Caledonia Mining Corporation Plc: Results for the quarter ended 31 March 2019

(firmenpresse) -
Caledonia Mining Corporation Plc: Results for the quarter ended 31 March 2019

St Helier, 14 May 2019 - Caledonia Mining Corporation Plc (Caledonia or the Company - https://www.commodity-tv.net/c/search_adv/?v=298787) announces its operating and financial results for the first quarter of 2019 (Q1 or the Quarter).

Gold production in the Quarter was 11,948 ounces, approximately 8 per cent below the first quarter of 2018 (the comparable quarter or Q1 2018). Production was adversely affected by lower grade, although this was anticipated as part of the mine plan.

Consolidated operating profit before tax of $12.3m for the Quarter was 105 per cent higher than Q1 2018 although this increase was entirely due to exceptional gains of $3.3 million on foreign exchange following the devaluation of the domestic Zimbabwean currency and a profit on the sale of a subsidiary of $5.4m.

Attributable profit after tax was also substantially higher than the comparable quarter in 2018 at $9.3m again due to exceptional items which outweighed lower gross profit. Foreign exchange gains and profits arising on disposal are excluded from Caledonias adjusted earnings per share of 23 cents which were 44 per cent lower than the comparable quarter, largely due to reduced production and higher on-mine costs.

Operating cash flows for the Quarter were $6.3 million (Q1 2018; $7.0 million) and the Companys balance sheet remains strong with net cash of $9.7 million as at 31 March 2019. Amounts stated below are expressed in thousands of US Dollars, unless otherwise stated or the context requires otherwise.

Q1 201Q1 201% Comment
8 9 Change

Gold 12,92411,948-7.6% Lower gold production was mainly
produced due to lower grade, which was
(oz) in-line with the mine
plan.
The grade dilution which was

experienced in previous quarters
has largely been addressed.
Production was less than planned
due mainly to lower than planned
tonnage

On-mine 687 794 15.6% On-mine costs increased due to
cost per Blankets high fixed costs, which
ounce has an adverse effect at low
($/oz) production levels. Labour rates
Non-IFRS and the costs and consumption
measures rates for certain consumables
were also higher, but were as
such as On- expected
m
ine cost
per
ounce,
A
ISC and
average
realised
gold
price are
used
throughout
this

announcement
. Refer to
Section 10
of

the
Quarters
MD&A for a
discussion
of
non-IFRS
measures
.

All-in 832 943 13.3% AISC increased due to the higher
sustaining on-mine cost per ounce the effect
cost of which was partially offset by
($/oz) lower sustaining capital
(AISC) investment and lower
1 administrative expenses


Average 1,312 1,284 -2.1% The average realised price of gold
realised reflects the prevailing gold
gold price price received: revenues from the
($/oz export credit incentive (ECI)
)1 and gold support

price are accounted for as other
income


Gross 6,223 4,284 -31.2% Gross profit was lower due to a
profit reduction in the number of ounces
sold and increased on-mine cost
Gross per ounce
profit is
after
deducting
royalties,
production
costs and
depreciatio
n but
before
administrat
ive
expenses
, other
income,
interest
and
finance
charges
and
taxation.


Net profit 3,154 9,318 195.4% Net profit attributable to
attributabl shareholders increased due to
e to foreign exchange gains and the
shareholder profit on disposal of a
s subsidiary, the combined effect
of which outweighed lower gross
profit


Adjusted 40.8 23.0 -43.6% Adjusted basic earnings per share
basic excludes deferred tax, foreign
earnings exchange gains and the profit on
per share disposal of a
(EPS) subsidiary
Adjusted
EPS is a
non-IFRS
measure
which aims
to reflect
Caledonias
ordinary
trading
performance
. Refer to
Section 10
of

the
Quarters
MD&A for a
discussion
of
non-IFRS
measures
.

