ST HELIER, CHANNEL ISLANDS--(Marketwired - Nov. 13, 2017) - Caledonia Mining Corporation Plc ("Caledonia" or the "Company") (NYSE American:CMCL)(NYSE MKT:CMCL)(AIM:CMCL)(TSX:CAL) announces its operating and financial results for the third quarter ("Q3" or the "Quarter") and nine months to September 30, 2017.
3 months ended
September 30 9 months ended
September 30 Comment
2016 2017 2016 2017
Gold produced (oz) 13,428 14,396 36,760 39,710 Increased gold production in the quarter due to higher grade
On-mine cost per ounce ($/oz)1 618 638 643 663 On mine costs remain broadly stable; slight increase due to the short-term effects of equipment in new working areas below 750 metres
All-in sustaining cost ($/oz)1 ("AISC") 1,004 773 971 827 Lower AISC due to lower administrative expenses and sustaining capital expenditure and the recognition of the export incentive credit in 2017
Average realised gold price ($/oz)1 1,312 1,265 1,247 1,238 Realised gold price reflects the market price
Gross profit2 6,780 7,229 16,604 17,910 Increased gross profit due to higher production and sales, offset by a lower gold price
Net profit attributable to shareholders 1,118 3,120 5,268 6,152 Higher attributable profit for the Quarter due to higher gross profit and reduced administrative and share-based payment expenses
Adjusted basic earnings per share ("EPS")3 (cents) 22.1 40.8 65.4 87.3 Increased adjusted EPS for the Quarter due to higher attributable profit and the add-back of deferred taxation
Cash and cash equivalents 12,390 11,830 12,390 11,830 Cash position remains robust despite increased capital expenditure
Cash from operating activities 7,107 10,118 16,071 16,598 Cash from operating activity benefits from reduced working capital
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 the associated management discussion and analysis for the Quarter ("MD&A") for a discussion of non-IFRS measures.
2 Gross profit is after deducting royalties, production costs and depreciation but before administrative expenses, other income, interest and finance charges and taxation.
3 Adjusted EPS is a non-IFRS measure which aims to reflect Caledonia's ordinary trading performance. Refer to Section 10 of the MD&A for a discussion of non-IFRS measures. Per share data for current and prior periods has been adjusted to reflect the effective 1-for-5 share consolidation which was effected on June 26, 2017.
Commenting on the results, Steve Curtis, Chief Executive Officer, said:
"The third quarter of 2017 was a strong quarter in terms of operating and financial performance. However, this was clouded by a fatality at the Blanket mine in July. I join with my colleagues and fellow Directors in again expressing our sincere condolences to the families and colleagues of the deceased and assure all our stakeholders at Blanket of our continued and unwavering commitment to safe and sustainable operations.
"Gold production in the Quarter achieved a new record: 14,396 ounces of gold were produced in the third quarter - seven per cent more than the third quarter of 2016 and 15 per cent more than in the preceding quarter. The increased production was primarily due to higher grades, which was due to the improved mine flexibility as a result of the measures taken in previous quarters.
"The higher gold production resulted in higher revenues and a substantial increase in profit. Net profit attributable to shareholders in the Quarter was $3.1 million - almost three times higher than the third quarter of 2016 and over four times higher than the preceding quarter.
"The all-in sustaining cost ("AISC") per ounce fell sharply in the Quarter to $773 per ounce compared to $855 per ounce in the previous quarter and $1,004 per ounce in the third quarter of 2016. The reduction was due to higher gold production, which means that fixed costs such as general and administrative costs are spread across more ounces. The lower AISC compared to the third quarter of 2016 was also due to lower general and administrative expenses and the recognition of the export incentive credit which is paid by the Zimbabwean government at a value of three and a half per cent of Blanket's revenues.
"Cash from operating activities in the Quarter was $10.1 million which allowed further investment at Blanket, of approximately $8 million and net cash at the end of the Quarter was $11.8 million compared to $10.8 million at the end of June 2017.
"I am pleased to report that Blanket paid a dividend of $2.5 million at the end of the Quarter which means that Blanket's indigenous shareholders participate in the profit generated by the mine. The payment of a dividend by Blanket also means that Caledonia receives its 49 per cent share of the dividends in addition to repayments on the facilitation loans that are due to Caledonia from Blanket's indigenous shareholders.
"On November 2, Caledonia published a resource update in which the Measured and Indicated resources at Blanket Mine increased by six per cent from 671,000 ounces at December 31, 2016 to 714,000 ounces as at August 31, 2017. In addition, the ounces included in Inferred resources increased by 47 per cent to 887,000 ounces. The increase in resources is a testament to our increased focus on exploration and resource development in recent years.
"In light of the increased resources, Caledonia announced on November 10, 2017 that the Central Shaft project will be extended by a further 240 metres to a depth of 1,330 metres, thereby providing access to the deeper resources that we have now identified. The extension to the Central Shaft will cost $10 million and is expected to extend Blanket's life of mine by a further four years to 2031 and should allow Blanket to maintain its target production rate of 80,000 ounces from 2021 until at least 2029 based on the existing resources."
Note: This announcement includes inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.
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, etc. etc.
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Caledonia Mining Corporation Plc
(NYSE American: CMCL; AIM: CMCL; TSX: CAL)
Notification of further information relating to significant shareholder
November 13, 2017: further to the announcement by Caledonia Mining Corporation Plc (“Caledonia” or the “Company”) on September 8, 2017 that the Company had ascertained that VP Bank AG holds an interest in 938,773 common shares of the Company (which represents approximately 8.9% of the issued share capital of Caledonia) as an intermediary on behalf of Sales Promotion Services S.A.,
Caledonia was informed on November 2, 2017 that the beneficial owner of Sales Promotion Services
S.A. is Heinrich Auwärter.
Caledonia Mining Corporation Plc