Thursday, August 15, 2013 4:43:33 PM
Caledonia Mining Corporation: Q2 and First Half Year 2013 Results
and Confirmation of Management Conference Call -
http://www.caledoniamining.com/present.php
TORONTO, ONTARIO--(Marketwired - Aug. 13, 2013) -
Caledonia Mining Corporation
("Caledonia" or the "Company") (TSX:CAL)(OTCQX:CALVF)(AIM:CMCL) is
pleased to announce its operating and financial results for the
second quarter ("Q2" or the "Quarter") and the first half ("H1" or
"First Half") of 2013.
All results are reported in Canadian dollars
unless otherwise indicated. Caledonia owns a 49% interest in the
Blanket Mine in Zimbabwe.
Operational and financial information set out below is on a 100%
basis unless indicated otherwise.
http://www.caledoniamining.com/pdfs/CALPres-08132013.pdf
Operating Highlights -
Blanket Mine, Zimbabwe
Gold produced in Q2 was 11,588 ounces (Q1 2013, 10,472 ounces;
Q2 2012, 11,560 ounces) and was ahead of the planned target of
10,000 ounces.
Gold production in the Quarter increased from the previous quarter
due to the planned increased mine production throughput in response
to the lower gold price.
Gold produced in H1 was 22,060 ounces
(Second half of 2012, 24,739 ounces;
H1 2012, 20,724 ounces).
Gold production for Q3 of 2013 has started well:
production in July 2013 was approximately 4,480 ounces,
35% higher than the planned monthly target of 3,300 ounces.
Management believes that Blanket is on course to produce
approximately 44,000 ounces in 2013 -
10% higher than the previous guidance of 40,000 ounces.
Blanket has adopted the guidance of the World Gold Council in
reporting the costs of gold production.
Blanket's operating cost, all-in sustaining cost and all-in cost per
ounce of gold produced for the quarter, the preceding quarter and
2012 are shown in the table below.
(1) The basis of calculation of these measures is set out in the
Management Discussion and Analysis ("MD&A"), which is available for
download on Caledonia's website and on SEDAR at www.sedar.com.
Blanket: Costs per Ounce of Gold Produced (US$/oz)
Year 2012 Q1 2013 Q2 2013
Operating cost(1) 769 856 689
All-in sustaining cost(1) 955 1,007 956
All-in cost(1) 1,027 1,056 1,211
(1) References herein to "operating cost", "All-in sustaining
cost" and "All-in cost" are performance measures that are not
prepared in accordance with International Financial Reporting
Standards ("IFRS").
Non-IFRS performance measures have no standardized method for
calculating and accordingly are not a reliable way to compare us
against other companies.
Management believes these non-IFRS measures assist investors and
other stakeholders in understanding the economics of gold mining
over the life-cycle of a mine.
Non-IFRS measures should be used along with other performance
measures prepared in accordance with IFRS. Refer to Section 10 of
our MD&A for a discussion of non-IFRS measures, including a
reconciliation of such non-IFRS measures to the IFRS measures we
report.
Blanket's operating cost per ounce in the Quarter was lower than the
preceding quarter and 2012 due to the higher production and stable
input costs.
The all-in sustaining costs per ounce has been broadly stable over
the preceding 18 months, reflecting the generally lower operating
costs per ounce, but higher levels of capital investment.
Blanket's all-in cost includes investments in projects to increase
production.
Financial Highlights
Gold sales during the Quarter were 11,588 ounces at an average sales
price of US$1,368 per ounce of gold.
Gross Profit for the Quarter (i.e. after depreciation and
amortization but before administrative expenses)
was $8.6 million (Q1 2013, $9.0 million;
Q2 2012, $10.1 million).
Net profit after tax for the Quarter attributable to
Caledonia shareholders was $3.0 million (Q1 2013, $4.6 million;
Q2 2012, $5.5 million).
Basic earnings per share attributable to Caledonia shareholders for
the Quarter were 5.8 cents per share,
(Q1 2013, 9.0 cents;
Q2 2012, 11.0 cents).
The earnings per share numbers for the Quarter and all preceding
quarters reflect the one-for-ten share consolidation which took
place during the Quarter.
