Caledonia Mining Corporation Plc: Results for the First Quarter of 2017
(firmenpresse) -
Caledonia Mining Corporation Plc: Results for the First Quarter of 2017
St Helier, 10 May 2017 - Caledonia Mining Corporation Plc (Caledonia or the Company - http://www.commodity-tv.net/c/search_adv/?v=297483) announces its operating and financial results for the first quarter of 2017 (Q1 or the Quarter).
Gold production in the Quarter was 18 per cent higher than in Q1 2016 and adjusted earnings per share of 5.3 cents were approximately double the corresponding figure in 2016.
Q1 Q1 Comment
2016 2017
Gold produced (10,82212,794Increased production due to increased
oz tonnes
) milled, higher grade and improved
recoveries
On-mine cost 689 659 Lower cost per ounce as fixed costs
per ounce are spread across increased
($/ production
oz) ounces
All-in 956 857 Lower cost per ounce due to lower
Sustaining on-mine cost, the export incentive
Cost credit and lower sustaining capital
($/ expenditure, however, this was
oz) (AISC) offset by higher share-based payment
costs
Average realise1,166 1,213 Increased realised gold price
d reflects the increase in gold
gold price ($/ price
oz
)
Gross profit 3,888 5,646 Increased gross profit due to higher
sales, higher
realised gold price and lower costs
per ounce
Net profit 543 2,338 Increased profit attributable to
attributable shareholders due to higher gross
to profit, the export incentive credit
shareholders and the elimination of the hedging
costs incurred in Q1
2016
Adjusted basic 2.7 5.3 Increased adjusted earnings per share
earnings per due to higher attributable
share (EPS) profit
(cents)
Net cash and 8,841 11,722Increased cash due to increased
cash operating
equivalents
cashflows, offset by increased
working capital, particularly
prepayments for capital goods, and
continued high levels of
investment
Cash from 1,749 1,779 Cash from operating activities
operating benefitted from higher profit but
activities was adversely affected by increased
working capital and higher tax
payments
Commenting on the results, Steve Curtis, Caledonias Chief Executive Officer said:
The first quarter of 2017 showed an 18 per cent increase in production from the corresponding quarter in 2016. As the Blanket Mine (Blanket) has demonstrated in the past, increased production results in lower unit costs as the fixed cost component is spread across more production ounces. On-mine costs were four per cent lower than the comparable quarter of 2016 at $659 per ounce and all in sustaining costs were 10 per cent lower at $857 per ounce.
Higher gold production at a lower unit cost and a four per cent increase in the average realised gold price to $1,213 per ounce all contributed to increased adjusted earnings per share of 5.3 US cents for the quarter, an increase of 96 per cent on the corresponding quarter of 2016.
I am pleased that we have delivered the improved financial and operating performance whilst we have simultaneously continued to implement a significant capital project in the sinking of the new Central Shaft. The Central Shaft is currently at a depth of 750m and remains on track to commence production in the second half of 2018. Once complete, I expect the Central Shaft to enhance the operating efficiency at Blanket as it will transform the existing underground infrastructure, reduce travel times for employees to get to mining areas, shorten the tramming distances and reduce the time required to hoist ore to surface. The Central Shaft will also enable us to access deeper level resources below the 750m level and give us the flexibility to increase the pace of deep level exploration and development, securing the future of the mine for many years to come.
The business continues to be strongly cash generative with operating cash flow during the quarter of $1.8 million contributing to a robust balance sheet and the Companys gross cash position at the end of the quarter was $11.9m. Our cash balance declined slightly from the 2016 year-end figure of $14.3m, due to significant capital investment during the quarter and the normalisation of Blankets working capital. I expect that 2017 will be the final year of significant capital investment in the Central Shaft project.
We have noticed mixed operating conditions in Zimbabwe in 2017. The electricity supply continues to be unstable and we continue to install equipment to protect against any future instability. We also noted an improvement in the availability of foreign exchange towards the end of the Quarter which is required to make payments outside Zimbabwe. The export incentive credit introduced in 2016 continues to contribute to the bottom line with the credit received by Blanket increasing from 2.5 per cent to 3.5 per cent of revenues with effect from 1 January 2017, contributing $576,000 in the Quarter.
Notwithstanding the improvements in underground tramming, Blanket has not been able to transport the volume of material that is necessary to achieve the target of 60,000 ounces of gold in 2017 whilst maintaining the rate of capital development that is necessary to achieve future production goals of 80,000 ounces per year by 2021. Accordingly, on May 9 2017 Caledonia announced that, in the long term interests of the business, the 2017 production tonnage target should be reduced so that the required development can be done, thereby safeguarding future production. The revised production target for 2017 is between 52,000 and 57,000 ounces of gold.
