We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register to chat with like-minded investors on our interactive forums.
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Caledonia Mining Corporation Plc | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|
| -25.00 | -2.94% | 825.00 | 810.00 | 840.00 | 845.00 | 825.00 | 845.00 | 274 | 15:18:11 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Gold Ores | 135.02M | 17.9M | 0.9329 | 10.88 | 194.78M |
From Apr 2019 to Apr 2024
TIDMCMCL
RNS Number : 2625X
Caledonia Mining Corporation PLC
09 August 2018
Caledonia Mining Corporation Plc
Results for the Quarter ended 30 June 2018
St Helier, 9 August 2018 - Caledonia Mining Corporation Plc ("Caledonia" or the "Company") announces its operating and financial results for the second quarter of 2018 ("Q2" or the "Quarter").
Gold production in the Quarter was 12,657 ounces, marginally higher than the first quarter of 2018 and in-line with expectations. Adjusted earnings per share ("EPS") of 35.2 cents were 86% higher than the corresponding amount in 2017, largely due to an increased export credit incentive and higher deferred tax adjustments. Cash generated by operating activities for the Quarter was lower than in previous periods due to substantial working capital movements.
Hot Features
Premium
3 Months to June 6 Months to June Comment
30 30
----------------------- ---------------------
2017 2018 % Chg 2017 2018 % Chg
------------------- ------- ------- ----- ------ ------ ----- -----------------------------------
Production was adversely affected
by lower than planned tonnes
and grade; higher production
Gold produced is anticipated in the second
(oz) 12,521 12,657 1.1% 25,315 25,582 1.1% half of 2018.
------------------- ------- ------- ----- ------ ------ ----- -----------------------------------
Higher on-mine cost per ounce
due to increased labour rates
On-mine and explosive price and higher
cost per costs incurred on equipment
ounce ($/oz) 696 717 3.0% 677 702 3.7% used in the decline developments.
------------------- ------- ------- ----- ------ ------ ----- -----------------------------------
AISC is broadly stable: higher
All-in sustaining on-mine costs are offset by
cost ($/oz) the increased Export Credit
("AISC") 855 856 0.1% 856 843 -1.5% Incentive ("ECI")
------------------- ------- ------- ----- ------ ------ ----- -----------------------------------
Average
realised
gold price Increase reflects changes
($/oz) 1,235 1,278 3.5% 1,224 1,296 5.9% in the market gold price
------------------- ------- ------- ----- ------ ------ ----- -----------------------------------
Marginally higher gross profit
reflects the higher gold sales
and higher realised gold price,
offset by the increased on-mine
Gross profit 5,035 5,144 2.2% 10,861 11,367 4.7% costs.
------------------- ------- ------- ----- ------ ------ ----- -----------------------------------
Net profit
attributable Increased net profit attributable
to shareholders to shareholders due to the
($) 694 2,604 275% 3,032 5,758 90% increased ECI.
------------------- ------- ------- ----- ------ ------ ----- -----------------------------------
Adjusted Increased adjusted EPS reflects
earnings the increased attributable
per share earnings and other adjusting
("EPS") factors, the main one being
(cents) 18.9 35.2 86.2% 45.7 75.2 64.6% deferred taxation.
------------------- ------- ------- ----- ------ ------ ----- -----------------------------------
Reduction in net cash due
Net cash to lower cash generated from
and cash operations, increased working
equivalents capital and tax payments and
($) 10,878 5,308 -51% 10,878 5,308 -51% high capital expenditure.
------------------- ------- ------- ----- ------ ------ ----- -----------------------------------
Net cash Reduced cash from operating
from operating activities due to increased
activities working capital and tax payments
($) 4,701 -1,216 -126% 6,480 5,829 -10% and high capital expenditure.
------------------- ------- ------- ----- ------ ------ ----- -----------------------------------
Commenting on the results, Steve Curtis, Chief Executive Officer, said:
"The second quarter of 2018 was a difficult quarter for the business as production was adversely affected by lower than expected grade and tonnes mined.
"Production of 12,657 ounces was marginally higher than the second quarter of 2017 and in line with our expectations for our 2018 guidance range of 55,000 - 59,000 ounces.
"Grade for the quarter was 3.19g/t, this is below target due to difficulties in accessing broken ground at AR South and higher than expected dilution at the Blanket ore body due to the introduction of long-hole stopping on the grounds of safety. Corrective measures to improve grade have been taken and it is expected that the grade and production tonnages will increase over future quarters, particularly in the fourth quarter of 2018.
