Caledonia Mining Corporation Plc: Results for the quarter and nine months ended September 30, 2024
Caledonia Mining reported Q3 2024 results with revenues of $46.9 million and gross profit of $19.3 million, up from $14.1 million in Q3 2023. Gold production was 18,992 ounces, lower than Q3 2023's 21,772 ounces. The company's all-in sustaining cost increased to $1,501 per ounce from $1,268 in Q3 2023. Net cash from operations decreased to $4.6 million from $14.5 million. A dividend of 14 cents per share was declared. The company signed a conditional agreement to sell its solar plant for $22.35 million while maintaining power supply. Production guidance for 2024 remains at 74,000-78,000 ounces at Blanket mine.
Caledonia Mining ha riportato i risultati del terzo trimestre 2024, con ricavi di 46,9 milioni di dollari e un utile lordo di 19,3 milioni di dollari, rispetto ai 14,1 milioni di dollari del terzo trimestre 2023. La produzione di oro è stata di 18.992 once, inferiore alle 21.772 once del terzo trimestre 2023. Il costo sostenibile totale dell'azienda è aumentato a 1.501 dollari per oncia, rispetto ai 1.268 dollari del terzo trimestre 2023. Il flusso di cassa netto dalle operazioni è diminuito a 4,6 milioni di dollari, rispetto ai 14,5 milioni di dollari. È stato dichiarato un dividendo di 14 centesimi per azione. L'azienda ha firmato un accordo condizionale per vendere il suo impianto solare per 22,35 milioni di dollari, mantenendo la fornitura di energia. La guida sulla produzione per il 2024 rimane tra 74.000 e 78.000 once nella miniera di Blanket.
Caledonia Mining reportó los resultados del tercer trimestre de 2024, con ingresos de 46,9 millones de dólares y una ganancia bruta de 19,3 millones de dólares, en comparación con los 14,1 millones de dólares del tercer trimestre de 2023. La producción de oro fue de 18.992 onzas, menor que las 21.772 onzas del tercer trimestre de 2023. El costo total sostenible de la empresa aumentó a 1.501 dólares por onza desde los 1.268 dólares en el tercer trimestre de 2023. El flujo de efectivo neto de las operaciones se redujo a 4,6 millones de dólares desde 14,5 millones de dólares. Se declaró un dividendo de 14 centavos por acción. La empresa firmó un acuerdo condicionado para vender su planta solar por 22,35 millones de dólares, manteniendo el suministro eléctrico. La guía de producción para 2024 se mantiene entre 74.000 y 78.000 onzas en la mina Blanket.
칼레돈니아 마이닝은 2024년 3분기 실적을 발표했으며, 수익은 4,690만 달러, 총 이익은 1,930만 달러로, 2023년 3분기의 1,410만 달러에서 증가했습니다. 금 생산량은 18,992온스로, 2023년 3분기의 21,772온스보다 적었습니다. 회사의 전체 유지 비용은 1,501달러로 증가했으며, 이는 2023년 3분기의 1,268달러에서 상승한 것입니다. 운영에서 발생한 순 현금은 460만 달러로 감소했으며, 이는 1,450만 달러에서 줄어든 수치입니다. 주당 14센트의 배당금이 선언되었습니다. 회사는 전력 공급을 유지한 채 2,235만 달러에 태양광 발전소 판매를 위한 조건부 계약을 체결했습니다. 2024년 생산 가이드는 블랭킷 광산에서 74,000~78,000온스로 유지됩니다.
Caledonia Mining a rapporté les résultats du troisième trimestre 2024, avec des revenus de 46,9 millions de dollars et un bénéfice brut de 19,3 millions de dollars, en hausse par rapport aux 14,1 millions de dollars du troisième trimestre 2023. La production d'or a été de 18 992 onces, inférieure aux 21 772 onces du troisième trimestre 2023. Le coût de maintien global de l'entreprise a augmenté à 1 501 dollars par once, contre 1 268 dollars au troisième trimestre 2023. La trésorerie nette provenant des opérations a diminué à 4,6 millions de dollars, contre 14,5 millions de dollars. Un dividende de 14 cents par action a été déclaré. L'entreprise a signé un accord conditionnel pour vendre sa centrale solaire pour 22,35 millions de dollars tout en maintenant l'approvisionnement en électricité. Les prévisions de production pour 2024 restent entre 74 000 et 78 000 onces à la mine Blanket.
