Caledonia Mining Corporation Plc · AMEX:CMCL
Caledonia Mining — Q1 2020 Earnings Presentation
20 slides from Caledonia Mining's earnings presentation, May 2020
Slide 1: Q1 2020 Results Presentation
Q1 2020 Results Presentation May 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 Q1 2020 4. Outlook 3
Slide 4: Strategy
Strategy Increased free cash flow to grow dividends and invest for further production Short-Medium Term (2020 – 2022): Complete the Central Shaft Project 1. Increase production to 80,000 ounces per annum from 2022 2. Increased cash flows due to higher production, lower unit costs and reduced capex f
Slide 5: 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: Operations
Review of Operations Tonnes Milled & Grade (2011 – Q1 2020) • Grade in Q1 2020 was better than target 5 180,000 although lower than the preceding quarter 160,000 due to the scheduling of production in 4.5 140,000 terms of the mine plan. Tonnes Milled (t) Head Grade (g/t) 120,000 4 • Tonnes milled im
Slide 8: COVID-19
COVID-19 Operational impact and mitigating actions • Caledonia and Blanket Mine are responding actively to the COVID-19 Pandemic and the threat it poses to Blanket Mine’s employees, their families, the broader community and the continuity of its operations. • Regular interaction with Government heal
Slide 9: Financial Results
Financial Results 9
Slide 10: Results Summary Information
Results Summary Information Year on Year Change Q1 2019 Q1 2020 Comment (%) Gold production was 19% higher than in Q1 2019 due to increased tonnes milled, a Gold produced (oz) 11,948 14,233 19% higher grade and higher recovery On-mine cost per ounce On-mine cost per ounce decreased by 14.6% due to e
Slide 11: Review of Results: Profit and loss
Review of Results Profit and loss Quarter Ended Year on Year Mar-19 Mar-20 Change (%) Revenue 15,920 23,602 48% Increased production and a higher average realised gold price Royalty (819) (1,182) 44% Royalty payments were higher in line with increased revenue The increase in production costs was sma
Slide 12: Review of Results: Revenue reconciliation
Review of Results Revenue reconciliation Realised Gold Change in Production Price Gold Gold Tonnes Grade Recovery Ounces WIP Sales Ounces (98.75%) Revenues Revenues (t) (g/t) (%) (oz) (oz) (oz) ($/oz) (US$'m) (US$'m) Q1 2019 revenues 122,389 3.25 93.4 11,948 442 12,390 1,284 15.9 Change in tonnes 14
Slide 13: Review of Results: Production costs
Review of Results Production costs 3 Months to March 31 • The reintroduction of the Export Credit Incentive at a % Change 2019 2020 level of 25% during the quarter resulted in a significant Salaries and wages 3,766 3,948 4.8% improvement in AISC Consumable materials 2,824 3,857 36.6% Electricity cos
Slide 14: Review of Results: Cash Flow
Review of Results Cash Flow Mar-19 Mar-20 % Change • Significant non-cash adjustments to PBT are related to Forex Profit before Tax 12,238 12,589 3% gains and losses although lower than previous periods as Non-cash Adjustments for: currency devaluations are not as significant as previous Foreign Cur
Slide 15: Strong operating cash flow supports significant capital investment
Review of Results Strong operating cash flow supports significant capital investment Quarterly Operating Cash Flow and Capital Investment (2017 – 2020) 15.0 10.0 4.4 0.5 0.7 1.3 5.0 0.2 3.0 10.8 7.5 6.4 6.1 6.5 6.9 4.7 4.5 5.7 4.4 5.5 5.6 3.3 $m - (1.1) (0.7) (0.7) (2.9) (2.1) (4.2) (5.2) (5.6) (5.2
Slide 16: Balance Sheet
Review of Results Balance Sheet Balance Sheet Dec-19 Mar-20 • Non-current assets increased due to the continued Fixed Assets 113,714 116,609 investment in terms of the Central Shaft project and sustaining capital Current Assets • Total term debt stands at $1.6m Inventories 11,092 11,358 Prepayments
Slide 17: Other matters
Review of Results Other matters Hedging underpins cashflows until the high capital investment • High capital expenditure until mid-2020 requires a prudent approach to cash management is completed in mid 2020. Full • November 2019 Caledonia purchased put options over 4,600 ounces of gold per month fr
Slide 18: Outlook
Outlook 18
Slide 19: Medium to Long-term Goals
Medium to Long-term Goals Build a mid tier gold producer with minimal dilution • Commission Central Shaft now – 18 • Increase production to 80,000 ounces per annum 70,000 – 80,000oz/yr Months • Reduce AISC to $700 - $800 per ounce • Review dividend policy 2–4 • Declining CAPEX post Central Shaft del
Slide 20: Contacts
Contacts Website: www.caledoniamining.com North America IR (3ppb LLC) : Share Codes: NYSE American AIM – CMCL Patrick Chidley, Paul Durham TSX - CAL Tel : +1 917 991 7701; +1 203 940 2538 Caledonia Contacts: European IR: Swiss Resource Capital Mark Learmonth, CFO Jochen Staiger Tel: +44 (0) 1534 679