"We experienced significant negative working capital movements during the quarter which had an adverse effect on operating cash flow with a net operating cash burn of $1.2 million during the quarter. This, combined with capital investment of $5.6 million during the quarter, had a negative impact on the balance sheet with a net cash balance of $5.3 million at the end of the quarter.Underlying cash flows remained robust: pre-tax operating cashflows in the quarter before working capital movements were $6.3 million, compared to $7 million in the first quarter of 2018 and $4.9 million in the second quarter of 2017.
"Capital investment for the quarter was in line with our capex plan for 2018 at $5.6 million, most of which was incurred at Central Shaft, which has now reached a depth of 1,106 meters. We expect capex to decline substantially after 2019 after we commission the Central Shaft as planned in 2020. The Central Shaft project is the key enabler of longer term value for our shareholders as we progress towards our production and cost targets by 2021."
"Our cost performance for the quarter was satisfactory, with on-mine and all-in sustaining costs being well-contained; on-mine costs of $717 per ounce for the quarter were 3 per cent higher than the corresponding quarter of 2017 and the all-in sustaining costs of $856 per ounce was flat year on year. In the light of lower grade and tonnage for the quarter we are pleased to see this level of cost control in the business and remain confident in our longer-term cost guidance target of $700 - $800 per ounce as the business grows towards 80,000 ounces per year by 2021.
"Attributable profit for the quarter was substantially higher year on year at $2.6 million boosted mainly by the increase in the ECI when compared to the same period in 2017.
"Unfortunately, 2018 has been a time of disappointing safety performance for our business with two fatal accidents at Blanket, one in the first quarter and a second accident on the 12(th) of July 2018 after the second quarter's close. My fellow directors and I express our sincere condolences to the family and friends of the deceased. The Company has embarked upon renewed efforts in the business to improve our safety performance.
""We remain confident in the underlying health of the business and the long-term potential of the Blanket mine ore bodies. We expect that production in the second half of 2018 will increase and the negative movements in working capital in the second quarter will normalize in the third and fourth quarters of 2018.
Following the implementation of indigenisation in September 2012, Caledonia owns 49 per cent of the Blanket Mine in Zimbabwe. Caledonia continues to consolidate Blanket and the operational and the financial information set out below is on a 100 per cent basis unless otherwise indicated.
Strategy and Outlook
Caledonia remains on track to achieve the production target of 80,000 ounces per year by 2021 at its Zimbabwean subsidiary, Blanket Mine. The Company's strategic focus continues to be the implementation of the Investment Plan at Blanket, which was announced in November 2014 and revised in November 2017 and is expected to extend the life of mine by providing access to deeper levels for production and further exploration. Implementation of the Investment Plan remains on target in terms of timing and cost. Caledonia's board and management believe the successful implementation of the Investment Plan is in the best interests of all stakeholders because it is expected to result in increased production, reduced operating costs and greater flexibility to undertake further exploration and development, thereby safeguarding and enhancing Blanket's long-term future. Caledonia's cash position is expected to improve as a result of the implementation of the Investment Plan; Caledonia will continue to assess new opportunities to invest surplus cash.
Dividend Policy
Caledonia pays a quarterly dividend of 6.875 US cents per share, the quarterly dividend is paid at the end of January, April, July and October respectively. It is envisaged that the current dividend policy will be maintained.
Shareholder Conference Call
Management will host a conference call at 1500 BST on 13 August 2018.
Details for the call are as follows:
Date: 13 August 2018
Time: 1500 London, 1600 Johannesburg, 1600 Zurich and Frankfurt, 1000 Toronto and New York
Password: Caledonia Mining
UK Toll free 0808 109 0700
USA Toll free 1 866 966 5335
---------------------
South Africa Toll free 0 800 980 512
---------------------
Canada Toll free 1 800 608 0547
---------------------
Other (standard International access) +44 (0) 20 3003 2666
---------------------
For further information please contact:
Caledonia Mining Corporation Plc Mark Learmonth Tel: +44 1534 679 802 Maurice Mason Tel: +44 759 078 1139 WH Ireland Tel: +44 20 7220 1751 Adrian Hadden/ Ed Allsopp Blytheweigh Tel: +44 207 138 3204 Tim Blythe/Camilla Horsfall/Megan Ray
Note: This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation.
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.