(cents)
Net cash 13,3809,742 -27.2% Net cash remains strong
and cash
equivalents


Cash from 7,045 6,275 -10.9% Cash from operating activities
operating remains robust and exceeded
activities capital investment in the Quarter


Commenting on the results, Steve Curtis, Caledonias Chief Executive Officer said:

Notwithstanding the production difficulties experienced as a result of lower than expected production tonnage, unreliable electricity supply and lower mine grade, cash generation for the quarter was solid at $6.3 million - sufficient to support both capital investment in the Central Shaft project of $5.1 million and Caledonias regular quarterly dividend as well as maintain a healthy balance sheet with net cash of $9.7m at the end of March.

Work on sinking the Central Shaft remains on track. I expect shaft sinking to be completed in the middle of this year after which a further 12 months will be needed to equip the shaft before it is commissioned in mid-2020 and we can begin to increase production to our target of 80,000 ounces per annum by 2022. This production increase will contribute significantly to reducing operating costs through economies of scale and we look forward to further increasing cash flows and earnings as the shaft is commissioned.

We maintain our full year production guidance of 53,000 - 56,000 ounces for 2019. I look forward to an improved cost performance in the remaining quarters of the year as we anticipate that the beneficial effects of improved production will be felt in the subsequent quarters of 2019.

The early part of the Quarter was made more challenging by some significant macroeconomic disruptions. In particular, the continuation of the currency peg between domestic currency and the US dollar caused severe hardship to our employees in Zimbabwe due to their reduced purchasing power which had repercussions for employee morale. The removal of the currency peg in late February resulted in a devaluation of the local currency and allowed management to take steps to remediate the situation of our employees. This, in conjunction with other measures to address operational issues, has resulted in improved performance: I am pleased to report that production in April was almost exactly as planned and we are confident that production will improve in the remainder of 2019.

The devaluation did however have a one-off positive financial impact on our results with a foreign exchange gain of $3.3 million arising on the revaluation of assets and liabilities that are denominated in local currency. Looking forward, provided the exchange rate which is used to calculate Blankets local currency denominated gold receipts recognises economic fundamentals, management is optimistic that current monetary policy may create a more stable economic environment.

Unit costs in the Quarter, although higher than the comparable quarter of 2018, were largely as expected. Blankets relatively high fixed costs component makes our business particularly sensitive to production volumes. On-mine cash costs per ounce of $794 and AISC of $943 were 15.6 per cent and 13.3 per cent higher respectively than the comparable quarter in 2018 although in line with budget.

Operating profit was boosted by exceptional one-off gains on the sale of Eersteling (a South African gold mine which has been held on care and maintenance for many years) and the foreign exchange gain arising on the devaluation of the domestic currency.

I am particularly pleased that we have maintained a safe working environment during what was clearly a difficult time for all our Zimbabwe based employees. I join with my fellow directors in expressing our sincere gratitude to all our management and staff for their contribution to this achievement.

Notwithstanding the challenges experienced in the Quarter, we remain encouraged by the overall direction of policy development which we believe will result in improved operating conditions and a better investment climate in Zimbabwe. The most recent positive development in this regard is the introduction of a gold support price of $1,368 per ounce, a premium above the prevailing spot price in order to incentivize domestic gold production. On the exploration front, we are also particularly encouraged by Zimbabwes geological prospectivity and we continue to evaluate potential investment opportunities.


For further information please contact:

Caledonia Mining Corporation Plc
Mark Learmonth
Tel: +44 1534 679 802
Maurice Mason
Tel: +44 759 078 1139

WH Ireland
Adrian Hadden/Jessica Cave/James Sinclair Ford
Tel: +44 20 7220 1751

Blytheweigh
Tim Blythe/Camilla Horsfall/Megan Ray
Tel: +44 207 138 3204

Swiss Resource Capital AG
Jochen Staiger
www.resource-capital.ch
info(at)resource-capital.ch

Condensed Unaudited Consolidated Statement of Profit or Loss and
Other Comprehensive
Income

