| Press release
ST. HELIER, Jersei, November 14, 2018 (GLOBE NEVSVIRE) – Caledonia Mining Corporation Plc ("Caledonia" or "Compani") (NISE AMERICAN: CMCL; AIM: CMCL; TSKS: CAL) announces its operational and financial results for the third quarter of 2018 ("K3" or "Quarter").
Gold production in the quarter amounted to 13,978 ounces, 2.9 per cent below the quarter ending September 30, 2017 ("comparable quarter"); the production of gold for the nine months to 30 September 2018 amounted to 39,558 ounces, which is by 0.4 per cent less than the same period of 2017. Corrected earnings per share for a quarter of 33.1 cents was 17 percent lower than the comparable quarter, weaker gold price and increased production costs, but by 24.4 percent higher for the nine months to 30 September 2018 in comparison with the same period of 2017 due to increased stimulus for export credits and higher average prices of gold prices for nine months. Net cash from operating activities remained robust at $ 6.8 million, although it was lower than the comparable quarter that was an unusually strong quarter. Net cash at the end of the quarter amounted to $ 5.9 million.
| 3 months to 30 September | 9 months to 30 September | Comment | |||||||
| 2017 | 2018 | % Chg | 2017 | 2018 | % Chg | ||||
| Gold manufactured (oz) | 14,396 | 13,978 | -2.9 | % | 39,710 | 39,558 | -0.4 | % | Gold production in the quarter was lower than a comparable quarter due to lower levels. |
| Cost per ounce per ounce ($ / oz)[1] | 638 | 670 | 5.0 | % | 663 | 691 | 4.2 | % | Costs on the mine increased due to higher maintenance costs and increased costs of individual consumables. |
| All Sustainable Costs ($ / oz) ("AISC") | 773 | 754 | -2.5 | % | 827 | 812 | -1.8 | % | The AISC decreased, regardless of the higher costs on the mine, primarily due to the greater incentive of export credits ("ECI"). |
| The average price of gold ($ / oz) | 1,265 | 1,190 | -5.9 | % | 1,238 | 1,259 | 1.7 | % | The average value of gold prices after refusing 1,25% discount for early settlement by the refinery and reflecting the prevailing market prices. |
| Total profit [2] | 7.229 | 4.846 | -33.0 | % | 17,910 | 16,213 | -9.5 | % | Gross profit in the quarter was lower compared to the comparable quarter due to a decrease in revenues and increased production costs. |
| Net profit attributable to shareholders | 3,120 | 2,224 | -28.7 | % | 6.152 | 7,982 | 29.7 | % | The net profit attributable to shareholders was lower in the quarter than the comparable quarter due to low gross profits, the effect of which was reduced by increased ECIs and reduced administrative costs. |
| Adjusted basic earnings per share ("EPS")[3] (cents) | 39.9 | 33.1 | -17.0 | % | 86.9 | 108.1 | 24.4 | % | Adjusted EPS was lower in quarter than a comparable quarter primarily due to lower profits attributable to shareholders. |
| Net cash and cash equivalents | 11,830 | 5.896 | -50.2 | % | 11,830 | 5.896 | -50.2 | % | Net cash and cash equivalents were lower due to the continued high level of capital expenditures. |
| Net cash from operating activities | 10,118 | 6,759 | -33.2 | % | 16,598 | 12,588 | -24.2 | % | Net cash from operating activities was lower due to reduced operating profit. |
1 "Cost of the mine per ounce", "AISC" and "average price of gold price" are Non-IFRS Measures.
2 Gross profit after deduction of royalties, costs of production and depreciation, but before administrative expenses, other income, interest and costs of financing and tax
