Caledonia Mining Corporation Plc · AMEX:CMCL
Caledonia Mining — Q3 2022 Earnings Presentation
29 slides from Caledonia Mining's earnings presentation, November 2022
Slide 1: Q3 Results Presentation 2022
Q3 Results Presentation 2022
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: Results Summary
Results Summary 3 months ended September 30 9 months ended September 30 2021 2022 Change (%) 2021 2022 Change (%) Production (ounces) 18,965 21,120 10% 48,872 59,726 18% Average gold price ($ per ounce)1 1,764 1,696 -4% 1,766 1,792 1% Revenue ($’m) 33.5 35.8 6% 89.2 107.9 17% Gross Profit ($’m) 2 15
Slide 4: Safety
Safety Q3 2021 Q3 2022 Fatalities 0 0 Lost Time Injuries 0 1 Lost Time Injury Frequency Rate 0.12 0.22 Occupational Illnesses 0 0 • Increase in Blanket headcount over last 12 months • Nyanzvi now resumed following relaxation in COVID-19 restrictions NYSE/AIM/VFEX: CMCL 4
Slide 5: Production
Production • 21,120 ounces of gold produced in the Quarter – a record for any quarter. • Higher production due to increased tonnes milled. • Central shaft currently hoists waste; No.4 shaft hoists ore. • 16,500 tonne ore stockpile at quarter end contains approx. 1,750 ounces of recoverable gold (not
Slide 6: Exploration
Exploration • Caledonia acquired the Maligreen claims in November 2022 following which it has reviewed the previous geological work with a view to upgrading the Mineral Resources. • Revised NI 3-101 resource statement published on November 7, 2022 • Measured and Indicated Mineral Resources of 8.03 m
Slide 7: Review of Results
Review of Results Profit or loss 3 months ended 9 months ended September 30 September 30 Change Change ($’m) 2021 2022 (%) 2021 2022 (%) Revenue 33.5 35.8 6% 89.2 107.9 17% 11% increase in gold sales; 4% decrease in gold price. Royalty (1.7) (1.8) 6% (4.5) (5.4) 17% 5% increase in on-mine costs. 1%
Slide 8: Review of Results: Production Costs
Review of Results Production Costs 3 months ended 9 months ended September 30 September 30 Change Change ($’m) 2021 2022 2021 2022 (%) (%) Increase due to mandatory wage increases in Zimbabwe, increased Wages and salaries1 5.0 5.2 4% 13.9 17.1 19% headcount and higher production bonuses 11% increase
Slide 9: Review of Results: G&A
Review of Results G&A 3 months ended 9 months ended September 30 September 30 ($’000's) 2021 2022 Change (%) 2021 2022 Change (%) Investor relations 91 95 4% 302 489 38% Increased investor information focus. Audit fee 37 70 47% 169 206 18% Increase in legal fees due to Advisory service fees 90 504 8
Slide 10: Review of Results: Cost per ounce
Review of Results Cost per ounce 3 months ended 9 months ended September 30 September 30 Change Change ($/0z) 2021 2022 (%) 2021 2022 (%) 5% increase in on-mine costs. 1% due to inflationary increases, 2% due to On-mine cost1 695 734 5% 743 709 -5% unforeseen maintenance and repairs. Increased All-i
Slide 11: Review of Results: Taxation
Review of Results Taxation ($’000’s) Zimbabwe South Africa UK Total Income tax 2,004 143 - 2,147 Withholding tax - management fees - 38 - 38 - deemed dividend 32 - - 32 Deferred tax 1,460 (49) - 1,411 CHZ dividends to GMS - - 390 390 Total Taxation charge 3,496 132 390 4,018 Cash tax paid 2,352 - 39
Slide 12: Review of Results: Cash Flow
Review of Results Cash Flow 3 months ended September 9 months ended September 30 30 ($’m) 2021 2022 Change (%) 2021 2022 Change (%) Increased due to higher operating profit partly Cash flow before working capital 15.5 13.7 -13% 38.9 40.7 4% offset by non-cash unrealised FX losses. Reduction in inven
Slide 13: Review of Results: Balance Sheet
Review of Results Balance Sheet ($’m) Dec 31, 2021 Sep 30, 2022 Non-current assets 157.9 188.0 Continued investment at Central Shaft and solar plant. Current assets (excl. cash) 35.8 32.4 Cash and equivalents 17.2 8.3 Total assets 210.9 228.7 Equity attrib. to shareholders 161.3 182.0 Non-controllin
Slide 14: Review of Results: Cash
Review of Results Cash ($’m) Mar 31, 2021 Jun 30, 2021 Sept 30, 2021 Dec 31, 2021 Mar 31, 2022 Jun 30, 2022 Sep 30, 2022 Zimbabwe 2.2 3.2 2.1 8.1 5.8 8.9 0.9 South Africa 1.7 3.2 1.7 0.6 1.9 0.9 0.9 UK/Jersey 9.1 10.4 9.2 7.5 6.7 1.1 4.4 Total net cash 13 16.7 13 16.3 14.4 10.9 6.2 • Figures show ne
