Caledonia Mining Share Discussion Threads

[buffetcharliemtesque] 13/7/2022 10:24

Solid production update




Highlights

· Quarterly gold production of 20,091 ounces, a record for any quarter

· 20 per cent increase in quarterly production on the 16,710 ounces produced in Q2 2021

· Gold produced for the first half of 2022 was 38,606 ounces, approximately 29 per cent more than the 29,907 ounces produced in the first half of 2021

· Reiterated gold production for 2022 is expected to be between 73,000 - 80,000 ounces[1]


"Production in the first half of 2022 was excellent and exceeded our expectations. Production excludes an estimate of approximately 1,500 ounces of recoverable gold included in an ore stockpile which will be processed after the commissioning of additional milling capacity in the next few weeks.

"We have now achieved our quarterly target of 20,000 ounces and are on track to hit our annual production target of between 73,000 - 80,000 ounces of gold."

[mikkydhu] 23/6/2022 18:48

Just a few thoughts as the end of the quarter approaches:

1. Any day now we can expect the company to announce that the solar panel project is up and running. We may also hear of plans to extend it.

2. Among other benefits, the project will provide savings of US$35/ounce.

3. In the first week of July we can expect to hear production figures for Q2.

4. Production for April was 6,797 ounces, giving an annual run rate of just over 81,500 ounces, above the top end of the guidance range for this year.

5. In the Q1 results interview of 16th May, Mark Learmonth said tonnes were up, grade up, recovery up and costs were well under control. AISC was down $76/ounce, on mine costs down $140/ounce.

It would be an added bonus if the gold price perked up a little.

[mikkydhu] 10/6/2022 13:32

There is a good video of what looks like the now complete array of solar panels on the CMCL website under Media.

[mikkydhu] 26/5/2022 22:37

One important difference between Maligreen on the one hand and Glen Hume and Connemara North on the other hand is that for the latter two Caledonia only had an option to buy, which it then decided not to exercise as the properties didn't measure up to Caledonia's requirements, whereas Maligreen was acquired outright, 100% owned, from the outset. It was plainly considered a good enough prospect. As announced on 13th September 2021, Maligreen has an inferred resource of 940,000 ounces of gold at 1.88 gr/t. This acquisition includes 60,000 metres of core from drilling by previous owners.

The first thing Caledonia want to do is look again at this core with a view to increasing the confidence level in the resource, raising it from inferred to indicated. Having done that, they expect to move on to a feasibility study and then to building a mine. But as Mark Learmonth pointed out in the Q1 2022 results call presentation video of May 16th, Maligreen could be overtaken by another asset which could be more attractive and "push Maligreen down the pecking order." He said, "We do continue to look at other assets in Zimbabwe."

It is also worth remembering that there is also much more exploration still to be done at Blanket. There are expected to be shallower gold deposits between the surface and the underground levels that the company has been mining in recent years. They may want to devote resources to that. Recently they have been concentrating on making full use of the new shaft.

[melody9999] 24/5/2022 13:15

Have CMCL announced any further news re Maligreen (RNS 240921). I see they have canned Connemara but is this different?

EDIT I see they are still evaluating Maligreen. Clearly a very disciplined approach which gives comfort

[buffetcharliemtesque] 12/5/2022 08:28

Impressive update on Q1 and April production here



Management sticking with forecast of 77 - 80,000 oz for the year. However they emphasize :-

"6,797 ounces of gold were produced in April 2022 which is an annualised production rate of approximately 81,500 ounces"

I don't think they would say this if they didn't think it was achievable. There is also this :-

"An ore stockpile of approximately 14,000 tonnes, containing approximately 1,500 ounces of recoverable gold, was accumulated during the Quarter. This is not included in the gold production for the Quarter"

They are clearly producing more ore than the current mill can process. An additional mill will be commissioned later this year.

AISC for Q1 $968

"Financial Highlights

· Gross revenues of $35.1 million (Q1 2021: $25.7 million). Higher revenues reflect a 40 per cent increase in production and a six per cent increase in the realised gold price. Revenues include the sale proceeds of 442 ounces (net) of gold in work-in-progress.

· EBITDA of $14.6 million (Q1 2021: $9.7 million).