At June 30, 2013 Caledonia had cash and cash equivalents of
$22.5 million (March 31, $25.2 million;
2013 December 31, 2012 $27.9 million).
The reduction in net cash in the Quarter was due to the payment by
Caledonia of it's a second dividend of $2.5 million in respect of
the profit for 2012 and capital investment of $3.8 million, of
which $2.4 million was at the Blanket Mine and
$1.4 million was at Nama.
Exploration Highlights
The deep level exploration drilling at
the Blanket Mine below 750 metre (m) level has continued.
The first exploration hole into the Blanket No. 4 ore body below
the 750 m level made an intersection with a grade of
3.57 grams per tonne ("g/t") over 4.70 m true width.
A second hole made an intersection of 5.96 g/t over 6.00 m true
width.
Development work continues as planned on the capital projects with
the objective of increasing production in future years.
Exploration at Blanket's satellite projects has continued.
At the GG project, the shaft sinking has reached the target depth of
120 m below surface and further exploration continues to allow for
a better understanding of the geometry of the identified
mineralisation.
At the Mascot project, underground development towards the North
Parallel Zone has commenced on a second level and has identified
mineralisation.
Development towards the South Zone exploration has commenced.
If the gold grades of the exposed mineralized zones prove to be
economic, material from Mascot could be delivered to the main
Blanket plant as early as late 2013.
Mineral resources that are not mineral reserves have no demonstrated
economic viability.
In early July 2013, Caledonia Nama submitted, as required, a report
on preliminary exploration results from
the Nama Copper Project to the Zambian Government.
Other Highlights
On April 12, 2013, the one-for-ten share consolidation was
implemented pursuant to the special resolution passed at
the special meeting of Caledonia shareholders held on
January 24, 2013.
On April 3, 2013, Caledonia announced a dividend in respect of the
year ended December 31, 2012 of $0.005 per pre-consolidated
ordinary share or $0.05 on a post-consolidated basis, which was
paid on April 30, 2013.
This dividend, in conjunction with the dividend paid in February
2013 means that the total dividend payment year to date in
2013 is $0.1 per share on a post-consolidation basis.
Commenting on the Q2 and H1 2013 results, Stefan Hayden,
Caledonia President and Chief Executive Officer said:
"The second quarter of 2013 presented significant challenges as
the gold price suffered an unprecedented fall in April 2013.
In response to the lower gold price, Caledonia, working with
Blanket management, introduced measures to increase mine production
from approximately 1,030 tpd which was achieved in the first
quarter of 2013, to approximately 1,125 tpd in the second quarter
of 2013.
Increased gold production in the second quarter was not achieved by
high-grading the mine:
the average realised grade in Q2 was 3.82 g/t, lower than
the 4.04 g/t achieved in previous quarters and very close to
the average mine grade of 3.84 g/t.
Notwithstanding the higher plant throughput and slightly lower
grade, gold recovery was virtually unchanged in the quarter at
93.2% compared to 93.3% in the previous quarter.
Blanket's metallurgical plant has considerable surplus capacity and
is believed to be one of the most efficient in the industry, which
reflects our recent investments and the skills of Blanket's
management and employees.
The adverse effect of the lower gold price on profitability was also
mitigated somewhat by lower costs.
Blanket's operating costs per ounce and all-in sustaining cost per
ounce (now calculated based on the most recent guidance from the
World Gold Council) were both lower in Q2 of 2013 than in the
preceding quarter at US$689 per ounce and US$956 per ounce
respectively.
Blanket's all-in cost for the quarter of US$1,211per ounce includes
substantial investment at Blanket's on-mine expansion and
development projects, investment at Blanket's satellite projects
and also includes a significant one-time corporate and social
investment.
Supported by the Company's strong cash position and continued cash
generation at the operational level, development and exploration
activity at Blanket has accelerated.
We continue to move towards achieving our targeted increase in
production.
In light of the increased rate of production in Q2 2013, we have
increased our production guidance for 2013 from 40,000 ounces to
approximately 44,000 ounces.
It is hoped that the increased production and continued tight cost
control will mitigate somewhat the adverse effect of the lower gold
price on the Group's profitability.
Over half of Blanket's costs are fixed. If we are able as planned to
increase production moving forward, our average cost per ounce of
gold produced may be able to be reduced somewhat.
Exploration at Blanket below 750 m and at Blanket's satellite
projects continues and we continue to be encouraged by the results
evaluated so far.
Exploration drilling at the Blanket ore body below 750m produced
some good intersections.