3 Adjust EPS is a non-MSFI measure aimed at reflecting Caledonia's normal commercial performance.
Commenting on the results, Steve Curtis, Chief Executive Officer, said:
"The third quarter of 2018 (" quarter ") was an improvement in the second quarter of the year: we have addressed some of the operational challenges that business has experienced in the previous quarters; cost control has remained good, and Caledonia has stabilized its cash position and movement in working capital. "
"Production of the third quarter of 2017 (" comparable quarter ") amounted to 13,978 ounces, which is less than 3%, and slightly below our expectations. We decided to sharpen and slightly reduce our production guidelines in the full year 2018 from our original range of 55,000 to 59,000 ounces in the range of 54,000 to 56,000 ounces. "
"Grade for the quarter was below the expectation of 3.12 g / t, as we continued to experience a slight mining dilution due to the introduction of long holes stopping in the narrower widths of the ridge for safety reasons. Corrective measures were taken to improve the drilling accuracy, which is expected to will result in improved mined classes in the remainder of the last quarter of 2018 and beyond. We remain convinced that the basic geological model for Blanket and the level of resources remains healthy. I am pleased that the mine could to a certain extent compensate for the lower value these plants through increased throughput, an effort that has contributed significantly to the performance of the quarter. Not that during the quarter, they were significantly higher to 151,000 tons, which is 14 percent more than in the second quarter of 2018 and 11 percent higher than the comparable quarter. "
"The working capital returned to normal levels during the quarter after some significant unwanted movements in the previous quarter. The net cash of $ 5.9 million at the end of the quarter was a modest improvement in the previous quarter, and the ability of our business to generate money is still robust. Cash flows after tax in the quarter following movements in working capital were $ 6.8 million, sufficient to support capital investments during the quarter of $ 5.2 million and a quarterly payment of dividends to shareholders of Caledonia. "
"The central shaft has now reached a depth of 1,148 meters and continues to progress well. We expect that the capital will be reduced as we progress towards the commissioning of the central branch in 2020. The Central Shaht Project is a key factor for long-term value for our shareholders, and until 2021. We are progressing towards the goals of production and costs. "
"Our quarterly costs were satisfactory, especially given the expected level. Satisfactory costs were on the mine and all completely: the mining costs of 670 dollars per ounce for the quarter were 5 percent higher than the comparable quarter due to increased maintenance costs of equipment and spending costs.The total maintenance cost of $ 754 per ounce was 2.5 per cent below the comparative quarter, as we continue to use the higher ECI. We remain convinced of our long-term target price for directing from $ 700 to $ 800 per ounce, and by 2021 Sales growth of kre will reach 80,000 ounces a year. "
"Recent changes in the banking environment in Zimbabwe and the chronic lack of foreign exchange in Zimbabwe can present challenges in terms of inflation in operating costs and the ability to implement the capital investment program on Blanket and external cash from Zimbabwe. Operations at Blanket are currently continuing the usual situation is closely monitored by the management and received the highest level of attention from the monetary and government authorities of Zimbabwe. Caledonia is actively and constructively engaged at the appropriate levels in the government on a regular basis on a continuous and continuous basis. "
"We are also pleased to announce that on November 5, 2018, we entered into a legally binding sales agreement with one of the indigenous shareholders of Blanket Mine (Private Limited) (Blanket mine), Fremiro Investments (Private) Limited, to buy its 15% shareholding in the Blanket mine in exchange for the issuance of 727,266 new ordinary shares in Caledonia at a price of $ 7.15 per piece and canceling the balance of their relief. When this transaction is subject to different conditions, the share Caledonia in the Blanket mine will increase to 64 ods and Fremiro will keep 6.4 percent of Caledonia's diluted capital. This transaction is an important step for Caledonia and I look forward to updating the market as the transaction progresses. "
Caledonia continues to consolidate Blanket Mine for reporting purposes, and the operational and financial information listed below is at 100 percent, unless otherwise indicated.
Strategy and Perspectives
Caledonia remains on track to reach the production target of 80,000 orances annually by 2021 in its Zimbabwe branch, Blanket Mine. The strategic focus of Caledonia is the Central Shaft Project, which is expected to expand my life by allowing deeper production levels and further research. The Board and managers of Caledonia believe that the successful completion of the Central Axis is in the best interests of all stakeholders, as it is expected to result in increased production, lower operating costs and increased flexibility for further research and development, thus preserving and improving the long-term "future of the future." Difficulties in obtaining a sufficient foreign currency loan can jeopardize Caledonia's ability to implement the Central Gate project as planned. Caledonia intends to assess additional investment opportunities in Zimbabwe which may not fall below Blanket's property.
Dividend Polici
Caledonia is paying a quarterly dividend of 6,875 US cents per share at the end of January, April, July and October. Profitability and the creation of cash The blanket of the mines remains strong, however, Caledonia's ability to pay dividends depends on the ability of its group to make payments from Zimbabwe.
For further information contact:
| Caledonia Mining Corporation Plc Mark Learmonth Maurice Mason |
Tel: +44 1534 679 802 Tel: +44 759 078 1139 |
| VH Ireland Adrian Hadden / Ed Allsopp / Jessica Cave |
Tel: +44 20 7220 1751 |
| Blitheve Tim Blithe / Camilla Horsfall / Megan Rai |
Tel: +44 207 138 3204 |
Note: This announcement contains internal information published in accordance with the Regulation on Market Abuse.
