Caledonia Mining Corporation (CMCL)

[NYBob]

realest welcome to Caledonia Mining Corporation (CALVF)
good to see you @ CALVF Gold low cost Au-bargain -

Caledonia Mining 2011 Fourth Quarter and Annual Results and Notification of Management Conference Call -


TORONTO, ONTARIO--(Marketwire - March 30, 2012) -

Caledonia Mining Corporation -
(the "Company") (TSX:CAL)(OTCQX:CALVF)(AIM:CMCL) is pleased
to announce its operating and financial results for
the fourth quarter 2011 ("Q4" or the "Quarter") and
the twelve months to December 31, 2011,
which are reported below in Canadian dollars unless
otherwise indicated.

Operational Highlights for the Blanket Mine in Zimbabwe -

Gold produced in Q4 was 10,533oz, an increase of 8.1% on
the 9,743oz produced in Q3 2011 (the "preceding quarter") and
a 69% increase on the 6,227oz produced in Q4 of 2010
(the "comparative quarter"). This was the seventh consecutive
quarterly increase in production.

Total 2011 gold production -
increased by 102% to 35,826oz, (2010: 17,707oz).

Cash operating costs in Q4 substantially reduced to
US$521 per ounce of gold produced
compared to US$583 in the preceding quarter and US$791 in
the comparative quarter.
Cash costs for the full year were
US$581 per ounce compared to US$751 in 2010.

http://tmx.quotemedia.com/article.php?newsid=49900732&qm_symbol=CAL

Financial Highlights

Turnover for the year increased to
$55,705,000 from $22,388,000 in 2010.

Gross profit for the year
increased by 358% to $29,115,000,
(2010: $6,360,000).

Net profit after income taxes for 2011 was
$12,130,000 compared to $1,455,000 in 2010.
The 2011 net profit includes an impairment of $3,884,000 in
respect of the Rooipoort PGE asset because, despite the timely
application for the renewal of the prospecting rights, no
rights have been issued.

Adjusted basic earnings per share for 2011
(excluding the Rooipoort impairment and foreign exchange
profit) was
3.14 cents per share - a fourteen-fold increase on 2010.

Cash and cash equivalents at December 31, 2011 of
$9,686,000 compared to $6,847,000 at September 30, 2011
and $1,145,000 at December 31, 2010.

Cash flow from operations in 2011 before capital investment was
$17,428,000 (2010: $6,611,000).

During Q4 Blanket made payments in respect of direct and
indirect taxes, royalties, licence fees, levies and other
payments to the Government of Zimbabwe totalling US$5,024,000
compared to US$3,847,000 in the preceding quarter, and
US$761,000 in the comparative quarter. The total of such
payments in 2011 was $13,614,000 (2010: $2,236,000).

Other Highlights

During 2011 Caledonia carried out a 5-hole diamond drilling
programme on its wholly owned Nama copper/cobalt property in
northern Zambia.

On March 12, 2012 Caledonia announced the summary of the
results of this 2011 exploration programme which has identified
a new mineralised zone with a weighted
average copper grade of
0.47%, a weighted average thickness of 41 metres and
at a depth of 280 to 450 metres.

A sufficiently large resource at shallow depth could provide
the basis for a future open-pit mining operation.

A further exploration programme has now commenced comprising 8,400 metres of drilling.

On February 20, 2012, Caledonia announced it had signed a
Memorandum of Understanding with the Minister of Youth,
Development, Indigenisation and Empowerment of the Government
of Zimbabwe pursuant to which Caledonia has agreed that
Indigenous Zimbabweans will acquire an effective 51% ownership
interest of the Blanket Mine for a paid transactional value of
US$30.09 million.

Commenting on Caledonia's performance,
Stefan Hayden, President and CEO, said:
"I am delighted to report that the fourth quarter of
2011 was the culmination of a highly successful year
for Caledonia, during which gold production at
the Blanket Mine in Zimbabwe more than doubled.
Production has now increased in each of the last seven
quarters.

In the fourth quarter of 2011 10,533 ounces of gold were
produced, which exceeded our quarterly production target of
10,000 ounces.

In addition, the cash cost of production was significantly
reduced for the year as a whole to
US$581/oz, compared to US$751/oz in 2010.

In the fourth quarter alone, the cash cost of production
was further lowered to
US$521/oz.

This reduction, which is in line with our earlier guidance,
was due to improved operating efficiency and the benefits
of economies of scale.
I believe that Blanket Mine is now one of
the most efficient and lowest cost gold producers in Africa.

In February 2012, Caledonia signed a MoU with the Government of
Zimbabwe regarding the indigenisation of the Blanket Mine.
We are working hard on the various transactions envisaged in
this MoU which we hope will be implemented during the second
quarter of 2012.

At the Caledonia level, the strong operating performance from
Blanket was diluted by the cost of extracting dividends from
Zimbabwe.

Elsewhere, at the Nama base metals project in Zambia, the
2011 exploration programme identified an exciting new
copper-bearing mineralised zone.
Further exploration on the identified mineralised zone
has commenced.
The costs of these drilling programmes will be
fully funded from current cash resources.

