Source - LSE Regulatory
RNS Number : 0580F
Caledonia Mining Corporation PLC
17 March 2022
 

Caledonia Mining Corporation Plc

Results for the Year ended December 31, 2021

Notice of Management Conference Call

(NYSE AMERICAN: CMCL; AIM: CMCL; VFEX: CMCL)

St Helier: March 17th, 2022

Caledonia Mining Corporation Plc ("Caledonia" or the "Company") announces its operating and financial results for the year ended December 31, 2021 (the "Year").  Further information on the financial and operating results for the Year and the quarter ended December 31, 2021 (the "Quarter" or "Q4") can be found in the Management Discussion and Analysis ("MD&A"), and the audited financial statements which are available on the Company's website and which have been filed on SEDAR.   

 2021 Financial Highlights

·    Gross revenues of $121 million (2020: $100 million).

·    Gross profit of $54.1 million (2020: $46.7 million).

·    EBITDA of $46.4 million (2020: $45.4 million).

·    On-mine cost per ounce[1] of $742 (2020: $744).

·    Normalised all-in sustaining cost per ounce1 (i.e. excluding the effect of the export credit incentive and its successor scheme) of $990 (2020: $967).

·    Adjusted earnings per share1 of 226 cents (2020: 204 cents).

·    Net cash from operating activities of $30.9 million (2020: $30.9 million).

·    Net cash and cash equivalents of $17.2 million (2020: $19.1 million).

·    Total dividend paid of 50 cents per share, a 49 per cent increase from 2020.  

 

Operating Highlights

·    67,476 ounces of gold produced in the Year (2020: 57,899 ounces); record annual production at Blanket Mine.

·    The Central Shaft was commissioned in the first quarter of 2021 and the final stages of underground development and infrastructure are now being completed.

·    During Q4, Caledonia completed the acquisition of the mining claims at Maligreen in the Zimbabwe midlands which is estimated to host a NI 43-101 compliant inferred mineral resource of approximately 940,000 ounces of gold in 15.6 million tonnes at a grade of 1.88g/t[2].

 

Post Year-End events and Outlook

·    Regrettably, a fatal accident occurred on February 21, 2022.  The Directors and management of Caledonia and Blanket express their sincere condolences to the family and colleagues of the deceased.  Caledonia takes the safety of its employees very seriously and, accordingly, measures have been taken to reinforce adherence to prescribed safety procedures.

·    2022 gold production guidance of between 73,000 and 80,000 ounces.

·    Progress on the 12MWac solar plant has resumed following delays arising from the combined effects of COVID-19 and difficulties with the supply chain.  The plant is expected to provide approximately 27 per cent of Blanket's total daily electricity demand, improve Blanket's security of electricity supply and reduce its environmental footprint. It is anticipated that the project will be commissioned in June 2022.  

·    Following the installation of a further autotap transformer in December 2021, Blanket's consumption of diesel to generate electricity has substantially reduced.

 

Conference Call

Management will host a conference call on 21 March to discuss its 2021 results and the outlook for the Company.  The details for this call are set out towards the end of this announcement.

There will also be a results presentation video with management that will be available on the Caledonia website at https://www.caledoniamining.com/media/#corpvideos

Steve Curtis, Chief Executive Officer, commented:

"Operationally, the last 12 months have marked a turning point for the business. The Central Shaft has been a huge project costing approximately $67 million, all funded through internal cashflow and I am delighted that it was commissioned in the first quarter of 2021.

"Production in the Year was 67,476 ounces, which was above the top end of the guidance range and was a new record for annual production.  The robust operating performance was supported by good cost control and gross profit for the Year was $54.1 million - 16 per cent higher than 2020.  Cash generated from operations before working capital increased by 17 per cent from $42.4 million to $49.6 million.

"Now that the Central Shaft is commissioned, we expect further increases in production: guidance for 2022 is a range of 73,000 to 80,000 ounces while from 2023 onwards it is 80,000 ounces[3] - 38 per cent higher than in 2020.

"We continued to increase the dividend in 2021. The total dividends paid in 2021 were 50 cents per share - almost 50 per cent higher than in 2020. 

