TIDMCMCL
RNS Number : 1304P
Caledonia Mining Corporation PLC
14 November 2016
The following amendment has been made to the Results for the
Third Quarter of 2016 announcement released on 14 November at 7am
BST under RNS No 0309P
Under "Conference Call" the Toronto and New York time has been
amended to 8am.
In paragraph two, adjusted earnings per share have been
increased by 59 per cent to 4.4 cents per share.
All other details remain unchanged.
The full corrected version is shown below.
Caledonia Mining Corporation Plc
Results for the Third Quarter of 2016
St Helier, 14 November, 2016. Caledonia Mining Corporation Plc
("Caledonia" or the "Company") announces its operating and
financial results for the third quarter of 2016 ("Q3" or the
"Quarter").
More gold has been produced than in the comparable period last
year, at a lower cost, and adjusted earnings per share have been
increased by 59 per cent to 4.4 cents per share.
3 months 9 months
to 30 September to 30 September
------------------- ------------------- ------------------- -------------------------------
2015 2016 2015 2016 Comment
------------------- --------- -------- --------- -------- -------------------------------
Increased gold production
mainly due to increased
tonnes mined and milled
Gold produced following the completion
(oz) 10,927 13,428 32,101 36,760 of infrastructure works
------------------- --------- -------- --------- -------- -------------------------------
Lower costs as the fixed
On-mine cost component is spread
cost (US$/oz)(1) 669 618 701 643 across higher production
------------------- --------- -------- --------- -------- -------------------------------
Lower AISC due to lower
on mine costs and lower
sustaining capital investment
which offset the higher
royalty cost due to the
All-in Sustaining higher gold price and
Cost (US$/oz) higher administrative
("AISC") 1,005 969 1,006 952 costs
------------------- --------- -------- --------- -------- -------------------------------
Average Higher realised price
realised per ounce reflects the
gold price higher price of gold in
($/oz) 1,106 1,312 1,158 1,247 the Quarter
------------------- --------- -------- --------- -------- -------------------------------
Higher gross profit due
to increased revenues,
due to higher sales and
Gross profit the higher gold price,
(US$'000) and reduced on-mine costs
(2]) 2,773 6,780 9,773 16,604 per ounce
------------------- --------- -------- --------- -------- -------------------------------
Lower attributable profit
in the Quarter than in
Q3 of 2015 due to foreign
exchange losses, share
based payment expense,
Net profit higher professional and
attributable legal fees and higher
to shareholders taxation and non-controlling
(US$'000) 1,317 1,118 2,839 5,268 interest charges
------------------- --------- -------- --------- -------- -------------------------------
Higher adjusted earnings
per share after excluding
foreign exchange losses
Adjusted and deferred tax. Adjusted
basic earnings eps for the 9 months excludes
per share the non-recurring profit
("EPS")(3) arising on the sale of
(UScents) 2.9 4.4 7.2 13.0 Zimbabwean treasury bills.
------------------- --------- -------- --------- -------- -------------------------------
Net cash
and cash
equivalents Decreased cash due to
(US$'000) 14,653 12,390 14,653 12,390 continued capital investment
------------------- --------- -------- --------- -------- -------------------------------
Increased cash generated
Cash from from operating activities
operating due to increased sales
activities volumes and higher gold
($'000) 1,392 7,107 4,579 16,071 price
------------------- --------- -------- --------- -------- -------------------------------
Steve Curtis, Caledonia's President and Chief Executive Officer
said:
"The results for the third quarter are another step in our
journey of consistent growth in production, profitability and cash
generation at Blanket mine. We continue to see the benefits of our
investment in the mine over the past two years. As we approach the
middle of the investment programme at Blanket, we are increasingly
confident that the growth in production and declining cost trends
will continue as we ramp up production to 80koz by 2021.
"Delivering increased ounces at a lower unit cost, into a
stronger gold price, has resulted in adjusted earnings per share
for the third quarter that are 59 per cent higher than quarter
three of 2015. The underlying operating and financial performance
of the Blanket mine remains very strong, and is on an upward
trajectory. The quarter presented a number of indirect cost
headwinds, which resulted in adjusted earnings being 25per cent
lower than the second quarter of 2016. These costs include the
costs associated with the evaluation of new investment
opportunities and the share-based expense relating to the long term
incentive plan ("LTIP"). The share based expense in the quarter
arising from the LTIP is a non-cash charge and is largely due to
the substantial increase in the Company's share price and will not
result in a cash payment until early 2019. Despite these headwinds,
Caledonia still expects to deliver full year earnings substantially
higher than 2015.
"The quarter saw yet another production record, following on
from the record set in the second quarter, as the benefits of
improved mine flexibility become increasingly apparent. The
installation of a third mill at Blanket in the quarter will further
improve plant capacity as we continue to mill increased tonnage as
part of the production expansion. This achievement is a testament
to the hard work of the management and employees at Blanket Mine as
well as the technical team at Caledonia over the last 18
months.
