Caledonia Mining Corporation Plc ("Caledonia" or the "Company")
(NYSE AMERICAN: CMCL; AIM: CMCL; VFEX: CMCL) 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 ounce1 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/t2.
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 ounces3 – 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 LondonTopic: 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 PlcMark
LearmonthCamilla Horsfall |
Tel: +44 1534 679 802Tel: +44 7817 841793 |
WH IrelandAdrian
Hadden/ Jessica Cave |
Tel: +44 20 7220 1751 |
BlytheRay Financial
PRTim Blythe/Megan Ray |
Tel: +44 207 138 3204 |
3PPBPatrick
ChidleyPaul Durham |
Tel: +1 917 991 7701Tel: +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.
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; 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)); 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.
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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