"To improve the quality and security of Blanket's electricity supply, minimise our environmental footprint and help create a more sustainable future for our business, Caledonia is constructing the first phase of a 12 MWac solar plant that will provide approximately 27 per cent of the average daily electricity demand at Blanket Mine. This project, which is expected to yield a modest return to shareholders, is expected to be completed in mid-2022.

"Caledonia's immediate strategic focus is to complete the remaining underground development associated with the Central Shaft project, which is expected to increase production, reduce operating costs and increase the flexibility to undertake further exploration and development at depth, thereby safeguarding and enhancing Blanket's long-term future. We also believe there is excellent exploration potential in the older shallower areas of the mine and in brownfield sites immediately adjacent to the existing Blanket footprint.   

"During the Year we acquired the mining claims at Maligreen in the Zimbabwe midlands which is estimated to host a NI 43-101 compliant inferred mineral resource of approximately 940,000 ounces of gold in 15.6 million tonnes at a grade of 1.88g/t.  Our immediate focus on this asset is to improve the confidence level of the existing resource base and we are currently re-assaying historic drill cores.  Thereafter we expect to prepare a feasibility study to commercialise the existing resource before we engage in further exploration on the claims area along strike, at depth and at a previously unexplored zone in the claims area.

"Our approach to new projects is highly disciplined: after further evaluation, the Company has decided not to exercise the options to acquire the Connemara North property as it does not meet our investment criteria. During the Year, we also divested non-core assets in the vicinity of Blanket.  Caledonia continues to evaluate further investment opportunities in the Zimbabwe gold sector with a view to transforming the Company into a mid-tier, multi-asset Zimbabwe-focussed gold producer."      

 

 

 

 

 

 

Conference Call Details

A presentation of the 2021 results and outlook for Caledonia is available on Caledonia's website (www.caledoniamining.com). Management will host a conference call at 3pm GMT on 21st March 2022.

Details for the call are as follows:

When: Mar 21, 2022 03:00 PM London

Topic: Q4 Results Call for Shareholders

 

Register in advance for this webinar:

https://caledoniamining.zoom.us/webinar/register/WN_AazuhoJORKie314N-VsIQQ

 

After registering, you will receive a confirmation email containing information about joining the webinar.

 

 

 

 

Mr Dana Roets (B Eng (Min.), MBA, Pr.Eng., FSAIMM, AMMSA), Chief Operating Officer, is the Company's qualified person as defined by Canada's National Instrument 43-101 and has approved any scientific or technical information contained in this news release.

Enquiries:

Caledonia Mining Corporation Plc

Mark Learmonth

Camilla Horsfall

 

Tel: +44 1534 679 802

Tel: +44 7817 841793

WH Ireland

Adrian Hadden/ Jessica Cave

 

Tel: +44 20 7220 1751

BlytheRay Financial PR

Tim Blythe/Megan Ray

 

Tel: +44 207 138 3204

3PPB

Patrick Chidley

Paul Durham

 

Tel: +1 917 991 7701

Tel: +1 203 940 2538

Curate Public Relations (Zimbabwe)

Debra Tatenda

 

Tel: +263 77802131

 

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.

Cautionary Note Concerning Forward-Looking Information

 Information and statements contained in this news release that are not historical facts are "forward-looking information" within the meaning of applicable securities legislation that involve risks and uncertainties relating, but not limited to Caledonia's current expectations, intentions, plans, and beliefs.  Forward-looking information can often be identified by forward-looking words such as "anticipate", "believe", "expect", "goal", "plan", "target", "intend", "estimate", "could", "should", "may" and "will" or the negative of these terms or similar words suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. Examples of forward-looking information in this news release include: production guidance, estimates of future/targeted production rates, and our plans and timing regarding further exploration and drilling and development.  This forward-looking information is based, in part, on assumptions and factors that may change or prove to be incorrect, thus causing actual results, performance or achievements to be materially different from those expressed or implied by forward-looking information.  Such factors and assumptions include, but are not limited to: failure to establish estimated resources and reserves, the grade and recovery of ore which is mined varying from estimates, success of future exploration and drilling programs, reliability of drilling, sampling and assay data, assumptions regarding the representativeness of mineralization being inaccurate, success of planned metallurgical test-work, capital and operating costs varying significantly from estimates, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and other factors.

 risks related to natural disasters, terrorism, civil unrest, public health concerns (including health epidemics or outbreaks of communicable diseases such as the coronavirus (COVID-19)); 

This news release is not an offer of the shares of Caledonia for sale in the United States or elsewhere. This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the shares of Caledonia, in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such province, state or jurisdiction.

