Caledonia Mining Corporation Plc · AMEX:CMCL
Caledonia Mining — Investor Presentation (June 2020)
21 slides from Caledonia Mining's investor presentation, June 2020
Slide 1: Caledonia Mining Corporation Plc June 2020
co Caledonia Mining @y Corporation Pic June 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: Agenda
1. Company Overview: building a solid foundation 2. Central Shaft: near-term, low-risk growth 3. Attractive new opportunities in Zimbabwe
Slide 4: Company Overview
Company Overview Building a solid foundation 4
Slide 5: Caledonia Mining: Overview
Caledonia Mining : Overview • Established, profitable gold producer, now expanding production from the Blanket Mine in the Gwanda Greenstone Belt, Zimbabwe Caledonia: • Jersey domiciled company; listed on NYSE MKT, TSX and AIM Profitable gold producer • US$14.1m in cash at 24 April 2020 • P/E of 6.8
Slide 6: Building a solid track record
Building a solid track record Production growth, good cost control and capital investment Caledonia Mining has a track record of rising production and declining unit operating costs. This has delivered strong operating cash flow to support significant capital investment 2015 2016 2017 2018 2019 CAGR
Slide 7: Recent Positive News Flow
Recent Positive News Flow A series of favourable events as Caledonia delivers its strategy July 24, 2019 Completion of shaft sinking at Central shaft project October 16, 2019 Stabilization of electricity supply situation in Zimbabwe January 3, 2020 Increase of quarterly dividend by 9.1% January 13,
Slide 8: Capital Structure & Financials
Capital Structure & Financials Relative Performance Capital Structure 500 Shares in issue (m) * 11.5 450 400 Options (m) 0.038 Relative performance rebased to 100 350 300 250 Cash (24 April 2020) $14.1m 200 150 Net Assets (31 March 2020) $132m 100 50 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 Li
Slide 9: Resources
Resources Increased exploration expenditure bears fruit Consistent resource replacement despite growing production (250koz mined since 2011) 2,000 1,800 1,600 Contained Ounces (koz) 1,400 963 1,200 887 1,000 623 800 419 408 398 390 462 550 600 425 55 353 62 56 362 55 267 400 172 193 223 87 157 144 1
Slide 10: Dividend
Dividend A long-standing commitment to paying a dividend • Caledonia has paid dividends since 2012 Cumulative Dividend Distributions of $2.34 per share since 2012 – Initial dividend of 5 Canadian cents paid Feb 2013 2.5 0.25 associated with share consolidation – Annual dividend of 5 Canadian cents f
Slide 11: Central Shaft: Near-term growth
Central Shaft: Near-term growth 11
Slide 12: Investing in growth to 80koz/year from 2022
Investing in growth to 80koz/year from 2022 Constructing a new mine below the current workings (2015 to 2020) 6m diameter, 4-compartment shaft from surface to 1,200m. Scheduled for commissioning late 2020 Shaft sinking completed in July 2019; currently shaft equipping Mining and exploration access b
Slide 13: New Central Shaft drives development of sub-750m zones
New Central Shaft drives development of sub-750m zones Constructing a new mine below the current workings Central Shaft No. 4 Shaft Jethro Shaft 22 Level No. 6 Winze (750m) Plan illustrative and not to scale 13
Slide 14: New infrastructure is transformational for the Blanket Mine
New infrastructure is transformational for the Blanket Mine Improves haulage and worker logistics Sinking completed mid 2019, currently in a 12-month equipping phase Commissioning and ramp-up expected in H2 2020 14
Slide 15: Strong free cash flows expected from 2020 onwards
Strong free cash flows expected from 2020 onwards Declining capex and increasing cash generation 45 Cash flow forecast from M&I Resources only as Historic Data 40 per NI 43-101 Technical Report • Production post 2022 is expected to come from a combination of Measured, Indicated and Inferred Resource
Slide 16: Attractive new opportunities in Zimbabwe
Attractive new opportunities in Zimbabwe 16
Slide 17: The Zimbabwe Opportunity
The Zimbabwe Opportunity World-class gold potential: under-explored and under-capitalized Historic & current 1Moz+ producers Significant regional potential • Zimbabwe has historically produced over 45 million ounces of gold • Prior to 2000, Zimbabwe produced more gold than Mali, Tanzania, Burkina Fa
Slide 18: The Zimbabwe Opportunity: Evaluation Criteria
The Zimbabwe Opportunity Evaluation Criteria • New investment opportunities in Zimbabwe where surplus cash arising from Central Shaft could be deployed • Brownfield projects • modest initial acquisition cost • modest initial resource base • further investment over 2-3 years with the objective of ide
Slide 19: Zimbabwe: Challenging but grounds for optimism
Zimbabwe Challenging but grounds for optimism • Government has a commercial and pragmatic approach with several encouraging policy measures • Genuine attempts to stimulate investment e.g. the removal of indigenisation requirement • Government is reducing its spending, increasing its tax base and add
Slide 20: Investment Case - Summary
Investment Case - Summary 14 years of high margin operations with upside potential • A strong track record and robust operator • highly profitable and cash generative • strong management team: proven track record and excellent in-country relations • Substantial, near-term, fully-funded production gr
Slide 21: Contacts
Contacts Website: www.caledoniamining.com Share Codes: NYSE MKT and AIM – CMCL North America IR (3ppb LLC) : TSX - CAL Patrick Chidley, Paul Durham Caledonia Contacts: Tel : +1 917 991 7701; +1 203 940 2538 Mark Learmonth, CFO European IR: Swiss Resource Capital Tel: +44 (0) 1534 679 800 Jochen Stai