Strategy and Outlook
Caledonia remains on track to achieve the production target of 80,000 ounces by 2021 at its Zimbabwean subsidiary, Blanket Mine. The companys 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. Caledonias board and management believe the successful implementation of the fully funded 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 Blankets long term future. Caledonias cash position is expected to improve as a result of the implementation of the Investment Plan.
Dividend Policy
In July, 2016 Caledonia announced an increase in 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 Caledonias current dividend policy. It is currently envisaged that the dividend of 5.5 United States cents per annum will be maintained.
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 financial information set out below is on a 100 per cent basis unless otherwise indicated.
For further information please contact:
Caledonia Mining Corporation Plc
Mark Learmonth
Tel: +44 1534 679 802 or +27 11 447 2499
Maurice Mason-
Tel: +44 759 078 1139
WH Ireland
Adrian Hadden/Nick Prowting-
Tel: +44 20 7220 1751
Blytheweigh
Tim Blythe/Camilla Horsfall/Megan Ray
Tel: +44 207 138 3204
Swiss Resource Capital AG
Jochen Staiger
info(at)resource-capital.ch
www.resource-capital.ch
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 Caledonias 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 Companys 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 Unaudited Consolidated Statement of Profit or Loss and
Other Comprehensive
Income
($000s)
3 months ended March 31
2017 2016
$ $
Revenue 16,449 13,423
Royalty (823) (672)
Production costs (9,098) (8,042)
Depreciation (882) (821)
Gross profit 5,646 3,888
Other income 644 56
Administrative expenses (1,441) (1,437)
Foreign exchange gain/(loss) (64) 28
Cash settled share based payment (410) (90)
Margin call on gold hedge - (435)
Operating profit 4,375 2,010
Net finance cost (7) (36)
Profit before tax 4,368 1,974
Tax expense (1,460) (1,126)
Profit for the period 2,908 848
Other comprehensive income/(loss)
Items that are or may be
reclassified to profit or
loss
Foreign currency translation 73 104
differences for foreign
operations
Total comprehensive income for the 2,981 952
period
Profit attributable to:
Shareholders of the Company 2,338 543
Non-controlling interests 570 305
Profit for the period 2,908 848
Total comprehensive income
attributable
to:
Shareholders of the Company 2,411 647
Non-controlling interests 570 305
Total comprehensive income for the 2,981 952
period
Earnings per share (cents)
Basic 4.3 1.0
Diluted 4.3 1.0
Adjusted earnings per share (cents)
(i)
Basic 5.3 2.7
Condensed Consolidated Statement of Cash Flows (unaudited)
($000s)
3 months ended
March
31
2017 2016
Cash flows from operating activities
Cash generated from operations 2,415 1,933
Net interest paid (1) (36)
Tax paid (635) (148)
Net cash from operating activities 1,779 1,749
Cash flows from investing activities
Acquisition of Property, plant and equipment (3,296)(3,304)
Proceeds from property, plant and equipment - 56
Net cash used in investing activities (3,296)(3,248)
Cash flows from financing activities
Dividends paid (725) (598)
Repayment of term loan facility (375) -
Share issued - 58
Net cash used in financing activities (1,100)(540)
Net decrease in cash and cash equivalents (2,617)(2,039)
Effect of exchange rate fluctuations on cash 4 -
held
Cash and cash equivalents at beginning of 14,335 10,880
the
period
Cash and cash equivalents at end of the 11,722 8,841
period (net of
overdraft)
Consolidated Statements of Financial Position (unaudited
)
($000s) As at March 31
2017 2016
Total non-current 67,399 51,762
assets
Inventories 7,312 6,921
Prepayments 2,072 433
Income tax receivable - 397
Trade and other 4,592 4,568
receivables
Cash and cash 11,852 13,514
equivalents
Total assets 93,227 77,595
Total non-current 22,071 15,090
liabilities
Current portion of 1,483 -
term loan
facility
Trade and other 7,273 6,930
payables
Income taxes payable 697 129
Bank overdraft 130 4,673
Total liabilities 31,654 26,822
Equity attributable to 57,295 48,964
shareholders
Non-controlling 4,278 1,809
interests
Total equity 61,573 50,773
Total equity and 93,227 77,595
liabilities
Leseranfragen:
Caledonia ist ein Bergbau-, Explorations- und Entwicklungsunternehmen mit Schwerpunkt auf das südliche Afrika. Nach Umsetzung des Indigenisierungs-Gesetzes in Simbabwe ist Caledonias hauptsächliches Asset ein 49-%-Anteil an einer laufenden Goldmine in Simbabwe („Blanket“).
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Datum: 11.05.2017 - 08:42 Uhr
Sprache: Deutsch
News-ID 541753
Anzahl Zeichen: 19445
contact information:
Town:
Wien
Kategorie:
Business News
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