 

  

 

 

Condensed Consolidated Statement of Profit of Loss and Other Comprehensive Income

 

 

3 months ended

 

12 months ended

 

($'000's)

December 31

 

December 31

 

 

2020

2021

 

2019

2020

2021

 

Revenue

28,128

32,136

 

75,826

100,002

121,329

 

Royalty

(1,408)

(1,612)

 

(3,854)

(5,007)

(6,083)

 

Production costs

(11,174)

(14,178)

 

(36,400)

(43,711)

(53,126)

 

Depreciation

(1,171)

(2,303)

 

(4,434)

(4,628)

(8,046)

 

Gross profit

14,375

14,043

 

31,138

46,656

54,074

 

Other income

29

4

 

2,274

4,765

46

 

Other expenses

(3,488)

(1,741)

 

(666)

(5,315)

(7,136)

 

Administrative expenses

(2,636)

(3,830)

 

(5,637)

(7,997)

(9,091)

 

Net foreign exchange (loss)/gain

(389)

843

 

29,661

4,305

1,184

 

Cash-settled share-based payment

(236)

(51)

 

(689)

(1,413)

(477)

 

Profit on sale of subsidiary

-

-

 

5,409

-

-

 

Fair value loss on derivative assets

(145)

(133)

 

(601)

(266)

(240)

 

Results from operating activities

7,510

9,135

 

60,889

40,735

38,360

 

Net finance costs

49

(7)

 

(198)

(305)

(361)

 

Profit before tax

7,559

9,128

 

60,691

40,430

37,999

 

Tax expense

(3,763)

(3,539)

 

(10,290)

(15,173)

(14,857)

 

Profit for the period

3,796

5,589

 

50,401

25,257

23,142

 

 

 

 

 

 

 

 

 

Other comprehensive income

 

 

 

 

 

 

 

Items that are or may be reclassified to profit or loss

 

 

 

 

 

 

 

Exchange differences on translation of foreign operations

973

(382)

 

49

(173)

(531)

 

Reversal of foreign exchange currency translation differences on disposal of subsidiary

-

-

 

(2,109)

-

-

 

Total comprehensive income for the period

4,769

5,207

 

48,341

25,084

22,611

 

 

 

 

 

 

 

 

 

Profit attributable to:

 

 

 

 

 

 

 

Shareholders of the Company

2,973

4,222

 

42,018

20,780

18,405

 

Non-controlling interest

823

1,367

 

8,383

4,477

4,737

 

Profit for the period

3,796

5,589

 

50,401

25,257

23,142

 

 

 

 

 

 

 

 

 

Total comprehensive income attributable to:

 

 

 

 

 

 

 

Shareholders of the Company

3,946

3,840

 

39,958

20,607

17,874

 

Non-controlling interest

823

1,367

 

8,383

4,477

4,737

 

Total comprehensive income for the period

4,769

5,207

 

48,341

25,084

22,611

 

 

 

 

 

 

 

 

 

Earnings per share (cents)

 

 

 

 

 

 

 

Basic

24.0

33.3

 

382.0

173.4

148.6

 

Diluted

23.9

33.3

 

381.5

173.2

148.5

 

Adjusted earnings per share (cents)3

 

 

 

 

 

 

 

Basic

74.9

42.1

 

145.1

204.2

225.9

 

Dividends declared per share (cents)

10.0

14.0

 

27.5

33.5

50.0

 

 

 

Condensed Consolidated Statement of Cash Flows

($'000's)

 

 

 

 

