Caledonia Mining Corporation Plc · AMEX:CMCL
Caledonia Mining — Q1 2017 Earnings Presentation
14 slides from Caledonia Mining's earnings presentation, May 2017
Slide 1: Q1 2017 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: Q1 2017 Results Summary
Q1 2017 Results Summary 18% increase in production and lower costs delivers a 96% improvement in EPS 3 months to 31 March yoy % Comment 2016 2017 Change Increased production due to increased tonnes milled, higher grade Gold produced (oz) 10,822 12,794 +18% and improved recoveries Lower cost per ounc
Slide 4: Income Statement
Income Statement Increased production and lower costs delivered a strong increase in EPS • Increased revenues reflected higher production and a higher gold price • Costs remain under control with on mine costs of $659 per ounce and AISC of $857 per ounce • Profitability for the quarter was boosted b
Slide 5: Production and Revenues
Production and Revenues Effect of Changes in Production, Gold Price 3 months to 31 March Production and Revenues % change 2016 2017 Tonnes Milled (000's) 114,527 124,225 +8% Average grade (g/t) 3.16 3.42 +8% Average recovery (%) 93 93.7 +1% Gold Production (oz) 10,822 12,794 +18% Average realised go
Slide 6: Gold Production
Gold Production Operations remain on track for 80,000 ounces by 2021 • Logistical improvements in 2015 and 2016 have Quarterly Production resulted in a sustained increase in tonnes milled. 16 However, constraints still exist coupled with an 14 increased development requirement prior to the Gold Prod
Slide 7: Dividend
Dividend A track record of sustainable and increasing dividends Dividend Peer Comparison 9% 8.0% 7.7% 8% 7% Dividend Yield 6% 5% 4.4% 4.3% 4% 3.4% 3% 2.0% 2% 1.2% 1% 0% Centamin Highland Gold Caledonia Pan African Resources Polymetal Acacia Randgold Payout Ratio 83% 90% 26% 58% 47% 43% 38% • Followi
Slide 8: Production Costs
Production Costs Costs remain contained and unit costs continue to trend downwards Q1 2016 Q1 2017 Change • Blanket did not experience significant On-mine cost ($/oz) 689 659 -4% inflationary pressure on input costs All-in Sustaining Cost ($/oz) 956 857 -10% Tonned Milled (t) 114,527 124,225 +8% • C
Slide 9: General & Administrative Costs
General & Administrative Costs G&A costs were flat year on year • Total G&A was broadly stable Q1 2016 Q1 2017 Change Investor relations 103 119 +16% • Increased employee costs due to stronger Audit fee 68 61 -10% South African rand (ZAR-denominated Listing fees 116 72 -38% employee costs fell) and
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 5.30 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-1
Slide 11: Cash Flow
Cash Flow Strong cash generation despite significant investment and dividends • Cash from operating activities remains Q1 2016 Q1 2017 robust, boosted by higher production Operating Cash Flow Cash flows from operating activities 1,933 2,415 volumes, a marginally stronger gold Net Interest paid (36)
Slide 12: Balance Sheet
Balance Sheet Financial position is set to remain robust through the investment cycle Mar-16 Mar-17 • Caledonia Mining’s balance sheet has Fixed Assets 64,917 67,399 Current Assets remained strong through a period of cyclically Inventories 7,222 7,312 low gold prices and significant capital Prepayme
Slide 13: Operational Matters
Operational Matters • Underground logistical constraints – Despite improvements in 2015 and 2016, tramming constraints on 22 level make it difficult to achieve production tonnage and move development waste – 2017 production guidance reduced from 60koz to 52-57koz so that the necessary development to
Slide 14: Outlook
Outlook • Focus remains on the investment programme to increase production to 80,000 ounces by 2021 – Creates greater operational flexibility for continued deep-level exploration and development • Guidance for 2017 of 52,000 to 57,000 ounces – On mine cash costs are forecast to be $615-$645 per ounc