"Gold production in the quarter was 13,428 ounces, 23 per cent
higher year on year, and 7 per cent higher than the previous
quarter due to the increased tonnes mined and milled and despite
marginally lower planned grade when compared to the second quarter.
We expect that the lower grade is a temporary reduction and that
mined grade will continue to trend upwards towards four grammes per
tonne as production from higher grade, deeper ore bodies
increases.
"Production guidance for 2017 is 60koz, a 20 per cent increase
on 2016 production as the ramp-up of production at Blanket towards
80koz by 2021 continues. I am particularly proud of our ability to
achieve this production and profitability growth whilst maintaining
a dividend of 1.375 cents per quarter. Caledonia's dividend remains
sustainable with dividend cover for the quarter of 3.3 times
earnings and almost eight times operating cash flow.
"All-In Sustaining cost for the quarter was $969 per ounce - 3.6
per cent lower than the comparable quarter of 2015. Costs at
Blanket and Caledonia remain well-controlled and I expect to see
further reductions in the average cost per ounce as production
increases in line with the production plan. Target on mine costs
and All-In sustaining costs for 2017 are in the ranges of $600-$630
per ounce and $810-850 per ounce, respectively.
"Our cash position continues to grow with net cash of $12.39
million at the end of 30 September, 2016 compared to $10.6 million
at 30 June, 2016.
"We are also pleased that our increased focus on exploration and
resource development is now beginning to show results. The addition
of over 200koz of gold at a grade of five grammes per tonne during
the quarter is testament to the success of these efforts. I am
confident that the life of mine will be further supplemented by
further resource additions and upgrades.
"The transformational Central Shaft project continues to
progress well with completion on track for mid-2018 with the shaft
depth currently standing at 330m. The completed shaft down to a
level of 1,080m will establish Blanket as a large, low cost
operation with excellent prospects to extend the existing mine
life.
"We remain positive about the future prospects for Caledonia and
look forward to updating the market with our progress in the
future."
Strategy and Outlook
Caledonia's strategic focus continues to be the implementation
of the Investment Plan at Blanket, which was announced in November
2014 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
On 5 July, 2016 Caledonia announced a decision to increase its
quarterly dividend to 1.375 United States cents per share, or 5.5
United States cents per annum an increase of 22 per cent. The
increased dividend represents Caledonia's revised dividend policy
following the success of the revised mine plan. It is currently
envisaged that the dividend of 5.5 United States cents per annum
will be maintained.
Exploration
There has been an increased focus on exploration and resource
development at Blanket Mine for several quarters which is now
beginning to bear fruit. As reported in the previous quarter, new
drilling machines have been acquired and commissioned as a result
of which the meters of diamond drilling has approximately doubled
to 6,100 per quarter. On 27 July, 2016 Caledonia announced that
343,000 tonnes of ore at a grade of 5.19g/t had been upgraded from
inferred resource to indicated resource and 1.2 million tonnes of
new inferred resource at a grade of 5.00g/t had also been added to
inventory.
Conference Call
A presentation of the results for the Quarter and nine months to
30 September 2016 and the outlook for Caledonia is available on
Caledonia's website (www.caledoniamining.com). Management will host
a "Question and Answer"
call at 1pm (UK Time) on 16 November, 2016. Details for the call are as follows:
Time: 1300 London / 1500 Johannesburg/ 1400 Zurich, Frankfurt /
0800 Toronto, New York
Conference Details
Conference Name: Caledonia Mining Q3 Results
Conference Password: Caledonia
Dial in numbers:
Canada Toll Free 1 800 608 0547
Germany Toll Free 0800 673 7932
Standard International Access +44 (0) 20 3003 2666
Switzerland Toll Free 0800 800 038
UK Toll Free 0808 109 0700
USA Toll Free 1 866 966 5335
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.
For further information please contact:
Caledonia Mining Corporation
Plc Tel: +44 1534 679 802 or
Mark Learmonth +27 11 447 2499
Maurice Mason Tel: +44 759 078 1139
WH Ireland Tel: +44 20 7220 1751
Adrian Hadden/Nick Prowting
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.