12 months ended December 31

 

 

 

2019

2020

2021

Cash flows from operating activities

 

 

 

 

 

Cash generated from operations

 

 

23,885

37,967

38,703

Net interest paid

 

 

(308)

(349)

(374)

Tax paid

 

 

(5,517)

(6,656)

(7,426)

Net cash from operating activities

 

 

18,060

30,962

30,903

 

 

 

 

 

 

Cash flows used in investing activities

 

 

 

 

 

Acquisition of property, plant and equipment

 

 

(20,024)

(25,081)

(32,112)

Acquisition of exploration and evaluation assets

 

 

-

(2,759)

(5,717)

Realisation (purchase) of gold ETF

 

 

-

(1,058)

1,066

Proceeds from sale of assets held for sale

 

 

-

-

500

Proceeds from disposal of subsidiary

 

 

1,000

900

340

Net cash used in investing activities

 

 

(19,024)

(27,998)

(35,923)

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

Dividends paid

 

 

(3,395)

(4,542)

(8,069)

Term loan repayments

 

 

-

(574)

(361)

Proceeds from gold loan

 

 

-

-

2,752

Proceeds from call option

 

 

-

-

208

Term loan proceeds (net of transaction cost)

 

 

2,294

-

-

Shares issued - equity raise (net of transaction cost)

 

 

-

12,538

7,806

Payment of lease liabilities

 

 

(124)

(118)

(129)

Proceeds from share options exercised

 

 

-

30

165

Net cash (used in)/from financing activities

 

 

(1,225)

7,334

2,372

 

 

 

 

 

 

Net (decrease)/increase in cash and cash equivalents

 

 

(2,189)

10,298

(2,648)

Effect of exchange rate fluctuations on cash held

 

 

(105)

(99)

(179)

Net cash and cash equivalents at beginning of the period

 

 

11,187

8,893

19,092

Net cash and cash equivalents at end of the period

 

 

8,893

19,092

16,265

 

 

 

Summarised Consolidated Statements of Financial Position

($'000's) 

 

As at

Dec 31

Dec 31

Dec 31

 

 

 

2019

2020

2021

Total non-current assets

 

 

113,714

133,334

157,944

Inventories

 

 

11,092

16,798

20,812

Prepayments

 

 

2,350

1,974

6,930

Trade and other receivables

 

 

6,912

4,962

7,938

Income tax receivable

 

 

-

76

101

Cash and cash equivalents

 

 

9,383

19,092

17,152

Derivative financial assets

 

 

102

1,184

-

Assets held for sale

 

 

-

500

-

Total assets

 

 

143,553

177,920

210,877

Total non-current liabilities

 

 

9,486

9,913

12,633

Loans and borrowings - short term portion

 

 

529

408

-

Lease liabilities - short term portion

 

 

112

61

134

Trade and other payables

 

 

8,348

8,664

9,957

Derivative financial liabilities

 

 

-

-

3,095

Income taxes payable

 

 

163

495

1,562

Overdraft

 

 

490

-

887

Cash-settled share-based payments - short term portion

 

 

-

336

2,053

Total liabilities

 

 

18,836

19,877

30,321

Total equity

 

 

124,717

158,043

180,556

Total equity and liabilities

 

 

143,553

177,920

210,877

               

 

 

 

[1] Non-IFRS measures such as "On-mine cost per ounce", "All-in sustaining cost per ounce" and "adjusted EPS" are used throughout this document.  Refer to section 10 of the MD&A for a discussion of non-IFRS measures.

[2] Refer to technical report entitled "Caledonia Mining Corporation Plc NI 43-101 Mineral Resource Report on the Maligreen Gold Project, Zimbabwe" by Minxcon (Pty) Ltd dated November 2, 2021 and filed on SEDAR on November 5, 2021.

[3] Refer to the technical report entitled "Caledonia Mining Corporation Plc NI 43-101 Technical Report on the Blanket Gold Mine, Zimbabwe" dated May 17, 2021 prepared by Minxcon (Pty) Ltd and filed by the Company on SEDAR (www.sedar.com) on May 26, 2021.

 

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