Caledonia Mining hat die Ergebnisse des dritten Quartals 2024 bekannt gegeben, mit Einnahmen von 46,9 Millionen US-Dollar und einem Bruttogewinn von 19,3 Millionen US-Dollar, was einem Anstieg von 14,1 Millionen US-Dollar im dritten Quartal 2023 entspricht. Die Goldproduktion betrug 18.992 Unzen und lag damit unter den 21.772 Unzen des dritten Quartals 2023. Die gesamten nachhaltigen Kosten des Unternehmens stiegen auf 1.501 US-Dollar pro Unze, von 1.268 US-Dollar im dritten Quartal 2023. Der Netto-Cashflow aus dem Geschäft betrug 4,6 Millionen US-Dollar, ein Rückgang von 14,5 Millionen US-Dollar. Eine Dividende von 14 Cent pro Aktie wurde erklärt. Das Unternehmen hat eine bedingte Vereinbarung unterzeichnet, um sein Solarkraftwerk für 22,35 Millionen US-Dollar zu verkaufen und gleichzeitig die Energieversorgung aufrechtzuerhalten. Der Produktionsausblick für 2024 bleibt zwischen 74.000 und 78.000 Unzen in der Blanket-Mine.
- Gross profit increased to $19.3M from $14.1M YoY
- Solar plant sale agreement for $22.35M, generating profit over $14.3M construction cost
- Nine-month gold production increased to 56,815 oz from 55,244 oz YoY
- Quarterly dividend of 14 cents maintained
- Quarterly gold production decreased to 18,992 oz from 21,772 oz YoY
- AISC increased to $1,501/oz from $1,268/oz YoY
- Operating cash flow declined to $4.6M from $14.5M YoY
- On-mine cost guidance increased to $950-$1,050/oz from $870-$970/oz
- Workplace fatality reported at Blanket mine
Insights
The Q3 2024 results show mixed performance. Revenue reached
Production performance raises some concerns. Gold output of 18,992 ounces fell below the previous year's 21,772 ounces, impacted by lower grades and reduced recoveries. While nine-month production shows improvement at 56,815 ounces versus 55,244 ounces, cost pressures from labor and electricity pose challenges. The tragic fatality highlights operational risks. The company's strategic focus on inventory buildup for maintenance, though impacting near-term cash flow, should help stabilize future production. The Bilboes sulphide project and Motapa exploration represent key growth opportunities but require significant capital allocation decisions.
ST HELIER, Jersey, Nov. 11, 2024 (GLOBE NEWSWIRE) -- Caledonia Mining Corporation Plc ("Caledonia" or “the Company") (NYSE AMERICAN: CMCL; AIM: CMCL; VFEX: CMCL) announces its operating and financial results for the quarter and the nine months ended September 30, 2024 (the "Quarter" and "nine months" respectively). Further information on the financial and operating results for both can be found in the management discussion and analysis ("MD&A") and the unaudited financial statements, which are available on the Company's website and are being filed on SEDAR+ and EDGAR.
Financial and Corporate Highlights
- Revenues in the Quarter of
$46.9 million ; nine months’ revenue of$135.5 million . - Gross profit in the Quarter of
$19.3 million increased from$14.1 million in the third quarter of 2023 (the “comparable quarter" or “Q3 2023”) due to the higher gold price and lower costs of the Bilboes oxide mine. - Consolidated on-mine cost per ounce for the Quarter of
$1,056 (Q3 2023:$928) . The increase was mainly due to lower ounces sold and higher production costs at Blanket. - The group’s all-in sustaining cost ("AISC") for the Quarter was
$1,501 per ounce (Q3 2023:$1,268 per ounce), the increase being due to lower ounces sold, higher on-mine costs (primarily labour and electricity) and increased cash-settled share-based payment expenses in the Quarter due to the increase in Caledonia's share price. - Basic IFRS earnings per share ("EPS") for the Quarter of 12.0 cents (Q3 2023: 24.1 cents).
- Adjusted EPS1 for the Quarter of 26.2 cents (Q3 2023: 29.9 cents).
- Net cash from operating activities in the Quarter was
$4.6 million , lower than the$14.5 million earned in the comparable quarter due to lower operating profits, increased realised foreign exchange losses due to the devaluation of the Zimbabwean currency (“ZiG”), increased tax payments due to timing of payments, and increased working capital due to accelerating spend on inventory levels during the Quarter to support preventative maintenance initiatives and reduce potential production delays. Operating cashflow in the Quarter before working capital movements was$16.2 million (Q3 2023:$16.3 million ). - A further dividend of 14 cents per share has been declared on November 11, 2024 and will be paid on December 6, 2024. To streamline the administration relating to board processes, and as previously announced, dividends are now expected to be approved at the same time as the publication of quarterly results.
