Caledonia Mining (AIM: CMCL)
Announced its operating and financial results for the quarter and the six months ended June 30, 2023.
Gross revenues of $37.0 million compared to $37.09 million achieved in Q2 2022, and a gross profit of $10.9 million (Q2 2022: $17.9 million).
|Caledonia Mining||AIM: CMCL|
|Market cap||£169 m @ £8.10|
RNS Number : 8602I
Caledonia Mining Corporation PLC
10 August 2023
Caledonia Mining Corporation Plc
Results for the Quarter ended June 30, 2023
(NYSE AMERICAN: CMCL; AIM: CMCL; VFEX: CMCL)
August 10, 2023: Caledonia Mining Corporation Plc (“Caledonia” or the “Company”) announces
its operating and financial results for the quarter and the six months ended June 30, 2023 (the
“Quarter” and “First Half” respectively). Further information on the financial and operating results
for the Quarter and First Half 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 on
Financial Summary for the Quarter
· Gross revenues of $37.0 million compared to $37.09 million achieved in the
second quarter of 2022 (“Q2 2022”).
· Gross profit of $10.9 million (Q2 2022: $17.9 million). Whilst Blanket Mine
(“Blanket”) contributed $13.1 million, the group’s gross profit was affected by
the costs of waste-stripping at the Bilboes oxide operation, notwithstanding a
small revenue contribution of $2.2 million in the Quarter. Bilboes will be
returned to care and maintenance with effect from October 1, 2023, and,
pending the completion of the feasibility study for the sulphide project, the
remaining oxides will be mined as part of the larger project.
· EBITDA (excluding asset impairments, depreciation and net foreign exchange
gains and losses) of $10.5 million in the Quarter and $11.2 million in the First
Half (Q2 2022: $17.8 million; first half of 2022: $31.4 million).
· On-mine cost per ounce
 for the Quarter of $1,084 included the costs of the
Bilboes oxide operation. At Blanket the on-mine cost per ounce was $915
(Q2 2022: $692). This increase was in large part due to the disappointing
production performance in the Quarter; the production challenges now
appear to have been addressed and July 2023 showed a material
improvement in production and costs.
· All-in sustaining cost (“AISC”) o f $1,357 per ounce (Q2 2022: $984 per
ounce). The AISC per ounce in the Quarter increased due to the factors
referenced above which led to the higher on-mine cost per ounce.
· The Company suffered a foreign exchange loss in the Quarter of $3.6 million
(Q2 2022: $4.2 million gain) due to the significant devaluation of the RTGS
Dollar to USD in June 2023. This affected operating profit and, accordingly,
basic IFRS earnings per share (“EPS”) showed a 0.6 cent loss (Q2 2022: 87.7
cent profit). IFRS EPS reflects the movement in IFRS profit attributable to
shareholders and the effect of new shares issued. Adjusted EPS of 10.0 cents
(Q2 2022: 56.2 cents) is adjusted for realized and unrealized foreign
exchange losses, impairments and fair value adjustments.
· A dividend of 14 cents per share was paid in April 2023; a further dividend of
14 cents per share was paid in July 2023.
· Group net cash outflows from operating activities of $2.2 million in the
Quarter (Q2 2022: $16.7 million inflow) included waste-stripping activities at
Bilboes and the payment of legacy creditors at Bilboes. The waste-stripping
activities will facilitate access to the sulphide mineralization when the
sulphide project is in operation.
· Net cash and cash equivalents at the Quarter end were negative$2.9 million
(Q2 2022: positive $10.9 million). However, the improved operating
performance after the end of the Quarter led to cash inflow from operations
before working capital changes (i.e. revenues less on-mine costs) of $7.7
million in July.
· 17,436 ounces of gold were produced from Blanket in the Quarter (20,091
ounces produced in Q2 2022).
· 1,076 ounces of gold were produced from the Bilboes oxide operation in the
· Bilboes will be returned to care and maintenance.
· 34,653 ounces were produced in the First Half (38,605 ounces produced in
the first half of 2022).
· Published encouraging results from the drilling campaign at Blanket.
· Commenced the direct sale of gold to an end refiner outsideZimbabwe.
Post Quarter Developments
· Production at Blanket in July of 7,829 ounces of gold and strong operating
cash flows therefrom demonstrate that production challenges in the First
Half have been addressed.
· The decision to return Bilboes to a care and maintenance status will stem
cash outflows and losses for the remainder of the year.
· On August 8, Caledonia sadly announced the death of a contractor who
succumbed to injuries sustained in an accident at Blanket.
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