Slide 15: Motapa Acquisition
Motapa Acquisition NYSE/AIM: CMCL 15
Slide 16: About the Motapa claims
About the Motapa claims HIGHLY 0PROSPECTIVE, LARGE CLAIMS, STRATEGICALLY SITUATED • Caledonia considers Motapa to be highly prospective and strategically important to its growth ambitions in Zimbabwe, both in location and scale. • Motapa is a large property contigious to the Bilboes Gold project. Ca
Slide 17: Bilboes Gold Transaction
Bilboes Gold Transaction NYSE/AIM: CMCL 17
Slide 18: Bilboes Gold Transaction Highlights
Bilboes Gold Transaction Highlights A LARGE SCALE, LOW COST, LONG LIFE GOLD PROJECT • Caledonia has signed an agreement to purchase Bilboes for a total consideration of 5.12m Caledonia shares representing approximately 28.5% of Caledonia’s fully diluted equity, and a 1% NSR on the Project Maligreen
Slide 19: About Bilboes
About Bilboes ONE OF THE PREMIER GOLD DEVELOPMENT PROJECTS IN AFRICA • Bilboes was formerly owned and explored by Anglo American Corporation Zimbabwe Limited prior to its exit from the Zimbabwean gold sector in the late 1990s after which it was acquired by the current owners • The project is approxi
Slide 20: Production
Production COMBINED GROUP CONSOLIDATED PRODUCTION WILL BE IN EXCESS OF 240 THOUSAND OUNCES 243koz 1. Production data for Bilboes is based on the DRA feasibility study. Refer to the technical report entitled "BILBOES GOLD PROJECT FEASIBILITY STUDY" with effective date 15 December 2021 prepared by DRA
Slide 21: Operating Costs
Operating Costs AVERAGE LIFE OF MINE CASH COSTS OF $719/OZ • The combined group will have an overall cost profile of well below $1,000/oz giving investors a substantial margin of safety in the event of lower gold prices • Increasing costs in later years are as a result of increases in the strip rati
Slide 22: Transaction Structure
Transaction Structure THE TRANSACTION WILL BE SETTLED BY THE ISSUE OF NEW EQUITY IN CALEDONIA AND A 1% NSR Infinite Treasure 1,900,708 Existing Bilboes Baker Steel Resources Trust Existing Caledonia Baker Steel Shareholders will also be granted a 1% NSR Resources Trust Shareholders 5,123,044 Toziyan
Slide 23: Conditions Precedent
Conditions Precedent THE TRANSACTION IS SUBJECT TO THE FOLLOWING CONDITIONS PRECEDENT • An arrangement with the Zimbabwe authorities which allows inter alia: o that Bilboes Holdings will be able to export gold directly and to retain 100 per cent of the sale proceeds in US dollars over the life of mi
Slide 24: Comparison to African Gold Projects - Grade
Comparison to African Gold Projects - Grade Source – Bloomberg, Company Public Statements, Company Technical Reports NYSE/AIM/VFEX: CMCL 24
Slide 25: Comparison to African Gold Projects - Scale
Comparison to African Gold Projects - Scale Source – Bloomberg, Company Public Statements, Company Technical Reports NYSE/AIM/VFEX: CMCL 25
Slide 26: Comparison to African Gold Projects - Price
Comparison to African Gold Projects - Price Source – Bloomberg, Company Public Statements, Technical Reports Note: Abujar and Bombore are already in construction, Nyanzaga is at pre feasibility stage, all other comparators are at feasibility study stage NYSE/AIM/VFEX: CMCL 26
Slide 27: Tribute Arrangement
Tribute Arrangement SHORT TERM CASH FLOW AVAILABLE THROUGH A TRIBUTE AGREEMENT • Bilboes has an on-site oxide mining and metallurgical plant which has previously produced up to 20,000 ounces of gold pa but is on care and maintenance • Caledonia will enter a tribute agreement with Bilboes to mine and
Slide 28: Dividend
Dividend COMMITTED TO RETURN MONEY TO SHAREHOLDERS QUARTERLY DIVIDEND PAYMENTS 16 Quarterly dividend of 14 US$0.14 (14c) 12 Dividend yield 10 5.5% CENTS PER SHARE 8 *as 11 October 2022 6 Dividend payer since 4 2012 2 0 104% Increase Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2018 2018
Slide 29: Contacts
Contacts Website: www.caledoniamining.com Twitter: @CaledoniaMining Investment Research Cenkos Securities: www.cenkos.com Liberum: www.liberum.com Share Codes: NYSE American / AIM / VFEX – CMCL Cantor Fitzgerald: www.cantor.com Standard Bank: www.standardbank.com Caledonia Mining VFEX Advisor: IH Gr