Caledonia Mining Corporation Plc (Zimbabwe) – Q3 2022 Trading update

By Published On: November 15th, 2022Categories: Corporate announcement, Earnings
Caledonia Mining Corporation Plc 2022 Interim Results For The Third Quarter

Caledonia Mining Corporation Plc (CMC.vx) Q32022 Interim Report

November 10, 2022: Caledonia Mining Corporation Plc (“Caledonia” or the “Company”) announces its operating and financial results for the quarter and the nine months ended September 30, 2022 (the “Quarter” and “Nine Months” respectively). Further information on the financial and operating results for the Quarter and Nine Months 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 which have been filed on SEDAR.

Financial Highlights

• Gross revenues in the Nine Months of $107.9 million, a 21.0 per cent increase on the $89.2 million achieved in the first nine months of 2021.
• Gross profit in the Nine Months of $50.5 million, a 26.1 per cent increase on the $40.0 million achieved in the first nine months of 2021.
• EBITDA in the Quarter (excluding asset impairments, depreciation, and net foreign exchange gains) of $16.9 million, an 11.8 per cent increase on the $15.1 million in the third quarter of 2021 (“Q3 2021”). This represents EBITDA (excluding asset impairments, depreciation, and net foreign exchange gains) for the Nine Months of $52.9 million (nine months to September 30, 2021: $35.0 million).
• On-mine cost per ounce for the Quarter of $734 (Q3 2021: $695 per ounce).
• All-in sustaining cost (“AISC”) per ounce for the Quarter of $944 (Q3 2021: $870 per ounce). The 8.5 per cent increase compared to Q3 2021 is due to higher on-mine cost per ounce and higher administrative costs.
• Basic IFRS earnings per share (“EPS”) for the Quarter of 66.2 cents (Q3 2021: 57.1 cents).
• Adjusted EPS for the Quarter of 60.7 cents (Q3 2021: 68.9 cents).
• Net cash from operating activities in the Quarter of $8.9 million (Q3 2021: $7.1 million).
• Net cash and cash equivalents at the end of the Quarter of $6.2 million (Q3 2021: $13.0 million).
• Total dividend paid in the Quarter of 14 cents per share paid in July 2022; a further dividend at the same rate of 14 cents per share was paid in October 2022.

Operating Highlights

• 21,120 ounces of gold were produced in the Quarter, 11.4 per cent higher than the 18,965 ounces produced in Q3 2021 and a new quarterly production record.
• 59,726 ounces were produced in the Nine Months, 22.2 per cent higher than the 48,872 ounces produced in the first nine months of 2021.

Other highlights

Transaction to acquire the Bilboes gold project
• On July 21, 2022, Caledonia announced that it had signed an agreement to purchase Bilboes Gold Limited, the parent company which owns, through its Zimbabwe subsidiary, the Bilboes gold project in Zimbabwe (“Bilboes” or the “Project”). Subject to satisfaction of the conditions to completion and to customary adjustments to the purchase price to account for any extraordinary liabilities incurred before completion, the total consideration for the acquisition will be 5,123,044 Caledonia shares, representing approximately 28.5 per cent of Caledonia’s fully diluted equity, and a 1 per cent net smelter royalty (“NSR”) on the Project’s revenues.
• The Project has NI43-101 compliant measured and indicated mineral resources of 2.56 million ounces of gold at a grade of 2.26 g/t and inferred mineral resources of 576,672 ounces of gold at a grade of 1.89 g/t1. This includes proven and probable mineral reserves of 1.96 million ounces of gold at a grade of 2.29 g/t.
• The feasibility study which has been prepared by the vendors indicates the potential for an open-pit gold mine producing an average of 168,000 ounces per year over a 10-year life of mine.
Caledonia will prepare a feasibility study to identify the most judicious way to commercialise the Project (with regard to the availability of funding on acceptable terms).
• Caledonia is making progress towards satisfying the outstanding conditions to complete the transaction: it has received certain approvals from the Reserve Bank of Zimbabwe, and continues to engage with the Competition and Tariff Commission, the Ministry of Finance, the Ministry of Energy and Fidelity Printers and Refiners (Private) Limited regarding further outstanding approvals.


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