Development and exploration work at GG and Mascot continues to
identify mineralisation which warrants further evaluation.
As a low-cost producer with a robust balance sheet, we believe
Caledonia is well-positioned to continue to implement its growth
strategy, notwithstanding the current volatility in the gold
price."
The full Report & Accounts, including the Management Discussion and
Analysis for the quarter ended June 30, 2013 are available from the
Company's website
http://www.caledoniamining.com
and from SEDAR at www.sedar.com.
Management Conference Call
Caledonia management will host a conference call on August 13 at
0900 British Summer Time and a second conference call at 1000
Eastern Standard Time.
Dial-in details are set out below - please note that the dial-in
details have changed from those advised in the press release of
August 6, 2013.
Details for the UK Call at 0900 (BST) August 13, 2013
UK toll-free 0808 237 0030
UK toll-paid +44 20 3139 4830
Participant code (to access the basic audio service) 51596286#
Participant URL to access the on-line presentation for the UK call
https://arkadin-event.webex.com/arkadin-event/onstage/g.php?t=a&d=701062715
Participant logon and pincode to access the on-line presentation for the UK call 641383
Details for the North American Call at 0900 (EDT) August 13, 2013
North American toll-free number 1 866 928 7517
North American toll-paid number 1 718 873 9077
Participant code (to access the basic audio service) 51596286#
Participant URL to access on-line presentation for the North American call
https://arkadin-event.webex.com/arkadin-event/onstage/g.php?t=a&d=702195406
Participant logon and pincode to access the on-line presentation for the North American call 641433
Cautionary Note Concerning Forward-Looking Information
Information and statements contained in this news release that are
not historical facts are "forward-looking information" ---- 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.
Caledonia Mining Corporation
Mark Learmonth
+27 11 447 2499
marklearmonth@caledoniamining.com
http://www.caledoniamining.com
Numis
John Prior / Jamie Loughborough / James Black
+44 20 7260 1000
Newgate Threadneedle
Adam Lloyd
+44 20 7653 9850
WH Ireland
Adrian Hadden / Nick Field
+44 20 7220 1751
CHF Investor Relations
Juliet Heading
+1 416 868 1079 x 239
juliet@chfir.com
http://www.biblebelievers.org.au/monie.htm
God Bless
and Confirmation of Management Conference Call -
http://www.caledoniamining.com/present.php
TORONTO, ONTARIO--(Marketwired - Aug. 13, 2013) -
Caledonia Mining Corporation
("Caledonia" or the "Company") (TSX:CAL)(OTCQX:CALVF)(AIM:CMCL) is
pleased to announce its operating and financial results for the
second quarter ("Q2" or the "Quarter") and the first half ("H1" or
"First Half") of 2013.
All results are reported in Canadian dollars
unless otherwise indicated. Caledonia owns a 49% interest in the
Blanket Mine in Zimbabwe.
Operational and financial information set out below is on a 100%
basis unless indicated otherwise.
http://www.caledoniamining.com/pdfs/CALPres-08132013.pdf
Operating Highlights -
Blanket Mine, Zimbabwe
Gold produced in Q2 was 11,588 ounces (Q1 2013, 10,472 ounces;
Q2 2012, 11,560 ounces) and was ahead of the planned target of
10,000 ounces.
Gold production in the Quarter increased from the previous quarter
due to the planned increased mine production throughput in response
to the lower gold price.
Gold produced in H1 was 22,060 ounces
(Second half of 2012, 24,739 ounces;
H1 2012, 20,724 ounces).
Gold production for Q3 of 2013 has started well:
production in July 2013 was approximately 4,480 ounces,
35% higher than the planned monthly target of 3,300 ounces.
Management believes that Blanket is on course to produce
approximately 44,000 ounces in 2013 -
10% higher than the previous guidance of 40,000 ounces.
Blanket has adopted the guidance of the World Gold Council in
reporting the costs of gold production.
Blanket's operating cost, all-in sustaining cost and all-in cost per
ounce of gold produced for the quarter, the preceding quarter and
2012 are shown in the table below.
(1) The basis of calculation of these measures is set out in the
Management Discussion and Analysis ("MD&A"), which is available for
download on Caledonia's website and on SEDAR at www.sedar.com.
