Caledonia Mining Corporation Plc: Results for the quarter ended September 30, 2020 (NYSE AMERICAN: CMCL; AIM: CMCL)
(PresseBox) - Caledonia Mining Corporation Plc (?Caledonia? or the ?Company? - https://www.commodity-tv.com/ondemand/companies/profil/caledonia-mining-corporation-plc/) announces its operating and financial results for the quarter and the nine months ended September 30, 2020 (the ?Quarter? and ?Nine Months ? respectively). &A?) and the unaudited financial statements which are available on the Company?s website and have been filed on SEDAR.
Financial Highlights for the Quarter
Gross revenues of $25.4 million, a 27 per cent increase on the $20.0 million achieved in the third quarter of 2019 (?Q3 2019?).
Gross profit[1] of $12.5 million, a 47 per cent increase on the $8.5 million in Q3 2019 at a gross margin of 49 per cent (Q3 2019, 43 per cent).
EBITDA[2] (excluding net foreign exchange gains and share based payments) of $11.2 million, a 34 per cent increase on the $8.3 million in Q3 2019 at a margin of 44 per cent (Q3 2019, 42 per cent).
The on-mine cost per ounce[3] increased from $686 in Q3 2019 to $758 due to costs associated with COVID-19, a share-based payment expense and increased use of the diesel generators.
The all-in sustaining cost per ounce3 increased from $872 in Q3 2019 to $1,119 due to a higher insurance premium and an increased share-based payment expense.
Basic IFRS earnings per share (?EPS?) of 36.6 cents (Q3 2019, 63.4 cents). IFRS earnings for the Quarter were adversely affected by a lower foreign exchange gain and higher taxation.
Adjusted EPS3 of 34.1 cents (Q3 2019, 15.8 cents).
Net cash from operating activities of $5.3 million (Q3 2019, $4.9 million).
Net cash and cash equivalents of $21.6 million (December 31, 2019, $8.9 million).
Total dividend paid in the Quarter of 8.5 cents per share; a further dividend at the increased rate of 10 cents per share was paid in October.
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.
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 8.5 cents per share and the October dividend was further increased to 10 cents per share following the continued strong financial and operating performance.
The cumulative increase in the dividend per share since January 2020 is 45 per cent.
Further dividend increases will depend on the balance between delivering returns to shareholders and pursuing the significant growth opportunities within Zimbabwe.
Steve Curtis, Chief Executive Officer, commented:
ntinued into October. We have therefore increased our gold production guidance for 2020 from a range of 53,000 to 56,000 ounces to a range of 55,000 to 58,000 ounces.
?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 all-in sustaining cost per ounce for the Quarter was $1,119 per ounce ? an increase of 28 per cent compared to Q3 2019.
?Notwithstanding these and other factors, we remain on track to achieve our cost guidance for 2020 of between $693 and $767 per ounce for on-mine costs and between $951 and $1,033 per ounce for all-in sustaining costs.
?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 $7.4 million in the Quarter compared to $4.9 million in Q3 2019.
?During the Quarter we raised $13 million (before expenses) from the issue of equity, and the proceeds will be used to construct the 12 MW solar plant.
?Caledonia ended the Quarter with net cash and cash equivalents of $21.6 million (excluding $1 million of a gold ETF which we purchased in the Quarter to protect cash in South Africa against devaluation of the South African Rand).
?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.
?Interruptions to the supply of electricity from the grid have continued, but Blanket manages these using its increased suite of diesel generators.
?The coronavirus pandemic had no appreciable effect on Blanket?s production in the Quarter and a minor effect on costs. s no change to the production target of approximately 80,000 ounces of gold from 2022 onwards[4].
?In light of the improved performance and the brighter outlook for 2020 and beyond, Caledonia increased its quarterly dividend from 6.875 cents per share to 7.5 cents per share in January 2020.
[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.&A for a discussion of non-IFRS measures.
[4] Mr Dana Roets (B Eng (Min.), MBA, Pr.Eng., FSAIMM, AMMSA), Chief Operating Officer, is the Company''s qualified person as defined by Canada''s National Instrument 43-101 and has approved any scientific or technical information contained in this news release.
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.her 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 furtherata, 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.thiness 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.
This news release is not an offer of the common shares of Caledonia for sale in the United States. This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the common shares of Caledonia, in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such province, state or jurisdiction.
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Datum: 12.11.2020 - 02:38 Uhr
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