Potential shareholders and 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 Consolidated Statement of Profit or Loss
and Other Comprehensive Income (Unaudited)
($'000's)
3 months ended 9 months
September 30 ended September
30
2015 2016 2015 2016
Revenue 12,096 17,637 37,224 46,741
Royalty (606) (883) (1,864) (2,340)
Production costs (7,803) (9,090) (23,001) (25,213)
Depreciation (914) (884) (2,586) (2,584)
-------- -------- --------- ---------
Gross profit 2,773 6,780 9,773 16,604
Other income 33 12 56 86
Administrative expenses (1,664) (1,997) (5,183) (5,233)
Foreign exchange gain/(loss) 1,457 (132) 2,076 (332)
Share based payment expense - (497) - (747)
Sale of Blanket Mine treasury
bills - - - 3,203
Margin call on gold hedge - - - (435)
-------- -------- --------- ---------
Operating profit 2,599 4,166 6,722 13,146
Net finance cost (358) (53) (428) (142)
-------- -------- --------- ---------
Profit before tax 2,241 4,113 6,294 13,004
Tax expense (703) (2,290) (2,657) (5,797)
-------- -------- --------- ---------
Profit for the period 1,538 1,823 3,637 7,207
-------- -------- --------- ---------
Other comprehensive income/(loss)
Items that are or may be
reclassified to profit
or loss
Foreign currency translation
differences for foreign
operations (1,540) 73 (2,088) 46
-------- -------- --------- ---------
Total comprehensive income
for the period (2) 1,896 1,549 7,253
-------- -------- --------- ---------
Profit attributable to:
Shareholders of the Company 1,317 1,118 2,839 5,268
Non-controlling interests 221 705 798 1,939
-------- -------- --------- ---------
Profit for the period 1,538 1,823 3,637 7,207
-------- -------- --------- ---------
Total comprehensive income
attributable to:
Shareholders of the Company (223) 1,191 751 5,314
Non-controlling interests 221 705 798 1,939
-------- -------- --------- ---------
Total comprehensive income
for the period (2) 1,896 1,549 7,253
-------- -------- --------- ---------
Earnings per share (cents)
Basic 2.6 2.0 5.3 9.7
Diluted 2.6 1.9 5.2 9.6
Adjusted earnings per share
(cents) (i)
Basic 2.9 4.4 7.2 13.0
------------------------------------ -------- -------- --------- ---------
Condensed Consolidated Statement of Cash Flows
(unaudited)
($'000's)
For the 3 For the 9
months ended months ended
September September
30 30
2015 2016 2015 2016
Cash flows from operating
activities
Cash generated by operating
activities 1,585 8,057 5,459 17,892
Net interest paid (25) (52) (74) (142)
Tax paid (168) (898) (806) (1,679)
-------- ----------- --------- ---------
Net cash from operating
activities 1,392 7,107 4,579 16,071
-------- ----------- --------- ---------
Cash flows from investing
activities
Acquisition of Property,
plant and equipment (5,313) (4,440) (11,143) (12,670)
Proceeds from property,
plant and equipment - 19 - - 78
-------- ----------- --------- ---------
Net cash used in investing
activities (5,313) (4,421) (11,143) (12,592)
-------- ----------- --------- ---------
Cash flows from financing
activities
Dividends paid (596) (925) (1,865) (2,122)
Share issues - 48 - - 153
-------- ----------- --------- ---------
Net cash used in financing
activities (596) (877) (1,865) (1,969)
-------- ----------- --------- ---------
Net (decrease)/increase
in cash and cash equivalents (4,517) 1,809 (8,429) 1,510
Cash and cash equivalents
at beginning of the period
(net of overdraft) 19,170 10,581 23,082 10,880
Cash and cash equivalents
at end of the period (net
of overdraft) 14,653 12,390 14,653 12,390
------------------------------- -------- ----------- --------- ---------
Consolidated Statements of Financial Position (unaudited)
($'000's)
As December September
at 31 30
2015 2016
Total non-current
assets 49,276 59,342
Inventories 6,091 6,701
Prepayments 667 867
Income tax receivable 397 157
Trade and other
receivables 3,839 4,149
Cash and cash equivalents 12,568 13,939
----------- ------------
Total assets 72,838 85,207
----------- ------------
Total non-current
liabilities 14,080 18,435
Trade and other
payables 6,656 9,432
Income taxes payable 53 146
Bank overdraft 1,688 1,549
----------- ------------
Total liabilities 22,477 29,562
----------- ------------
Total equity 50,361 55,645
----------- ------------
Total equity and
liabilities 72,838 85,207
----------------------------------------------- ----------- ------------
(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 this MD&A for a discussion of
non-IFRS measures.
(2) Gross profit is after deducting royalties, production costs
and depreciation but before administrative expenses.
(3) Adjusted EPS is a non-IFRS measure which aims to reflect
Caledonia's ordinary trading performance. Refer to Section 10 of
this MD&A for a discussion of non-IFRS measures.
This information is provided by RNS
The company news service from the London Stock Exchange
END
QRTEASFLFAXKFFF
(END) Dow Jones Newswires
November 14, 2016 10:31 ET (15:31 GMT)
Caledonia Mining (LSE:CMCL)
Historical Stock Chart
From Apr 2024 to May 2024
Caledonia Mining (LSE:CMCL)
Historical Stock Chart
From May 2023 to May 2024