02:00 Thu 12 Nov 2020
Caledonia Mining Crp - Results for the quarter ended September 30, 2020
Caledonia Mining Corporation Plc
Results for the quarter ended
(NYSE AMERICAN: CMCL; AIM: CMCL)
Financial Highlights for the Quarter
· Gross revenues of
· Gross profit[1] of
· EBITDA[2] (excluding net foreign exchange gains and share based payments) of
· The on-mine cost per ounce[3] increased from
· The all-in sustaining cost per ounce3 increased from
· Basic IFRS earnings per share ("EPS") of
· Adjusted EPS3 of
· Net cash from operating activities of
· Net cash and cash equivalents of
· Total dividend paid in the Quarter of
Operating Highlights
· 15,155 ounces of gold produced in the Quarter (Q3 2019, 13,646 ounces); 42,887 ounces produced in the Nine Months (first nine months of 2019, 38,306 ounces).
· Tonnes mined and milled in the Quarter increased by 10 per cent compared to Q3 2019; recoveries were also slightly improved.
· Equipping of Central Shaft continued in the Quarter at an increased rate as operations returned to normal following the relaxation of measures to prevent the spread of COVID-19.
Effect of COVID-19 and Outlook
· COVID-19 had no effect on production in the Quarter which was above target for the Nine Months.
· Production guidance for 2020 increased from 53,000 to 56,000 ounces to 55,000 to 58,000 ounces.
· Progress on the Central Shaft returned to the planned rate as travel and transport restrictions were lifted. Central Shaft is expected to be fully equipped by the end of 2020 and to be commissioned in the first quarter of 2021 - approximately three months later than expected due to the delays arising from COVID-19. Production guidance for 2021 is 61,000 to 67,000 ounces; guidance for 2022 is approximately 80,000 ounces.
· Voltalia, an international renewable energy provider, has been appointed as the contractor for the 12MW solar project which is expected to be commissioned before the end of 2021 and is expected to provide approximately 27 per cent of Blanket's average daily electricity requirements.
Dividend
· The July dividend was increased by 13.3 per cent to
· The cumulative increase in the dividend per share since
· Further dividend increases will depend on the balance between delivering returns to shareholders and pursuing the significant growth opportunities within
"I am delighted by
"Cost control in the Quarter continued to be excellent, but a comparison of the costs for the Quarter to costs in the third quarter of 2019 is complicated by factors which somewhat increased the costs in this Quarter. The on-mine cost per ounce in the Quarter was
"The all-in sustaining cost per ounce for the Quarter was
"Notwithstanding these and other factors, we remain on track to achieve our cost guidance for 2020 of between
"The excellent performance was also reflected in continued strong cash generation: net cash flow from operating activities (i.e. before interest, taxation payments and capital expenditure) was
"During the Quarter we raised
"Caledonia ended the Quarter with net cash and cash equivalents of
"The continued strong performance was achieved without compromising on safety performance. The Total Injury Frequency Rate has been substantially reduced from the levels in 2019 after a concerted effort by management over the last 18 months to improve and enforce safety standards. I am also very pleased to report that in the Quarter we achieved one million manhours at the Central Shaft project without incurring any serious injury.
"Interruptions to the supply of electricity from the grid have continued, but Blanket manages these using its increased suite of diesel generators. In the previous quarter we resolved to construct a 12MW solar plant at a cost of approximately
"The coronavirus pandemic had no appreciable effect on Blanket's production in the Quarter and a minor effect on costs. However, work on Central Shaft has been slower than planned because travel restrictions imposed to control the spread of COVID-19 affected the movement of specialised equipment and contractors between
"In light of the improved performance and the brighter outlook for 2020 and beyond, Caledonia increased its quarterly dividend from
For further information please contact:
Caledonia Mining Corporation Plc |
Tel: +44 1534 679 800 Tel: +44 7817841 793 |
WH Ireland (Nomad & Broker) |
Tel: +44 20 7220 1751 |
Blytheweigh |
Tel: +44 207 138 3204 |
3PPB |
Tel: +1 917 991 7701 Tel: +1 203 940 2538 |
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", "envisage", "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.
Securityholders, potential securityholders 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. 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.