Blanket: Costs per Ounce of Gold Produced (US$/oz)
Year 2012 Q1 2013 Q2 2013
Operating cost(1) 769 856 689
All-in sustaining cost(1) 955 1,007 956
All-in cost(1) 1,027 1,056 1,211
(1) References herein to "operating cost", "All-in sustaining
cost" and "All-in cost" are performance measures that are not
prepared in accordance with International Financial Reporting
Standards ("IFRS").
Non-IFRS performance measures have no standardized method for
calculating and accordingly are not a reliable way to compare us
against other companies.
Management believes these non-IFRS measures assist investors and
other stakeholders in understanding the economics of gold mining
over the life-cycle of a mine.
Non-IFRS measures should be used along with other performance
measures prepared in accordance with IFRS. Refer to Section 10 of
our MD&A for a discussion of non-IFRS measures, including a
reconciliation of such non-IFRS measures to the IFRS measures we
report.
Blanket's operating cost per ounce in the Quarter was lower than the
preceding quarter and 2012 due to the higher production and stable
input costs.
The all-in sustaining costs per ounce has been broadly stable over
the preceding 18 months, reflecting the generally lower operating
costs per ounce, but higher levels of capital investment.
Blanket's all-in cost includes investments in projects to increase
production.
Financial Highlights
Gold sales during the Quarter were 11,588 ounces at an average sales
price of US$1,368 per ounce of gold.
Gross Profit for the Quarter (i.e. after depreciation and
amortization but before administrative expenses)
was $8.6 million (Q1 2013, $9.0 million;
Q2 2012, $10.1 million).
Net profit after tax for the Quarter attributable to
Caledonia shareholders was $3.0 million (Q1 2013, $4.6 million;
Q2 2012, $5.5 million).
Basic earnings per share attributable to Caledonia shareholders for
the Quarter were 5.8 cents per share,
(Q1 2013, 9.0 cents;
Q2 2012, 11.0 cents).
The earnings per share numbers for the Quarter and all preceding
quarters reflect the one-for-ten share consolidation which took
place during the Quarter.
At June 30, 2013 Caledonia had cash and cash equivalents of
$22.5 million (March 31, $25.2 million;
2013 December 31, 2012 $27.9 million).
The reduction in net cash in the Quarter was due to the payment by
Caledonia of it's a second dividend of $2.5 million in respect of
the profit for 2012 and capital investment of $3.8 million, of
which $2.4 million was at the Blanket Mine and
$1.4 million was at Nama.
Exploration Highlights
The deep level exploration drilling at
the Blanket Mine below 750 metre (m) level has continued.
The first exploration hole into the Blanket No. 4 ore body below
the 750 m level made an intersection with a grade of
3.57 grams per tonne ("g/t") over 4.70 m true width.
A second hole made an intersection of 5.96 g/t over 6.00 m true
width.
Development work continues as planned on the capital projects with
the objective of increasing production in future years.
Exploration at Blanket's satellite projects has continued.
At the GG project, the shaft sinking has reached the target depth of
120 m below surface and further exploration continues to allow for
a better understanding of the geometry of the identified
mineralisation.
At the Mascot project, underground development towards the North
Parallel Zone has commenced on a second level and has identified
mineralisation.
Development towards the South Zone exploration has commenced.
If the gold grades of the exposed mineralized zones prove to be
economic, material from Mascot could be delivered to the main
Blanket plant as early as late 2013.
Mineral resources that are not mineral reserves have no demonstrated
economic viability.
In early July 2013, Caledonia Nama submitted, as required, a report
on preliminary exploration results from
the Nama Copper Project to the Zambian Government.
Other Highlights
On April 12, 2013, the one-for-ten share consolidation was
implemented pursuant to the special resolution passed at
the special meeting of Caledonia shareholders held on
January 24, 2013.
On April 3, 2013, Caledonia announced a dividend in respect of the
year ended December 31, 2012 of $0.005 per pre-consolidated
ordinary share or $0.05 on a post-consolidated basis, which was
paid on April 30, 2013.
This dividend, in conjunction with the dividend paid in February
2013 means that the total dividend payment year to date in
2013 is $0.1 per share on a post-consolidation basis.
Commenting on the Q2 and H1 2013 results, Stefan Hayden,
Caledonia President and Chief Executive Officer said:
"The second quarter of 2013 presented significant challenges as
the gold price suffered an unprecedented fall in April 2013.
In response to the lower gold price, Caledonia, working with
Blanket management, introduced measures to increase mine production
from approximately 1,030 tpd which was achieved in the first
quarter of 2013, to approximately 1,125 tpd in the second quarter
of 2013.
