invest for further production Short-Medium Term (2021 – 2022): Complete the Central Shaft project and ramp-up production 1. Increase production to 61-67,000 ounces in 2021 and 80,000 ounces per annum from 2022 • 45% production increase 2019 to
Slide 5: Strategy: Blanket offers significant exploration potential at depth
Strategy Blanket offers significant exploration potential at depth Section View Central Shaft will replace the current production shaft by 2021. Current planned development for Central Shaft is to open three new operating levels through conventional horizontal development and a fourth operating leve
Slide 6: Operating Review
Operating Review 6
Slide 7: Review of Operations
Review of Operations Tonnes Milled & Grade (2011 – Q3 2020) • Tonnes milled improved on Q3 2019 due to management initiatives e.g. the Nyanzvi initiative and revisions to the bonus 5 200,000 structure. Tonnes Milled (t) Head Grade (g/t) 4.5 150,000 4 100,000 3.5 3 50,000 2.5 - Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q
Slide 8: COVID-19
COVID-19 No effect on production; minor delay to Central Shaft • $331,000 of incremental operating costs in Q3 relating to COVID-19 (approx. $24/oz) • Donations to the Chamber of Mines and communities of $1 million to assist with Covid-19 • Operations during the 3-week lockdown (in early April) ran
Slide 9: Financial Results
Financial Results 9
Slide 10: Results Summary Information
Results Summary Information 3 months ended September 30 9 month ended September 30 % Comment 2019 2020 % Change 2019 2020 Change Higher gold production due to increased tonnes milled. Production includes 1,803 Gold produced (oz) 13,646 15,155 11% 38,306 42,887 12% ounces of work-in-progress, which i
Slide 11: Review of Results
Review of Results Profit and loss 3 months ended September 30 9 month ended September 30 % % 2019 2020 2019 2020 Chg Chg Revenue 19,953 25,359 27% 52,393 71,874 37% 2% decrease in gold sold; 27% higher average realised gold price Royalties (999) (1,271) 27% (2,682) (3,599) 34% Royalty at 5%. Product
Slide 12: Review of Results: Production costs
Review of Results Production costs 3 Months ended September 30 % Change Comment 2019 2020 Salaries and wages 2,912 3,099 6% Increased production bonuses Consumable materials 4,033 4,234 5% Includes $331k of COVID-costs Electricity costs 1,885 2,238 19% Includes $544k of genset use (quarterly average
Slide 13: Review of Results: Cash Flow
Review of Results Cash Flow 3 months ended September 30 2019 2020 Change Cash generated by operations before working 5,597 8,970 60% capital Rebuild inventories and critical spares to increase Working capital (711) (1,577) 108% resilience Cash generated from operations 4,886 7,393 51% Net interest p
Slide 14: Review of Results: Balance Sheet
Review of Results Balance Sheet September 30 December 31 Balance Sheet 2020 2019 Fixed Assets 124,028 113,714 Continued expenditure at Central Shaft Current Assets Inventories 14,280 11,092 Rebuild inventories for resilience Prepayments 4,254 2,350 Prepayments for consumables and capital items Trade
Slide 15: Review of Results: Other matters
Review of Results Other matters • In the Q2 2020 the Caledonia Board approved a 12 Mwac solar plant project to supplement the current power from Gensets and the local power utility. • The plant is expected to supply Blanket with 27% of future power requirements during the daylight. • Estimated cost
Slide 16: Outlook
Outlook 16
Slide 17: Medium to Long-term Goals
Medium to Long-term Goals Build a mid tier gold producer with minimal dilution • Commission Central Shaft • Increase production to 61-67,000 ounces per annum 2021 61,000 – 67,000oz/yr • Review dividend policy • In-country acquisitions and investment in exploration projects • Central Shaft fully oper
Slide 18: Contacts
Contacts Website: www.caledoniamining.com North America IR (3ppb LLC) : Share Codes: NYSE American – CMCL Patrick Chidley, Paul Durham AIM London SE – CMCL Tel : +1 917 991 7701; +1 203 940 2538 Caledonia Contacts: European IR: Swiss Resource Capital Mark Learmonth, CFO Jochen Staiger Tel: +44 (0) 1