· On-mine cost[1] of $698 per ounce (Q1 2021: $836 per ounce). Lower cost per ounce was primarily due to higher production, which means that fixed costs are spread across more ounces, improved grade and reduced use of diesel generators.

· All-in sustaining cost1 of $968 per ounce (Q1 2021: $1,044 per ounce).

· Adjusted earnings per share1 of 62.5 cents (Q1 2021: 51.6 cents).

· Net cash from operating activities of $10.2 million (Q1 2021: $2.0 million).

· Net cash and cash equivalents of $14.4 million (Q1 2021: $13.0 million).

· Dividend paid in the Quarter of 14 cents per share, a 27 per cent increase from 11 cents per share paid in Q1 2021. The quarterly dividend has been maintained since October 2021".

We appear to have a very strong management team here.

[ntv] 13/4/2022 08:45

Price is $16.35 in the states. That is about £12.50
But the share price in the states is a lot more volatile than it is in the UK. Spread is a lot tighter as well

[leopoldalcox] 12/4/2022 20:47

Management have been delivering on their plans pretty consistently - all we can really ask for in a production company

[buffetcharliemtesque] 12/4/2022 10:08

Nice quarterly update from CMCL. I suspect management are being cautious in maintaining their 73 - 80,000 ounce target.





Highlights


Quarterly gold production of 18,515 ounces, a record for any first quarter

40 per cent increase in quarterly production on the 13,197 ounces produced in Q1 2021

Reiterated gold production for 2022 is expected to be between 73,000 to 80,000 ounces[

[pj84] 26/3/2022 16:54

Market seems to be finally taking notice of the progress of CMCL and the price of gold let's hope the trend continues.

[buffetcharliemtesque] 17/3/2022 09:41

Great set of results in for 2021-



OK guys, you can go back to sleep now knowing that CMCL is doing good work while you dream.

[ugandalad] 24/2/2022 09:24

Time will tell but seems a reasonable strategy to me without an ability to guarantee any future price movements in gold.

[pj84] 24/2/2022 08:40

Maybe not as bad as it seems, as they have hedged approximately 25% of estimated production for sensible business reasons, leaving approximately 75% unhedged.

No question it would have been better to enter in the hedge a few days later perhaps.

[buffetcharliemtesque] 24/2/2022 07:19

And the 2022 bad timing of the year award goes toooo.......

[ntv] 16/2/2022 21:03

Breakout in the states

[buffetcharliemtesque] 15/2/2022 10:26

Good heavens! Is that an uptick on the share price?

Permission to insert rockets?

[fredfishcake] 18/1/2022 16:00

Oops, you're right, thanks for the correction.

[3800] 18/1/2022 15:31

Only six months ago we were up at 1800.I think you mean 18 months freddyfish

[fredfishcake] 18/1/2022 14:46

Only six months ago we were up at 1800....we seem to have halved for no apparent reason (though in fairness we went up for no obvious reason either). I think we just have to be patient.

[tigerbythetail] 18/1/2022 13:24

Obviously, all gold mining shares are deeply out of fashion right now.
But CMCL is a well-managed low-cost outfit which pays a good dividend, has excellent growth potential, and which is priced attractively.
Sooner or later gold miners will come back into fashion and this will fly. Until then, it pays a decent quarterly dividend.

[stemis] 18/1/2022 12:36

2021 guidance was 65,000 - 67,000 oz and outturn exceeded at 67,476 oz. Production in H2 was 37,499 oz (annualised 74,998 oz) so 2022 guidance of 73,000 - 80,000 looks reasonable.

[tigerbythetail] 18/1/2022 08:17

RNS out.
Usual excellent performance from CMCL.
Upwardly revised guidance exceeded, benefits of new central shaft plain to see, guidance for next year increased again, growth strategy in place.
What's not to like?

[fredfishcake] 04/1/2022 16:22

Another div increase to 14c, so at current exchange rates that's a 4.4% div yield going forward at a P/E of 3.8 as per Stockopedia. OK, it's based in ZIM and it's a miner, so it's not a no-brainer......but it's certainly cheap!

[tigerbythetail] 17/12/2021 10:26

Papillon - CMCL is a great company. It's a well-managed, dividend-paying growth stock. Algy Hall got his pick right but his timing wrong. All gold miners have been hammered over the past month.

[tigerbythetail] 17/12/2021 10:24

Very happy to have added a few more below 900p. Bargain.