This news release is not an offer of the common shares of Caledonia for sale in
Condensed consolidated statements of profit and loss and other comprehensive income (in thousands of
|
||||||
|
Three months ended |
|
Nine months ended |
|
||
Unaudited |
|
|
|
|
||
|
2020 |
2019 |
|
2020 |
2019 |
|
Revenue |
25,359 |
19,953 |
|
71,874 |
52,393 |
|
Less: Royalty |
(1,271) |
(999) |
|
(3,599) |
(2,682) |
|
Production costs |
(10,399) |
(9,410) |
|
(32,537) |
(26,750) |
|
Depreciation |
(1,143) |
(1,059) |
|
(3,457) |
(3,159) |
|
Gross profit |
12,546 |
8,485 |
|
32,281 |
19,802 |
|
Other income |
27 |
5 |
|
4,736 |
2,043 |
|
Other expenses |
(305) |
(173) |
|
(1,827) |
(482) |
|
Administrative expenses |
(2,539) |
(1,246) |
|
(5,361) |
(3,951) |
|
Cash-settled share-based payment |
(231) |
(36) |
|
(1,177) |
(406) |
|
Net foreign exchange gain |
985 |
3,345 |
|
4,694 |
28,270 |
|
Profit on sale of subsidiary |
- |
- |
|
- |
5,409 |
|
Fair value gain/ (loss) on derivative assets |
27 |
- |
|
(121) |
(324) |
|
Operating profit |
10,510 |
10,380 |
|
33,225 |
50,361 |
|
Finance income |
4 |
30 |
|
36 |
80 |
|
Finance cost |
(91) |
(46) |
|
(390) |
(116) |
|
Profit before tax |
10,423 |
10,364 |
|
32,871 |
50,325 |
|
Tax expense |
(4,993) |
(1,858) |
|
(11,410) |
(3,154) |
|
Profit for the period |
5,430 |
8,506 |
|
21,461 |
47,171 |
|
|
|
|
|
|
|
|
Other comprehensive income |
|
|
|
|
|
|
Items that are or may be reclassified to profit or loss |
|
|
|
|
|
|
Exchange differences on translation of foreign operations |
(88) |
(353) |
|
(1,146) |
(353) |
|
Reclassification of accumulated exchange differences on the sale of subsidiary |
- |
- |
|
- |
(2,109) |
|
Total comprehensive income for the period |
5,342 |
8,153 |
|
20,315 |
44,709 |
|
|
|
|
|
|
|
|
Profit attributable to: |
|
|
|
|
|
|
Owners of the Company |
4,433 |
7,007 |
|
17,807 |
39,628 |
|
Non-controlling interests |
997 |
1,499 |
|
3,654 |
7,543 |
|
Profit for the period |
5,430 |
8,506 |
|
21,461 |
47,171 |
|
|
|
|
|
|
|
|
Total comprehensive income attributable to: |
|
|
|
|
|
|
Owners of the Company |
4,345 |
6,654 |
|
16,661 |
37,166 |
|
Non-controlling interests |
997 |
1,499 |
|
3,654 |
7,543 |
|
Total comprehensive income for the period |
5,342 |
8,153 |
|
20,315 |
44,709 |
|
|
|
|
|
|
|
|
Earnings per share |
|
|
|
|
|
|
Basic earnings per share ($) |
0.37 |
0.63 |
|
1.50 |
3.60 |
|
Diluted earnings per share ($) |
0.37 |
0.63 |
|
1.50 |
3.60 |
|
Condensed consolidated statements of financial position (in thousands of
|
||||
Unaudited |
|
|
|
|
As at |
|
2020 |
2019 |
|
|
|
|
|
|
Assets |
|
|
|
|
Property, plant and equipment |
|
123,923 |
113,651 |
|
Deferred tax asset |
|
105 |
63 |
|
Total non-current assets |
|
124,028 |
113,714 |
|
|
|
|
|
|
Inventories |
|
14,280 |
11,092 |
|
Prepayments |
|
4,254 |
2,350 |
|
Trade and other receivables |
|
6,839 |
6,912 |
|
Derivative financial assets |
|
1,160 |
102 |
|
Cash and cash equivalents |
|
21,562 |
9,383 |
|
Total current assets |
|
48,095 |
29,839 |
|
Total assets |
|
172,123 |
143,553 |
|
|
|
|
|
|
Equity and liabilities |
|
|
|
|
Share capital |
|
74,696 |
56,065 |
|
Reserves |
|
137,337 |
140,730 |
|
Retained loss |
|
(73,240) |
