Share Name Share Symbol Market Type Share ISIN Share Description
Caledonia Min LSE:CMCL London Ordinary Share JE00BF0XVB15 COM SHS NPV (DI)
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +0.00p +0.00% 499.50p 495.00p 504.00p 499.50p 497.50p 499.50p 3,760 14:00:06
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Mining 37.4 11.3 9.6 53.8 52.96

Caledonia Mining Corporation PLC Results for the Third Quarter

13/11/2017 7:00am

UK Regulatory (RNS & others)

Caledonia Min (LSE:CMCL)
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RNS Number : 2253W

Caledonia Mining Corporation PLC

13 November 2017

Caledonia Mining Corporation Plc

Results for the Quarter and Nine Months to September 30, 2017


St Helier, November 13, 2017 - Caledonia Mining Corporation Plc ("Caledonia" or the "Company") announces its operating and financial results for the third quarter ("Q3" or the "Quarter") and nine months to September 30, 2017.

                           3 months             9 months        Comment 
                        ended September      ended September 
                              30                   30 
-------------------  -------------------  -------------------  --------------------------------- 
                        2016      2017       2016      2017 
-------------------  ---------  --------  ---------  --------  --------------------------------- 
                                                                Increased gold production 
 Gold produced                                                   in the quarter due to 
  (oz)                 13,428    14,396     36,760    39,710     higher grade 
-------------------  ---------  --------  ---------  --------  --------------------------------- 
                                                                On mine costs remain 
                                                                 broadly stable; slight 
                                                                 increase due to the short-term 
 On-mine cost                                                    effects of equipment 
  per ounce                                                      in new working areas 
  ($/oz)(1)             618        638       643        663      below 750 metres 
-------------------  ---------  --------  ---------  --------  --------------------------------- 
                                                                Lower AISC due to lower 
                                                                 administrative expenses 
                                                                 and sustaining capital 
 All-in sustaining                                               expenditure and the recognition 
  cost ($/oz)(1)                                                 of the export incentive 
  ("AISC")             1,004       773       971        827      credit in 2017 
-------------------  ---------  --------  ---------  --------  --------------------------------- 
 Average realised 
  gold price                                                    Realised gold price reflects 
  ($/oz)(1)            1,312      1,265     1,247      1,238     the market price 
-------------------  ---------  --------  ---------  --------  --------------------------------- 
                                                                Increased gross profit 
                                                                 due to higher production 
 Gross profit                                                    and sales, offset by 
  (2)                  6,780      7,229     16,604    17,910     a lower gold price 
-------------------  ---------  --------  ---------  --------  --------------------------------- 
                                                                Higher attributable profit 
                                                                 for the Quarter due to 
                                                                 higher gross profit and 
 Net profit                                                      reduced administrative 
  attributable                                                   and share-based payment 
  to shareholders      1,118      3,120     5,268      6,152     expenses 
-------------------  ---------  --------  ---------  --------  --------------------------------- 
 Adjusted                                                       Increased adjusted EPS 
  basic earnings                                                 for the Quarter due to 
  per share                                                      higher attributable profit 
  ("EPS")(3)                                                     and the add-back of deferred 
  (cents)               22.1      40.8       65.4      87.3      taxation 
-------------------  ---------  --------  ---------  --------  --------------------------------- 
                                                                Cash position remains 
 Cash and                                                        robust despite increased 
  cash equivalents     12,390    11,830     12,390    11,830     capital expenditure 
-------------------  ---------  --------  ---------  --------  --------------------------------- 
 Cash from                                                      Cash from operating activity 
  operating                                                      benefits from reduced 
  activities           7,107     10,118     16,071    16,598     working capital 
-------------------  ---------  --------  ---------  --------  --------------------------------- 

Commenting on the results, Steve Curtis, Chief Executive Officer, said:

"The third quarter of 2017 was a strong quarter in terms of operating and financial performance. However, this was clouded by a fatality at the Blanket mine in July. I join with my colleagues and fellow Directors in again expressing our sincere condolences to the families and colleagues of the deceased and assure all our stakeholders at Blanket of our continued and unwavering commitment to safe and sustainable operations.

"Gold production in the Quarter achieved a new record: 14,396 ounces of gold were produced in the third quarter - seven per cent more than the third quarter of 2016 and 15 per cent more than in the preceding quarter. The increased production was primarily due to higher grades, which was due to the improved mine flexibility as a result of the measures taken in previous quarters.

"The higher gold production resulted in higher revenues and a substantial increase in profit. Net profit attributable to shareholders in the Quarter was $3.1 million - almost three times higher than the third quarter of 2016 and over four times higher than the preceding quarter.

"The all-in sustaining cost ("AISC") per ounce fell sharply in the Quarter to $773 per ounce compared to $855 per ounce in the previous quarter and $1,004 per ounce in the third quarter of 2016. The reduction was due to higher gold production, which means that fixed costs such as general and administrative costs are spread across more ounces. The lower AISC compared to the third quarter of 2016 was also due to lower general and administrative expenses and the recognition of the export incentive credit which is paid by the Zimbabwean government at a value of three and a half per cent of Blanket's revenues.

