Caledonia Mining Corporation
Plc
Trading update for the year
ended December 31, 2023
(NYSE AMERICAN: CMCL;
AIM: CMCL; VFEX: CMCL)
St
Helier, March 4, 2024 -
Caledonia Mining Corporation Plc ("Caledonia" or
"the Company") provides the following trading update for the year
ended December 31, 2023.
Caledonia reports that Blanket Mine
has continued to perform well since the end of the quarter ended
September 30, 2023 with full year production for 2023 of 75,416
ounces. As a result, the Company expects to report revenue for the
full year in line with market expectations.
However, increased operating costs
for 2023 and several significant one-off, non-operating costs in
the final quarter of the year have resulted in reduced profit for
the full year. The increase in operating costs comprises of higher
than expected overtime payments and power costs at Blanket Mine. In
relation to non-operating costs, general and administrative costs
rose with global inflation and these also included higher than
expected staff termination costs. The Company also
encountered higher financing costs, including hedging, interest,
and foreign exchange losses and a one-off impairment charge in
relation to a VAT refund claim at the Blanket Mine solar
project.
As a result of the above, the
Company now expects to report an adjusted profit before tax for the
year ended December 31, 2023 materially below market
expectations.
Further information on the increase
in costs will be provided in the operating and financial results
for the quarter ended December, 31 2023.
Reassuringly, a significant
proportion of these cost increases are not expected to be carried
through into 2024. Specifically, costs associated with Bilboes are
now reduced to care and maintenance only and the project was cash
neutral in the fourth quarter of 2023. Production and costs at
Blanket in 2024 to-date are also within expectations of full year
guidance, and the Company is introducing measures aimed at reducing
electricity costs over the medium term.
At December 31, 2023, the Company
had cash on hand of $6.7 million and overdrafts and term loans of
$17.7 million.
Notice of Results
The Company announces that its
operating and financial results for the quarter ended December 31,
2023 will be published on or before March 28, 2024.
Mark Learmonth, Chief Executive Officer,
commented:
"It is regrettable that, at a group level, we
have been adversely affected by a series of higher-than-expected
costs in the second half of 2023 which have had a negative effect
on the full year profitability. The performance of Blanket Mine
remains strong and, notwithstanding some unforeseen overtime and
power cost issues in the second half, has met guidance and produced
a robust performance for the second half of 2023.
"A
number of the other cost items are not anticipated to be recurring,
whereas others have arisen from our decisions to invest in the
business, most notably around personnel and advancing the Bilboes
sulphide project. I am confident that many of these will not recur
in 2024 which has started positively and I look forward to the
future with optimism as we pursue our goal of becoming a
multi-asset production company."
Caledonia Mining Corporation Plc
Mark Learmonth
Camilla Horsfall
|
Tel: +44 1534 679 802
Tel: +44 7817 841793
|
Cavendish Capital Markets Limited (Nomad and Joint
Broker)
Adrian Hadden
Pearl Kellie
|
Tel: +44 207
397 1965
Tel: +44 131 220 9775
|
Liberum Capital Limited (Joint Broker)
Scott Mathieson/ Matt Hogg
|
Tel: +44 20 3100 2000
|
Camarco, Financial PR (UK)
Gordon Poole
Julia Tilley
Elfie Kent
|
Tel: +44 20 3757 4980
|
3PPB (Financial PR, North America)
Patrick Chidley
Paul Durham
|
Tel: +1 917 991 7701
Tel: +1 203 940 2538
|
Curate Public Relations (Zimbabwe)
Debra Tatenda
|
Tel: +263 77802131
|
IH
Securities (Private) Limited (VFEX Sponsor -
Zimbabwe)
Lloyd Mlotshwa
|
Tel: +263 (242) 745
119/33/39
|
Note: The information contained
within this announcement is deemed by the Company to constitute
inside information under the Market Abuse Regulation (EU) No.
596/2014 ("MAR") as it forms part of UK
domestic law by virtue of the European Union (Withdrawal) Act
2018 and is disclosed in accordance with the Company's obligations
under Article 17 of MAR.
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", "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: our expectations in respect of future costs and
how to control them, the publication of annual financial results,
the performance of our investments and achieving our production
guidance for the year. The forward-looking information
contained in this news release 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: the establishment of estimated resources and
reserves, the grade and recovery of minerals which are mined
varying from estimates, success of future exploration and drilling
programs, reliability of drilling, sampling and assay data, the
representativeness of mineralization being accurate, success of
planned metallurgical test-work, capital availability and accuracy
of estimated operating costs, obtaining required governmental,
environmental or other project approvals, inflation, changes in
exchange rates, fluctuations in commodity prices, delays in the
development of projects, the assessment of the existing capital
intensity of the Bilboes gold project and Caledonia's experience of
project development in Zimbabwe 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 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. 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.
This news release is not an offer of the shares of Caledonia
for sale in the United States or elsewhere. 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 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.