(88,380) |
|
Equity attributable to shareholders |
|
138,793 |
108,415 |
|
Non-controlling interests |
|
15,913 |
16,302 |
|
Total equity |
|
154,706 |
124,717 |
|
|
|
|
|
|
Provisions |
|
3,404 |
3,346 |
|
Deferred tax liabilities |
|
1,724 |
3,129 |
|
Term loan facility - long term portion |
|
193 |
1,942 |
|
Cash-settled share-based payment - long term portion |
|
1,692 |
540 |
|
Total non-current liabilities |
|
7,013 |
8,957 |
|
|
|
|
|
|
Term loan facility - short term portion |
|
322 |
529 |
|
Cash-settled share-based payment - short term portion |
|
285 |
- |
|
Income taxes payable |
|
1,902 |
163 |
|
Trade and other payables |
|
7,895 |
8,697 |
|
Overdraft |
|
- |
490 |
|
Total current liabilities |
|
10,404 |
9,879 |
|
Total liabilities |
|
17,417 |
18,836 |
|
Total equity and liabilities |
|
172,123 |
143,553 |
|
|
|
|
|
|
Condensed consolidated statements of cash flows (in thousands of
|
|||||||
Unaudited |
|
Three months ended |
|
Nine months ended |
|
||
|
|
|
|
|
|
||
|
Note |
2020 |
2019 |
|
2020 |
2019 |
|
|
|
|
|
|
|
|
|
Cash generated from operations |
18 |
7,393 |
4,886 |
|
23,764 |
14,003 |
|
Net interest paid |
|
(74) |
(33) |
|
(337) |
(129) |
|
Tax paid |
|
(2,048) |
- |
|
(4,082) |
(608) |
|
Net cash from operating activities |
|
5,271 |
4,853 |
|
19,345 |
13,266 |
|
|
|
|
|
|
|
|
|
Cash flows used in investing activities |
|
|
|
|
|
|
|
Acquisition of property, plant and equipment |
|
(8,007) |
(5,583) |
|
(15,928) |
(14,909) |
|
Purchase of derivative financial asset |
|
- |
- |
|
(1,058) |
- |
|
Proceeds from disposal of subsidiary |
|
- |
- |
|
900 |
1,000 |
|
Net cash used in investing activities |
|
(8,007) |
(5,583) |
|
(16,086) |
(13,909) |
|
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
|
Dividends paid |
|
(1,129) |
(883) |
|
(3,110) |
(2,503) |
|
Payment of lease liabilities |
|
(30) |
- |
|
(87) |
- |
|
Shares issued - equity raise |
17 |
12,538 |
- |
|
12,538 |
- |
|
Share options exercised |
|
- |
- |
|
30 |
- |
|
Net cash used in financing activities |
|
11,379 |
(883) |
|
9,371 |
(2,503) |
|
|
|
|
|
|
|
|
|
Net increase/ (decrease) in cash and cash equivalents |
|
8,643 |
(1,613) |
|
12,630 |
(3,146) |
|
Effect of exchange rate fluctuations on cash held |
|
1,280 |
1,063 |
|
39 |
(15) |
|
Net cash and cash equivalents at the beginning of the period |
|
11,639 |
9,742 |
|
8,893 |
11,187 |
|
Net cash and cash equivalents at the end of the period |
|
21,562 |
9,192 |
|
21,562 |
8,026 |
|
|
|
|
|
|
|
|
|
[1] Gross profit is after deducting royalties, production costs and depreciation but before administrative expenses, other income, interest and finance charges and taxation.
[2] EBITDA is after deducting royalties, production costs and administrative expenses, but is before depreciation, net other income, profit on sale of a subsidiary, net foreign exchange gains, cash-settled share-based payments, hedging expenses, finance charges and taxation.
[3] Non-IFRS measures such as "on-mine cost per ounce", "all-in sustaining cost" and "adjusted EPS" are used throughout this announcement. Refer to section 10 of the MD&A for a discussion of non-IFRS measures.
[4] Mr
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