($000s)
3 months ended
March
31

2019 2018


$ $


Revenue 15,920 18,059
Royalty (819) (904)
Production costs (9,769) (10,010)
Depreciation (1,048) (922)
Gross profit 4,284 6,223
Net other income 1,200 1,381
Administrative expenses (1,396) (1,542)
Profit on sale of subsidiary 5,409 -
Foreign exchange gain 3,280 71
Equity-settled share-based expense - (14)
Cash-settled share-based expense (361) (114)
Cost of gold hedge (130) -
Operating profit 12,286 6,005
Net finance cost (48) (16)
Profit before tax 12,238 5,989
Tax expense (1,519) (2,110)
Profit for the period 10,719 3,879

Other comprehensive income
Items that are or may be reclassified to
profit or
loss

Foreign currency translation differences (144) 208
for foreign
operations

Reclassification of accumulated exchange (2,109) -
differences on the sale of
subsidiary

Total comprehensive income for the period 8,466 4,087

Profit attributable to:
Shareholders of the Company 9,318 3,154
Non-controlling interests 1,401 725
Profit for the period 10,719 3,879

Total comprehensive income attributable
to:

Shareholders of the Company 7,065 3,362
Non-controlling interests 1,401 725
Total comprehensive income for the period 8,466 4,087

Earnings per share (cents)
Basic 88.6 29.3
Diluted 88.5 29.2
Adjusted earnings per share (cents) (i)
Basic 23.0 40.8

Consolidated Statements of Financial Position
(unaudited)

($000s) As at March 31Dec 31
2019 2018
Total non-current assets 102,625 97,525
Inventories 9,068 9,427
Prepayments 1,077 866
Trade and other receivables 5,456 6,392
Gold hedge receivable 194 -
Cash and cash equivalents 9,742 11,187
Assets held for sale - 296
Total assets 128,162 125,693
Total non-current liabilities 29,694 34,687
Trade and other payables 9,700 10,051
Income tax payable 1,205 1,538
Cash-settled share-based 134 -
payments - short term
portion

Liabilities associated with - 609
assets held for
sale

Total liabilities 40,733 46,885
Total equity 87,429 78,808
Total equity and liabilities 128,162 125,693

Condensed Consolidated Statement of Cash Flows (unaudited)
($000s)
3 months ended March 31
2019 2018
Cash flows from operating activities
Cash generated by operations 6,633 7,684
Net interest paid (112) (38)
Tax paid (246) (601)
Net cash from operating activities 6,275 7,045

Cash flows from investing activities
Acquisition of property, plant and (5,140) (5,158)
equipment


Proceeds from disposal of subsidiary 1,000 -
Net cash used in investing activities (4,140) (5,158)

Cash flows from financing activities
Dividends paid (738) (899)
Repayment of term loan facility - (375)
Net cash used in financing activities (738) (1,274)

Net increase in cash and cash equivalents 1,397 613
Effect of exchange rate fluctuations on (2,842) 11
cash
held

Cash and cash equivalents at beginning 11,187 12,756
of the
period

Cash and cash equivalents at end of the 9,742 13,380
period (net of
overdraft)


Note: This announcement contains inside information which is disclosed in accordance with 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 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.

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 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. 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.

Weitere Infos zu dieser Pressemeldung:

Themen in dieser Pressemitteilung:


Unternehmensinformation / Kurzprofil:
Leseranfragen:
PresseKontakt / Agentur:
Bereitgestellt von Benutzer: irw
Datum: 14.05.2019 - 13:43 Uhr
Sprache: Deutsch
News-ID 1549037
Anzahl Zeichen: 21728

contact information:
Contact person:
Town:

Wien

Phone:

Kategorie:

Business News

Typ of Press Release:
type of sending:
Date of sending:
Anmerkungen:


Diese Pressemitteilung wurde bisher 381 mal aufgerufen.


Die Pressemitteilung mit dem Titel:
"Caledonia Mining Corporation Plc: Results for the quarter ended 31 March 2019

"
steht unter der journalistisch-redaktionellen Verantwortung von

Caledonia Mining Corporation (Nachricht senden)

Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).

Alle Meldungen von Caledonia Mining Corporation