Caledonia Mining Corporation Plc · AMEX:CMCL
Caledonia Mining — FY2016 Earnings Presentation
15 slides from Caledonia Mining's earnings presentation, 2017
Slide 1: FY 2016 Results Overview
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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: FY 2016 Results Summary
FY 2017 Results Summary Record gold production and reduced costs support strong cash generation 3 months to 12 months to yoy % 31 December 31 December Comment Change 2015 2016 2015 2016 Record gold production in the Year and Quarter due to Gold produced (oz) 11,515 13,591 42,804 50,351 +18% increase
Slide 4: Income Statement
Income Statement Increased production and lower costs delivered a strong increase in EPS 3 months ended 12 months ended yoy % • Increased revenues reflected higher Summary P&L (US$m) December 31 December 31 Change production and a higher gold price 2015 2016 2015 2016 • Costs for the full year remai
Slide 5: Production and Revenues
Production and Revenues Effect of Changes in Production, Gold Price 3 months to 31 December 12 months to 31 December Production and Revenues % change 2015 2016 2015 2016 Tonnes Milled (000's) 115,079 142,169 440,079 510,661 +16% Average grade (g/t) 3.34 3.21 3.25 3.3 +2% Average recovery (%) 93.1 92
Slide 6: Dividend
Dividend A track record of sustainable and increasing dividends Dividend Peer Comparison 6% 5.2% 5.1% 5% 3.8% 4% Dividend Yield 3.2% 3% 2% 1.7% 0.8% 0.8% 1% 0% Pan African Resources Polymetal Caledonia Highland Gold Centamin Acacia Randgold Payout Ratio 58% 98% 31% -188% 35% -10% 33% • Following the
Slide 7: Gold Production
Gold Production Operations remain on track for 80,000 ounces by 2021 • Blanket mine set new quarterly and annual production Quarterly Production records with quarterly production increasing to 13,590 16 ounces as a result of increased tonnes milled. Annual 14 guidance was achieved with the productio
Slide 8: Production Costs
Production Costs Costs remain contained and unit costs continue to trend downwards FY 2016 FY 2015 Change Gold produced (oz) 50,351 42,804 +18% • Blanket did not experience significant On-mine cost ($/oz) 636 701 -9% inflationary pressure on input costs All-in Sustaining Cost ($/oz) 912 1,037 -12% A
Slide 9: General & Administrative Costs
General & Administrative Costs G&A costs were 5% lower for the year FY 2016 FY 2015 Change • Higher IR reflects increased coverage in UK and Investor relations 543 513 +6% Europe Audit fee 267 240 +11% • Caledonia has concluded an agreement for the Listing fees 328 206 +59% sale of Eersteling Gold M
Slide 10: Earnings per Share
Earnings per Share Earnings are beginning to show a return on Blanket investment 10 Quarterly Adjusted EPS 7.80 8 Adjussted EPS (USc) 6.10 6 4.40 3.80 3.68 4 2.94 2.70 2.58 1.87 1.76 1.50 2 0.90 0 -0.49 -2 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 FY
Slide 11: Cash Flow
Cash Flow Strong cash generation despite significant investment and dividends YTD 2016 YTD 2015 • Cash from operating activities Operating Cash Flow remains robust, boosted by higher Cash flows from operating activities 25,671 8,823 production volumes and a stronger Net Interest paid (194) (492) gol
Slide 12: Cash Generation and Capital Investment
Cash Generation and Capital Investment Growth in cash despite investments of $20m and dividends of $3m Cash flows and net cash balance: 2015 - 2016 Actual and forecast Capex: 2015 - 2018 $25 25 $20.6 $20 $19.2 20 19.9 17.8 18 $14.7 Capex (US$'m) $15 15 $12.4 $m $11.3 $10.9 $10.6 $10 $8.8 10 $7.2 $7.
Slide 13: Balance Sheet
Balance Sheet Financial position is set to remain robust through the investment cycle Dec-16 Dec-15 Fixed Assets 64,917 49,276 • Caledonia Mining’s balance sheet has Current Assets remained strong through a period of cyclically Inventories 7,222 6,091 low gold prices and significant capital Prepayme
Slide 14: Operational Issues
Operational Issues Good performance with mitigation plans in place for issues • Central Shaft is progressing well – Achieved a depth of 633 meters as at February 28 2017 – Unstable electricity supply from grid has impeded work and requires the installation of equipment to protect Blanket’s equipment
Slide 15: Outlook
Outlook Increased cash generation and declining capex • Focus remains on the investment programme 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 contin