Increased gold production in the second quarter was not achieved by
high-grading the mine:
the average realised grade in Q2 was 3.82 g/t, lower than
the 4.04 g/t achieved in previous quarters and very close to
the average mine grade of 3.84 g/t.
Notwithstanding the higher plant throughput and slightly lower
grade, gold recovery was virtually unchanged in the quarter at
93.2% compared to 93.3% in the previous quarter.
Blanket's metallurgical plant has considerable surplus capacity and
is believed to be one of the most efficient in the industry, which
reflects our recent investments and the skills of Blanket's
management and employees.
The adverse effect of the lower gold price on profitability was also
mitigated somewhat by lower costs.
Blanket's operating costs per ounce and all-in sustaining cost per
ounce (now calculated based on the most recent guidance from the
World Gold Council) were both lower in Q2 of 2013 than in the
preceding quarter at US$689 per ounce and US$956 per ounce
respectively.
Blanket's all-in cost for the quarter of US$1,211per ounce includes
substantial investment at Blanket's on-mine expansion and
development projects, investment at Blanket's satellite projects
and also includes a significant one-time corporate and social
investment.
Supported by the Company's strong cash position and continued cash
generation at the operational level, development and exploration
activity at Blanket has accelerated.
We continue to move towards achieving our targeted increase in
production.
In light of the increased rate of production in Q2 2013, we have
increased our production guidance for 2013 from 40,000 ounces to
approximately 44,000 ounces.
It is hoped that the increased production and continued tight cost
control will mitigate somewhat the adverse effect of the lower gold
price on the Group's profitability.
Over half of Blanket's costs are fixed. If we are able as planned to
increase production moving forward, our average cost per ounce of
gold produced may be able to be reduced somewhat.
Exploration at Blanket below 750 m and at Blanket's satellite
projects continues and we continue to be encouraged by the results
evaluated so far.
Exploration drilling at the Blanket ore body below 750m produced
some good intersections.
Development and exploration work at GG and Mascot continues to
identify mineralisation which warrants further evaluation.
As a low-cost producer with a robust balance sheet, we believe
Caledonia is well-positioned to continue to implement its growth
strategy, notwithstanding the current volatility in the gold
price."
The full Report & Accounts, including the Management Discussion and
Analysis for the quarter ended June 30, 2013 are available from the
Company's website
http://www.caledoniamining.com
and from SEDAR at www.sedar.com.
Management Conference Call
Caledonia management will host a conference call on August 13 at
0900 British Summer Time and a second conference call at 1000
Eastern Standard Time.
Dial-in details are set out below - please note that the dial-in
details have changed from those advised in the press release of
August 6, 2013.
Details for the UK Call at 0900 (BST) August 13, 2013
UK toll-free 0808 237 0030
UK toll-paid +44 20 3139 4830
Participant code (to access the basic audio service) 51596286#
Participant URL to access the on-line presentation for the UK call
https://arkadin-event.webex.com/arkadin-event/onstage/g.php?t=a&d=701062715
Participant logon and pincode to access the on-line presentation for the UK call 641383
Details for the North American Call at 0900 (EDT) August 13, 2013
North American toll-free number 1 866 928 7517
North American toll-paid number 1 718 873 9077
Participant code (to access the basic audio service) 51596286#
Participant URL to access on-line presentation for the North American call
https://arkadin-event.webex.com/arkadin-event/onstage/g.php?t=a&d=702195406
Participant logon and pincode to access the on-line presentation for the North American call 641433
Cautionary Note Concerning Forward-Looking Information
Information and statements contained in this news release that are
not historical facts are "forward-looking information" ---- 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.
Caledonia Mining Corporation
Mark Learmonth
+27 11 447 2499
marklearmonth@caledoniamining.com
http://www.caledoniamining.com
Numis
John Prior / Jamie Loughborough / James Black
+44 20 7260 1000
Newgate Threadneedle
Adam Lloyd
+44 20 7653 9850
WH Ireland
Adrian Hadden / Nick Field
+44 20 7220 1751
CHF Investor Relations
Juliet Heading
+1 416 868 1079 x 239
juliet@chfir.com
http://www.biblebelievers.org.au/monie.htm
God Bless
My opinions are my own and and DD I post should be confirmed as unbiased
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