"Cash from operating activities in the Quarter was $10.1 million which allowed further investment at Blanket, of approximately $8 million and net cash at the end of the Quarter was $11.8 million compared to $10.8 million at the end of June 2017.

"I am pleased to report that Blanket paid a dividend of $2.5 million at the end of the Quarter which means that Blanket's indigenous shareholders participate in the profit generated by the mine. The payment of a dividend by Blanket also means that Caledonia receives its 49 per cent share of the dividends in addition to repayments on the facilitation loans that are due to Caledonia from Blanket's indigenous shareholders.

"On November 2, Caledonia published a resource update in which the Measured and Indicated resources at Blanket Mine increased by six per cent from 671,000 ounces at December 31, 2016 to 714,000 ounces as at August 31, 2017. In addition, the ounces included in Inferred resources increased by 47 per cent to 887,000 ounces. The increase in resources is a testament to our increased focus on exploration and resource development in recent years.

"In light of the increased resources, Caledonia announced on November 10, 2017 that the Central Shaft project will be extended by a further 240 metres to a depth of 1,330 metres, thereby providing access to the deeper resources that we have now identified. The extension to the Central Shaft will cost $10 million and is expected to extend Blanket's life of mine by a further four years to 2031 and should allow Blanket to maintain its target production rate of 80,000 ounces from 2021 until at least 2029 based on the existing resources."

 Caledonia Mining Corporation 
  Plc                                   Tel: +44 1534 679 802 
  Mark Learmonth                        Tel: +44 759 078 1139 
  Maurice Mason 
 WH Ireland                           Tel: +44 20 7220 1751 
  Adrian Hadden/Ed Allsopp 
 Blytheweigh                          Tel: +44 207 138 3204 
  Tim Blythe/Camilla Horsfall/Megan 

Note: This announcement includes inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.

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", "envisage", "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.

Securityholders, potential securityholders and other prospective investors should be aware that these statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. Such factors include, but are not limited to: risks relating to estimates of mineral reserves and mineral resources proving to be inaccurate, fluctuations in gold price, risks and hazards associated with the business of mineral exploration, development and mining, risks relating to the credit worthiness or financial condition of suppliers, refiners and other parties with whom the Company does business; inadequate insurance, or inability to obtain insurance, to cover these risks and hazards, employee relations; relationships with and claims by local communities and indigenous populations; political risk; availability and increasing costs associated with mining inputs and labour; the speculative nature of mineral exploration and development, including the risks of obtaining or maintaining necessary licenses and permits, diminishing quantities or grades of mineral reserves as mining occurs; global financial condition, the actual results of current exploration activities, changes to conclusions of economic evaluations, and changes in project parameters to deal with unanticipated economic or other factors, risks of increased capital and operating costs, environmental, safety or regulatory risks, expropriation, the Company's title to properties including ownership thereof, increased competition in the mining industry for properties, equipment, qualified personnel and their costs, risks relating to the uncertainty of timing of events including targeted production rate increase and currency fluctuations. Shareholders are cautioned not to place undue reliance on forward-looking information. By its nature, forward-looking information involves numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and various future events will not occur. Caledonia undertakes no obligation to update publicly or otherwise revise any forward-looking information whether as a result of new information, future events or other such factors which affect this information, except as required by law.

 Condensed Unaudited Consolidated Statement of Profit 
  or Loss and Other Comprehensive Income 
                                       3 months ended       9 months ended 
                                         September 30         September 30 
                                         2016      2017       2016       2017 
 Revenue                               17,637    18,230     46,741     50,163 
 Royalty                                (883)     (913)    (2,340)    (2,512) 
 Production costs                     (9,090)   (9,080)   (25,213)   (26,992) 
 Depreciation                           (884)   (1,008)    (2,584)    (2,749) 
                                     --------  --------  ---------  --------- 
 Gross profit                           6,780     7,229     16,604     17,910 
 Other income                              12       663         86      1,864 
 Administrative expenses              (1,997)   (1,607)    (5,233)    (4,541) 
 Foreign exchange gain/(loss)           (132)       (3)      (332)         16 
 Cash settled share based 
  payment                               (497)      (73)      (747)      (607) 
 Equity settled share based 
  payment                                   -         -          -      (835) 
 Sale of Blanket Mine treasury              -         -      3,203          - 
 Margin call on gold hedge                  -         -      (435)          - 
 Operating profit                       4,166     6,209     13,146     13,807 
 Net finance cost                        (53)       (7)      (142)       (24) 
                                     --------  --------  ---------  --------- 
 Profit before tax                      4,113     6,202     13,004     13,783 
 Tax expense                          (2,290)   (2,326)    (5,797)    (5,876) 
                                     --------  --------  ---------  --------- 
 Profit for the period                  1,823     3,876      7,207      7,907 
                                     --------  --------  ---------  --------- 
 Other comprehensive income/(loss) 
 Items that are or may be 
  reclassified to profit or 
 Foreign currency translation 
  differences for foreign 
  operations                               73     (110)         46         23 
 Total comprehensive income 
  for the period                        1,896     3,766      7,253      7,930 
                                     --------  --------  ---------  --------- 
 Profit attributable to: 
 Shareholders of the Company            1,118     3,120      5,268      6,152 
 Non-controlling interests                705       756      1,939      1,755 
                                     --------  --------  ---------  --------- 
 Profit for the period                  1,823     3,876      7,207      7,907 
                                     --------  --------  ---------  --------- 
 Total comprehensive income 
  attributable to: 
 Shareholders of the Company            1,191     3,010      5,314      6,175 
 Non-controlling interests                705       756      1,939      1,755 
                                     --------  --------  ---------  --------- 
 Total comprehensive income 
  for the period                        1,896     3,766      7,253      7,930 
                                     --------  --------  ---------  --------- 
 Earnings per share (i) 
 Basic                                   0.10      0.29       0.49       0.57 
 Diluted                                 0.10      0.29       0.48       0.57 
 Adjusted earnings per share 
  (i) (ii) 
 Basic                                   0.22      0.41       0.65       0.87 
-----------------------------------  --------  --------  ---------  --------- 