Operational Summary
- Regrettably, a fatality occurred on September 21, 2024 as a result of a rock fall while a Blanket mine employee was performing support drilling activities in a decline area. Caledonia takes the safety of its employees very seriously and, accordingly, measures have been taken to reinforce adherence to prescribed safety procedures.
- Quarterly gold production of 18,992 ounces was lower than the 21,772 ounces produced in the comparable quarter (which established a new production record) due to lower grade and reduced metallurgical recoveries.
- Gold produced in the nine months was 56,815 ounces (nine months 2023: 55,244 ounces) at Blanket.
- Caledonia reiterates gold production guidance for 2024 of between 74,000 and 78,000 ounces2 at Blanket.
- On-mine cost guidance for 2024 at Blanket has increased to between
$950 and$1,050 per ounce from the previous guidance of$870 t o$970 per ounce due to higher labour and electricity costs. Management is pursuing initiatives to achieve cost reductions in both of these areas. - A conditional sale agreement to sell the company which owns the 12.2MWac solar plant for
$22.35 million , payable in cash, was signed on September 30, 2024. Upon completion of the sale, Caledonia will realise a profit on the$14.3 million construction cost while Blanket will retain the exclusive supply of energy. $2.3 million increase in inventory levels during the Quarter to support preventative maintenance initiatives and reduce potential production delays.$2.7 million planned in the last quarter of 2024.- Caledonia has published encouraging results from its recent exploration programme at Motapa, which comprised deeper drilling below historic open pits and shallower drilling in a new target area.
Strategy and Outlook: increased focus on growth opportunities
The immediate strategic focus is to:
- Maintain production at Blanket at the targeted range of 74,000 to 78,000 ounces for 2024 and at a similar level for 2025;
- Complete the Caledonia feasibility study on the Bilboes sulphide project (expected first quarter of 2025); progress development funding solutions; commence development of the sulphide project; and
- Continue with exploration activities at Motapa.
Commenting on the announcement, Mark Learmonth, Chief Executive Officer, said:
“I am pleased to report that production for the Quarter was in line with expectations and we remain on track to meet our production guidance for the year.
“Regrettably, during the Quarter we had a fatality at Blanket. I would like to extend our condolences to the family and friends of the deceased. We remain committed to improving our safety performance and delivering a zero-harm environment.
“We continue to explore ways to reduce on-mine costs at Blanket – particularly the cost of electricity and labour where several initiatives are being implemented and further measures are under consideration.
“In parallel, we continue to carefully manage our cashflows and working capital, albeit we have made the strategic decision to accelerate investment in inventory levels during the Quarter to support preventative maintenance initiatives and reduce potential production delays. This investment would have previously been scheduled for 2025. Our cash reserves have also been negatively impacted by the currency devaluation in Zimbabwe during the Quarter.
“During the Quarter, Caledonia announced the signing of a conditional sale agreement to sell the subsidiary that owns the 12.2MWac solar plant which supplies power to Blanket for
“Blanket remains a solid foundation for our growth profile in Zimbabwe; our exploration activities at both Blanket and Motapa continue to deliver encouraging results, playing to our future growth ambitions.
“We continue to progress the revised feasibility study for the Bilboes sulphide project with a focus on capital allocation and expect to complete this in the first quarter of 2025. We are also making encouraging progress towards identifying and implementing a funding structure for Bilboes with the objective of minimising equity dilution and optimising the uplift in net present value per Caledonia share. We are excited by this opportunity to evolve our business and expand our production profile, which we believe will generate significant long term shareholder value.”
Caledonia will host an online presentation and Q&A session open to all investors on 11 November at 14.00 London Time
You are invited to a Zoom webinar.
When: Nov 11, 2024 02:00 PM London
Topic: Q3 2024 Results call for Investors
Register in advance for this webinar:
https://caledoniamining.zoom.us/webinar/register/WN_ZHTT-Ji5RDylrtSaSYE0fA
After registering, you will receive a confirmation email containing information about joining the webinar.