Security holders, potential security holders 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. Security holders, potential security holders and other prospective investors 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
($'000's) 3 months ended 6 months ended
June 30 June 30
2017 2018 2017 2018
Revenue 15,484 16,198 31,933 34,257
Royalty (776) (811) (1,599) (1,715)
Production costs (8,814) (9,297) (17,912) (19,307)
Depreciation (859) (946) (1,741) (1,868)
-------- -------- --------- ---------
Gross profit 5,035 5,144 10,861 11,367
Other income 557 1,720 1,201 3,101
Administrative expenses (1,493) (1,660) (2,934) (3,202)
Foreign exchange gain 83 89 19 160
Cash-settled share-based payment (959) (223) (534) (337)
Equity-settled share-based payment - - (835) (14)
Operating profit 3,223 5,070 7,598 11,075
Net finance cost (10) (29) (17) (45)
-------- -------- --------- ---------
Profit before tax 3,213 5,041 7,581 11,030
Tax expense (2,090) (1,787) (3,550) (3,897)
-------- -------- --------- ---------
Profit for the period 1,123 3,254 4,031 7,133
-------- -------- --------- ---------
Other comprehensive income/(loss)
Items that are or may be reclassified
to profit or loss
Foreign currency translation
differences for foreign operations 60 (648) 133 (440)
Total comprehensive income for
the period 1,183 2,606 4,164 6,693
-------- -------- ---------
Profit attributable to:
Shareholders of the Company 694 2,604 3,032 5,758
Non-controlling interests 429 650 999 1,375
-------- -------- --------- ---------
Profit for the period 1,123 3,254 4,031 7,133
-------- -------- --------- ---------
Total comprehensive income attributable
to:
Shareholders of the Company 754 1,956 3,165 5,318
Non-controlling interests 429 650 999 1,375
-------- -------- --------- ---------
Total comprehensive income for
the period 1,183 2,606 4,164 6,693
-------- -------- --------- ---------
Earnings per share (cents) (i)
Basic 6.1 24.1 27.6 53.4
Diluted 6.1 24.1 27.5 53.3
Adjusted earnings per share (cents)
(i) (ii)
Basic 18.9 35.2 45.7 75.2
------------------------------------------ -------- -------- --------- ---------
Condensed consolidated statements of financial
position
(in thousands of United States dollars, unless indicated
otherwise)
Unaudited
As at June 30, December 31,
2018 2017
Assets
Property, plant and equipment 90,985 82,078
Deferred tax asset 76 65
Total non-current assets 91,061 82,143
----------
Inventories 10,065 9,175
Prepayments 1,172 709
Trade and other receivables 7,477 4,962
Cash and cash equivalents 8,057 13,067
Total current assets 26,771 27,913
Total assets 117,832 110,056
========== ===============
Equity and liabilities
Share capital 55,102 55,102
Reserves 143,026 143,452
Retained loss (130,985) (135,287)
---------- ---------------
Equity attributable to shareholders 67,143 63,267
Non-controlling interests 7,014 5,944
---------- ---------------
Total equity 74,156 69,211
---------- ---------------
Liabilities
Provisions 3,742 3,797
Deferred tax liability 22,078 19,620
Cash-settled share-based payments 2,203 1,826
Total non-current liabilities 28,023 25,243
----------
Short-term portion of term loan facility 746 1,486
Trade and other payables 12,061 12,660
Income tax payable 96 1,145
Bank overdraft 2,749 311
Total current liabilities 15,652 15,602
Total liabilities 43,675 40,845
Total equity and liabilities 117,832 110,056
---------------------------------------------------------- ---------------
Condensed Consolidated Statement of Cash Flows (unaudited)
($'000's)
3 months ended June 6 months ended June
30 30
2017 2018 2017 2018
Cash flows from operating activities
Cash generated from operations 5,459 749 7,874 8,433
Net interest paid (4) (44) (5) (82)
Tax paid (754) (1,921) (1,389) (2,522)
---------- ---------- ---------- ----------
Net cash from operating activities 4,701 (1,216) 6,480 5,829
Cash flows from investing activities
Acquisition of Property, plant
and equipment (4,223) (5,618) (7,519) (10,776)
Net cash used in investing activities (4,223) (5,618) (7,519) (10,776)
---------- ---------- ----------
Cash flows from financing activities
Dividends paid (727) (862) (1,452) (1,761)
Repayment of term loan facility (375) (375) (750) (750)
Share repurchase (146) - (146) -
Share issued - - - -
---------- ---------- ---------- ----------
Net cash used in financing activities (1,248) (1,237) (2,348) (2,511)
Net decrease in cash and cash
equivalents (770) (8,071) (3,387) (7,458)
Effect of exchange rate fluctuations
on cash held (74) (1) (70) 10
Net cash and cash equivalents
at beginning of the period 11,722 13,380 14,335 12,756
Net cash and cash equivalents
at end of the period 10,878 5,308 10,878 5,308
--------------------------------------- ---------- ---------- ---------- ----------
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
IR LLFLDTDITIIT
(END) Dow Jones Newswires
August 09, 2018 02:00 ET (06:00 GMT)
1 Year Caledonia Mining Chart |
1 Month Caledonia Mining Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