(i) Earnings per share ("EPS") and adjusted EPS for current and prior periods have been adjusted to reflect the effective 1-for-5 share consolidation which was effected on June 26, 2017

(ii) Adjusted EPS is a non-IFRS measure which aims to reflect Caledonia's ordinary trading performance.

 Condensed Consolidated Statement of Cash 
  Flows (unaudited) 
                                                   3 months ended           9 months ended 
                                                      September                September 
                                                         30                       30 
                                                   2016        2017           2016       2017 
 Cash flows from operating 
 Cash generated from operations                        8,057    11,652      17,892     19,526 
 Net interest paid                                      (52)     (116)       (142)      (121) 
 Tax paid                                              (898)   (1,418)     (1,679)    (2,807) 
                                             ---------------  --------  ----------  --------- 
 Cash from operating activities                        7,107    10,118      16,071     16,598 
 Cash flows from investing 
 Acquisition of property, 
  plant and equipment                                (4,440)   (8,056)    (12,670)   (15,575) 
 Proceeds from property, 
  plant and equipment                                     19         -          78          - 
                                             ---------------  --------  ----------  --------- 
 Net cash used in investing 
  activities                                         (4,421)   (8,056)    (12,592)   (15,575) 
                                             ---------------  --------  ----------  --------- 
 Cash flows from financing 
 Dividends paid                                        (925)     (964)     (2,122)    (2,416) 
 Term loan repayments                                      -     (375)           -    (1,125) 
 Share repurchase cost                                     -         -           -      (146) 
 Shares issued                                            48        84         153         84 
                                             ---------------  --------  ----------  --------- 
 Net cash used in financing 
  activities                                           (877)   (1,255)     (1,969)    (3,603) 
 Net increase/(decrease) 
  in cash and cash equivalents                         1,809       807       1,510    (2,580) 
 Effect of exchange rate 
  fluctuations on cash held                                -       145           -         75 
 Cash and cash equivalents 
  at beginning of the period                          10,581    10,878      10,880     14,335 
 Cash and cash equivalents 
  at end of the period                                12,390    11,830      12,390     11,830 
-------------------------------------------  ---------------  --------  ----------  --------- 
 Consolidated Statements of Financial Position (unaudited) 
                                                        As       December   September 
                                                        at             31          30 
                                                                     2016        2017 
 Total non-current 
  assets                                                           64,917      77,027 
 Inventories                                                        7,222       8,098 
 Prepayments                                                          810       2,001 
 Trade and other receivables                                        3,425       5,813 
 Cash and cash equivalents                                         14,335      11,830 
                                                            -------------  ---------- 
 Total assets                                                      90,709     104,769 
                                                            -------------  ---------- 
 Total non-current 
  liabilities                                                      21,560      23,251 
 Current portion of 
  term loan facility                                                1,410       1,666 
 Trade and other payables                                           8,077      13,135 
 Income taxes payable                                                 345       1,113 
 Total liabilities                                                 31,392      39,165 
                                                            -------------  ---------- 
 Total equity                                                      59,317      65,604 
                                                            -------------  ---------- 
 Total equity and liabilities                                      90,709     104,769 
----------------------------------------------------------  -------------  ---------- 

(1) Non-IFRS measures such as "On-mine cost per ounce", "AISC" and "average realised gold price" are used throughout this document. Refer to Section 10 of the associated management discussion and analysis for the Quarter ("MD&A") for a discussion of non-IFRS measures.

(2) Gross profit is after deducting royalties, production costs and depreciation but before administrative expenses, other income, interest and finance charges and taxation.

(3) Adjusted EPS is a non-IFRS measure which aims to reflect Caledonia's ordinary trading performance. Refer to Section 10 of the MD&A for a discussion of non-IFRS measures. Per share data for current and prior periods has been adjusted to reflect the effective 1-for-5 share consolidation which was effected on June 26, 2017.

This information is provided by RNS

The company news service from the London Stock Exchange



(END) Dow Jones Newswires

November 13, 2017 02:00 ET (07:00 GMT)

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