Enquiries:
| Caledonia Mining Corporation Plc Mark Learmonth Camilla Horsfall | Tel: +44 1534 679 800 Tel: +44 7817 841 793 | |
| Cavendish Capital Markets Limited (Nomad and Joint Broker) Adrian Hadden Pearl Kellie | Tel: +44 207 397 1965 Tel: +44 131 220 9775 | |
| Panmure Liberum Limited (Joint Broker) Scott Mathieson Matt Hogg | Tel: +44 20 3100 2000 | |
| Camarco, Financial PR (UK) Gordon Poole Julia Tilley Elfie Kent | Tel: +44 20 3757 4980 | |
| 3PPB (Financial PR, North America) Patrick Chidley Paul Durham | Tel: +1 917 991 7701 Tel: +1 203 940 2538 | |
| Curate Public Relations (Zimbabwe) Debra Tatenda | Tel: +263 77802131 | |
| IH Securities (Private) Limited (VFEX Sponsor - Zimbabwe) Lloyd Mlotshwa | Tel: +263 (242) 745 119/33/39 |
Craig James Harvey, MGSSA, MAIG, Caledonia Vice President, Technical Services, has reviewed and approved the scientific and technical information contained in this news release. Craig James Harvey is a "Qualified Person" as defined by each of (i) the Canadian Securities Administrators' National Instrument 43-101 - Standards of Disclosure for Mineral Projects and (ii) sub-part 1300 of Regulation S-K of the U.S. Securities Act.
Note:
This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation (EU) No. 596/2014 (“MAR”) as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 and is disclosed in accordance with the Company's obligations under Article 17 of MAR.
Cautionary Note Concerning Forward-Looking Information
Information and statements contained in this news release that are not historical facts are “forward-looking information” or “forward-looking statements” within the meaning of applicable securities legislation (collectively, “forward-looking information”) 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 and cost guidance, estimates of future/targeted production rates, our plans and timing regarding further exploration and drilling and development at Motapa, the development of the Bilboes Sulphide Project, the continuation of dividend payments, the currency devaluation in Zimbabwe, and our plans and timing regarding the completion of the sale of the 12.2MWac solar plant. 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 information. 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.
| Condensed Consolidated Statements of profit or loss and Other comprehensive income (Unaudited) | |||||
| ($’000’s) | |||||
| 3 months ended September 30 | 9 months ended September 30 | ||||
| 2024 | 2023 | 2024 | 2023 | ||
| Revenue | 46,868 | 41,187 | 135,503 | 107,653 | |
| Royalty | (2,422) | (2,207) | (6,831) | (5,650) | |
| Production costs | (21,085) | (20,452) | (60,505) | (61,028) | |
| Depreciation | (4,048) | (4,385) | (12,106) | (10,049) | |
| Gross profit | 19,313 | 14,143 | 56,061 | 30,926 | |
| Net foreign exchange loss | (3,129) | (257) | (9,282) | (2,334) | |
| Administrative expenses | (3,954) | (2,889) | (10,229) | (11,890) | |
| Net derivative financial instrument expenses | (20) | (102) | (496) | (590) | |
| Equity-settled share-based expense | (279) | (233) | (785) | (564) | |
| Cash-settled share-based expense | (422) | (27) | (479) | (298) | |
| Other expenses | (2,814) | (701) | (4,078) | (2,800) | |
| Other income | 16 | 62 | 365 | 127 | |
| Operating profit | 8,711 | 9,996 | 31,077 | 12,577 | |
| Net finance costs | (824) | (508) | (2,344) | (2,332) | |
| Profit before tax | 7,887 | 9,488 | 28,733 | 10,245 | |
| Tax expense | (4,600) | (3,777) | (12,281) | (8,552) | |
| Profit for the period | 3,287 | 5,711 | 16,452 | 1,693 | |
| Other comprehensive income | |||||
| Items that are or may be reclassified to profit or loss | |||||
| Exchange differences on translation of foreign operations | 629 | (79) | 663 | (778) | |
| Total comprehensive income for the period | 3,916 | 5,632 | 17,115 | 915 | |
| Profit (loss) attributable to: | |||||
| Owners of the Company | 2,267 | 4,506 | 12,827 | (1,036) | |
| Non-controlling interests | 1,020 | 1,205 | 3,625 | 2,729 | |
| Profit for the period | 3,287 | 5,711 | 16,452 | 1,693 | |
| Total comprehensive income attributable to: | |||||