Warning note regarding future information
The information and statements contained in this press release, which are not historical facts, are "prospect information" in terms of applicable security legislation that includes risks and uncertainties related to, but not limited to, current expectations, intentions, plans and beliefs in Caledonia. The information that is forwarded can often be identified by using future words such as "anticipate", "believe", "expect", "target", "plan", "target", "intend", "needs", "can "and" will "or negative of these expressions or similar words that suggest future outcomes or other expectations, beliefs, plans, goals, assumptions, intentions, or statements of future events or performance. Examples of information relating to the future in this news report include: production guidelines, estimates of future / target production rates, as well as our plans and times and the schedule for further research and drilling and development This information in the future is partly based on assumptions and factors that may change or prove to be inaccurate, which results in actual results, performance or achievements materially different from those expressed or implied by information that is Such factors and assumptions include, but are not limited to, the failure to establish the estimated sources and reserves, the evaluation and recovery of ore mined depending on estimates, the success of future programs The research and drilling reliability, drilling reliability, sampling and analysis data, the assumptions about the representativity of mineralization are incorrect, the success of the planned metallurgical testing, capital and operating costs vary considerably from estimates, delays in obtaining or failure to obtain the necessary governmental, environmental or other approvals project, inflation, exchange rate, fluctuation in commodity prices, delays in project development and other factors.
Security owners, potential security owners, and other potential investors should be aware that these statements are the subject of known and unknown risks, uncertainties, and other factors that might really differ significantly from those that propose future-related statements. Such factors include, but are not limited to: risks related to estimates of mineral reserves and mineral resources that prove incorrect, the fluctuation of gold prices, risks and dangers associated with the research, development and mining of mineral resources, the risks related to credit value or financial state of suppliers, refiners and other parties with which the Company operates; inadequate insurance or inability to insure, to cover these risks and hazards, employee relationships; relations with local communities and indigenous populations and demands; political risk; Availability and increase of costs related to mining inputs and operations; the speculative nature of the research and development of mineral resources, including the risks of obtaining or maintaining the necessary permits and permits, reducing the quantity or rating of mineral reserves as mining; global financial situation, actual results of current exploration activities, changes in the conclusions of economic assessments and changes in project parameters to address unexpected economic or other factors, increased capital and operating costs risks, environmental, security or regulatory risks, expropriation, property title, including ownership above them, increased competition in the mining industry for assets, equipment, qualified personnel and their costs, risks related to the uncertainty of weather d including the increase in targeted production and currency fluctuations. Security carriers, potential security keepers, and other potential investors were warned not to put unnecessarily reliance on information in the future. By nature, information relating to the future implies a number of assumptions, inherent risks and uncertainties, both general and specific, which contributes to the prospects of forecasts, forecasts, projections and various future events. Caledonia does not undertake to publicly update or otherwise revise any future information, either as a result of new information, future events or other such factors that affect this information, unless required by law.
| Consolidated consolidated profit and loss account and other comprehensive income | |||||||||
| ($ & # 39; 000) | 3 months ended on September 30th |
9 months ended on September 30th |
|||||||
| 2017 | 2018 | 2017 | 2018 | ||||||
| Income | 18,230 | 16,647 | 50,163 | 50,904 | |||||
| Roialti | (913 | ) | (834 | ) | (2,512 | ) | (2,549 | ) | |
| Production costs | (9,080 | ) | (9,948 | ) | (26,992 | ) | (29,255 | ) | |
| Depreciation | (1.008 | ) | (1.019 | ) | (2,749 | ) | (2,887 | ) | |
| Total profit | 7.229 | 4.846 | 17,910 | 16,213 | |||||
| No other arrival | 663 | 1,663 | 1,864 | 4.764 | |||||