Looking forward, once indigenisation has been implemented,
Blanket will be financially and strategically well-positioned
to progress its exploration and development projects. Depending
on the outcome of these projects,
Blanket may, in due course,
be able to increase production above
40,000 ounces of gold per annum.
The Blanket crushing and metallurgical plant has surplus
capacity and any incremental ore could be treated without any
requirement for new investment.
I am also hopeful that the further exploration work at
Nama will indicate the potential
existence of a significant copper deposit."

The full Report & Accounts, including the notes and Management
Discussion and Analysis, for the year ended 31 December 2011
will be posted to holders of Caledonia's AIM securities during
the week commencing 2 April 2012 and are available from the
Company's website
http://www.caledoniamining.com and from SEDAR."

Canada Toll Free number* [phone]

UK Toll Free number* 0808 109 0700

USA Toll Free number* [phone]

Standard International Access number [phone]

*If you are calling from a mobile phone your provider may charge you when connected to the toll-free numbers.

Further information regarding Caledonia's exploration activities and operations along with its latest financials and Management Discussion and Analysis may be found at www.caledoniamining.com.

Consolidated Statement of Comprehensive Income
( In thousands of Canadian dollars except per share amounts)
For the 3 months ended Dec 31 For the 12 months ended Dec 31
2011 2010 2011 2010
$ $ $ $
Revenue 15,972 7,418 55,705 22,388
Royalty (723 ) (310 ) (2,514 ) (825 )
Production costs (5,233 ) (2,948 ) (21,093 ) (12,617 )
Depreciation (1,004 ) (815 ) (2,983 ) (2,586 )
Gross profit 9,012 3,345 29,115 6,360
Administrative expenses (1,418 ) (982 ) (3,677 ) (2,807 )
Share-based payment expense - (354 ) (1,101 ) (354 )
Foreign exchange gain 143 132 303 359
Impairment (3,884 ) - (3,884 ) -
Other income/(expense) (2 ) (884 ) - (1,064 )
Results from operating activities 3,851 1,257 20,756 2,494
Net finance income/(expense) 28 (19 ) (162 ) 3
Profit before income tax 3,879 1,238 20,594 2,497
Income tax expense (2,510 ) (1,040 ) (8,464 ) (1,042 )
Profit for the year 1,369 198 12,130 1,455
Other comprehensive (loss)/income
Revaluation of investments to fair value - (45 ) - (45 )
Foreign currency translation differences for foreign operations (812 ) (1,145 ) 265 (1,404 )
Other comprehensive (loss)/income for the period, net of income tax (812 ) (1,190 ) 265 (1,449 )
Total comprehensive income for the period 557 (992 ) 12,395 6
Earnings per share (cents)
Basic 0.27 0.04 2.42 0.29
Diluted 0.25 0.04 2.38 0.29
Adjusted earnings per share (cents) (1)
Basic 1.02 0.04 3.14 0.22
Diluted 0.94 0.04 3.08 0.22
(1) Adjusted earnings per share ("EPS")is a non-IFRS measure which aims to reflect Caledonia's ordinary trading performance. The adjusted EPS calculation for 2011 excludes the impairment and the foreign exchange profit, both of which are included in the calculation of EPS under IFRS.
Consolidated Statement of Cash Flows
(In thousands of Canadian dollars)
For the 12 months ended Dec 31
2011 2010
$ $
Cash flows from operating activities
Profit for the year 12,130 1,455
Adjustments for:
Tax paid (8,005 ) (1 )
Adj. to reconcile net cash from operations 16,648 4,210
Changes in non-cash working capital (3,183 ) 950
Net interest paid (162 ) (3 )
Cash flows provided from operations 17,428 6,611
Cash flows from investing activities
Property, plant and equipment additions (8,528 ) (7,304 )
Proceeds on sale of investment - 51
Net cash used in investing activities (8,528 ) (7,253 )
Cash flows from financing activities
Bank overdraft increase/(decrease) (317 ) 159
Proceeds from the issue of share capital 38 -
Net cash from (used in) financing activities (279 ) 159
Net increase/(decrease) in cash and cash equivalents 8,621 (483 )
Cash and cash equivalents at beginning of the year 1,145 1,622
Effect of exchange rate fluctuations on cash held (80 ) 6
Cash and cash equivalents at year end 9,686 1,145
Consolidated Statements of Financial Position
(In thousands of Canadian dollars) As at Dec 31, Dec 31,
2011 2010
$ $
Total non-current assets 34,248 31,983
Inventories 4,482 2,624
Prepayments 334 93
Trade and other receivables 3,652 2,314
Cash and cash equivalents 9,686 1,145
Total assets 52,402 38,159
Total non-current liabilities 7,822 7,050
Trade and other payables 3,841 3,882
Income tax liabilities 295 -
Bank overdraft 430 747
Total liabilities 12,388 11,679
Total equity 40,014 26,480
Total equity and liabilities 52,402 38,159
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