| Owners of the Company | 2,896 | 4,427 | 13,490 | (1,814) | |
| Non-controlling interests | 1,020 | 1,205 | 3,625 | 2,729 | |
| Total comprehensive income for the period | 3,916 | 5,632 | 17,115 | 915 | |
| Earnings (loss) per share (cents) | |||||
| Basic | 12.0 | 24.1 | 65.5 | (6.8) | |
| Diluted | 12.0 | 24.0 | 65.5 | (6.8) | |
| Adjusted earnings per share (cents) | |||||
| Basic | 26.2 | 29.9 | 84.9 | 6.0 | |
| Dividends paid per share (cents) | 14.0 | 14.0 | 42.0 | 56.0 | |
| Summarised Consolidated Statements of Financial Position (Unaudited) | |||
| ($’000’s) | As at | Sep-30 | Dec-31 |
| 2024 | 2023 | ||
| Total non-current assets | 279,803 | 274,074 | |
| Income tax receivable | 70 | 1,120 | |
| Inventories | 22,732 | 20,304 | |
| Derivative financial assets | - | 88 | |
| Trade and other receivables | 9,651 | 9,952 | |
| Prepayments | 6,717 | 2,538 | |
| Cash and cash equivalents | 7,204 | 6,708 | |
| Assets held for sale | 13,483 | 13,519 | |
| Total assets | 339,660 | 328,303 | |
| Total non-current liabilities | 26,307 | 23,978 | |
| Cash-settled share-based payments - short term portion | 1,081 | 920 | |
| Income tax payable | 2,244 | 10 | |
| Lease liabilities – short term portion | 94 | 167 | |
| Loan notes – short term portion | 855 | 665 | |
| Trade and other payables | 22,278 | 20,503 | |
| Overdraft and term loans | 14,839 | 17,740 | |
| Liabilities associated with assets held for sale | 98 | 128 | |
| Total liabilities | 67,796 | 64,111 | |
| Total equity | 271,864 | 264,192 | |
| Total equity and liabilities | 339,660 | 328,303 | |
| Condensed Consolidated Statements of Cash Flows (Unaudited) | ||||
| ($’000’s) | ||||
| 3 months ended September 30 | 9 months ended September 30 | |||
| 2024 | 2023 | 2024 | 2023 | |
| Cash inflow from operations | 11,407 | 16,963 | 38,930 | 17,629 |
| Interest received | 7 | 21 | 16 | 30 |
| Finance costs paid | (781) | (331) | (2,064) | (1,762) |
| Tax paid | (6,042) | (2,158) | (8,318) | (4,504) |
| Net cash inflow from operating activities | 4,591 | 14,495 | 28,564 | 11,393 |
| Cash flows used in investing activities | ||||
| Acquisition of property, plant and equipment | (6,751) | (9,573) | (17,389) | (20,175) |
| Acquisition of exploration and evaluation assets | (245) | (597) | (1,408) | (880) |
| Acquisition of put options | – | (1) | (408) | (812) |
| Net cash used in investing activities | (6,996) | (10,171) | (19,205) | (21,867) |
| Cash flows from financing activities | ||||
| Dividends paid | (3,430) | (2,801) | (9,062) | (8,118) |
| Payment of lease liabilities | (39) | (36) | (114) | (108) |
| Shares issued – equity raise (net of transaction cost) | – | – | – | 15,658 |
| Proceeds from long term loans | 1 | – | 2,033 | – |
| Repayments of term loans | (262) | – | (262) | – |
| Loan notes - Motapa payment | – | (563) | – | (7,250) |
| Loan notes - solar bond issue receipts (net of transaction cost) | – | – | 1,939 | 7,000 |
| Net cash (used in)/ from financing activities | (3,730) | (3,400) | (5,466) | 7,182 |
| Net (decrease) increase in cash and cash equivalents | (6,135) | 924 | 3,893 | (3,292) |
| Effect of exchange rate fluctuations on cash and cash equivalents | (134) | (1,209) | (496) | (1,396) |
| Net cash and cash equivalents at beginning of the period | (1,366) | (2,907) | (11,032) | 1,496 |
| Net cash and cash equivalents at end of the period | (7,635) | (3,192) | (7,635) | (3,192) |
1 Adjusted EPS excludes net foreign exchange movements (including the deferred tax effect and the non-controlling interest thereon) and deferred tax. A reconciliation of IFRS EPS to Adjusted EPS is set out in section 10.3 of the MD&A.
2 Refer to technical report "NI 43-101 Technical Report on the Blanket Gold Mine, Zimbabwe" with effective date December 31, 2023 prepared by Caledonia Mining Corporation Plc and filed by the Company on SEDAR+ (www.sedarplus.ca) on May 15, 2024
FAQ
What was Caledonia Mining's (CMCL) revenue in Q3 2024?
How much gold did CMCL produce in Q3 2024?
What is CMCL's gold production guidance for 2024?
How much is CMCL selling its solar plant for?