| Administrative costs | (1.607 | ) | (1,423 | ) | (4,541 | ) | (4.625 | ) | |
| Foreign exchange (loss) / profit | (3 | ) | (275 | ) | 16 | (115 | ) | ||
| Payment based on cash participation | (73 | ) | (113 | ) | (607 | ) | (450 | ) | |
| Equity-based payments | – | – | (835 | ) | (14 | ) | |||
| Margin call the hedge | – | (360 | ) | – | (360 | ) | |||
| Operating profit | 6.209 | 4.338 | 13,807 | 15,413 | |||||
| Net financial costs | (7 | ) | (97 | ) | (24 | ) | (142 | ) | |
| Profit before tax | 6,202 | 4.241 | 13,783 | 15,271 | |||||
| Tax expense | (2.326 | ) | (1.204 | ) | (5.876 | ) | (5,101 | ) | |
| Profit for the period | 3,876 | 3,037 | 7,907 | 10,170 | |||||
| Other comprehensive income / (loss) | |||||||||
| Items that are or may be reclassified to profit or loss | |||||||||
| Differences in foreign currencies for foreign operations | (110 | ) | (69 | ) | 23 | (509 | ) | ||
| Total comprehensive income for the period | 3,766 | 2,968 | 7,930 | 9,661 | |||||
| Profit attributable to: | |||||||||
| Shareholders of the Company | 3,120 | 2,224 | 6.152 | 7,982 | |||||
| Non-binding interests | 756 | 813 | 1.755 | 2,188 | |||||
| Profit for the period | 3,876 | 3,037 | 7,907 | 10,170 | |||||
| Total comprehensive income attributable to: | |||||||||
| Shareholders of the Company | 3,010 | 2,155 | 6,175 | 7.473 | |||||
| Non-binding interests | 756 | 831 | 1.755 | 2,188 | |||||
| Total comprehensive income for the period | 3,766 | 2,968 | 7,930 | 9,661 | |||||
| Earnings per share (cents) (i) | |||||||||
| Basic | 29.4 | 20.4 | 57.0 | 73.8 | |||||
| Diluted | 29.4 | 20.4 | 56.9 | 73.7
|
|||||
| Adjusted earnings per share (cents) (i) (ii) | |||||||||
| Basic | 39.9 | 33.1 | 86.9 | 108.3 | |||||
| Comprehensive Consolidated Cash Flow Statement (unaudited) ($ & # 39; 000) |
|||||||||
| 3 months ended September 30 | 9 months ended on September 30th |
||||||||
| 2017 | 2018 | 2017 | 2018 | ||||||
| Cash flow from operational activities | |||||||||
| Cash originated from operations | 11,652 | 7,013 | 19,526 | 15,446 | |||||
| Net interest paid | (116 | ) | (105 | ) | (121 | ) | (187 | ) | |
| Tax paid | (1,418 | ) | (149 | ) | (2,807 | ) | (2,671 | ) | |
| Net cash from operating activities | 10,118 | 6,759 | 16,598 | 12,588 | |||||
| Cash flows used in investment activities | |||||||||
| Acquisition of property, plant and equipment | (8.056 | ) | (5.234 | ) | (15,575 | ) | (16.010 | ) | |
| Net cash used in investment activities | (8.056 | ) | (5.234 | ) | (15,575 | ) | (16.010 | ) | |
| Cash flows from financing activities | |||||||||
| Dividends paid | (964 | ) | (584 | ) | (2,416 | ) | (2,345 | ) | |
| Loan repayment | (375 | ) | (375 | ) | (1,125 | ) | (1,125 | ) | |
| Share repurchase | – | – | (146 | ) | – | ||||
| Share questions | 84 | – | 84 | – | |||||
| Net cash used in financial activities | (1,255 | ) | (959 | ) | (3,603 | ) | (3,470 | ) | |
| Net increase / (decrease) in cash and cash equivalents | 807 | 566 | (2.580 | ) | (6,892 | ) | |||
| Impact of exchange rate fluctuations on cash | 145 | 22 | 75 | 32 | |||||
| Net cash and cash equivalents at the beginning of the period | 10,878 | 5.308 | 14,335 | 12,756 | |||||
| Net cash and cash equivalents at the end of the period | 11,830 | 5.896 | 11,830 | 5.896 | |||||
| Comprehensive Consolidated Financial Statements | ||||||||
| (in thousands of US dollars, unless otherwise indicated) | ||||||||
| Unreasonable | ||||||||
| Like on | September 30, | December 31, | ||||||
| 2018 | 2017 | |||||||
| Resources | ||||||||
| Property, plant and equipment | 95,208 | 82,078 | ||||||
| Deferred tax assets | 87 | 65 | ||||||
| Total long-term assets | 95,295 | 82,143 | ||||||
| Supplies | 9,651 | 9,175 | ||||||
| Subscriptions | 924 | 709 | ||||||
| Stores and other receivables | 5,786 | 4.962 | ||||||
| Cash and cash equivalents | 9,827 | 13,067 | ||||||
| Total current assets | 26,188 | 27,913 | ||||||
| total assets | 121,483 | 110,056 | ||||||
| Capital and liabilities | ||||||||
| Share capital | 55,102 | 55,102 | ||||||
| Reserves | 142,957 | 143,452 | ||||||
| Retained loss | (129,487 | ) | (135,287 | ) | ||||
| Equity attributable to shareholders | 68,572 | 63,267 | ||||||
| Необавезујући интереси | 7.685 | 5,944 | ||||||
| Укупни капитал | 76,257 | 69,211 | ||||||
| Пасива, дугови | ||||||||
| Одредбе | 3.731 | 3,797 | ||||||
| Одложена пореска обавеза | 23,138 | 19,620 | ||||||
| Плаћања засноване на акцији на основу уплате | 2,320 | 1,826 | ||||||
| Укупно неквалитетне обавезе | 29,189 | 25,243 | ||||||
| Краткорочни дио термо-кредитног објекта | 374 | 1,486 | ||||||
| Трговинске и друге обавезе | 11,628 | 12,660 | ||||||
| Пореза на приход | 104 | 1,145 | ||||||
| Прекорачење банке | 3.931 | 311 | ||||||
| Укупно текуће обавезе | 16,037 | 15,602 | ||||||
| Укупне обавезе | 45,226 | 40,845 | ||||||
| Укупни капитал и обавезе | 121,483 | 110,056 | ||||||
