EUROPEAN GOLD FORUM 2015 > WEBCAST - Caledonia Mining Corporation - http://www.europeangoldforum.org/egf15/egf15-webcast/egf15-webcast-stream.html
(click on the flash) Caledonia Mining
European Gold Forum presented by The Denver Gold Group, Inc. on behalf the world's precious metal producers.
April 14, 2015 - April 15, 2015
Chief Financial Officer
Mark Learmonth is Caledonia's Chief Financial Officer and has worked at
Caledonia since 2008.
He is based in Johannesburg, South Africa. He is also a member of
the executive committee of the Chamber of Mines, Zimbabwe http://www.wsw.com/webcast/egf15/cal.to/cal.to.pdf
Steady As She Goes For Caledonia Mining’s Expansion Plan At Blanket -
NewsMar 3, 2015
The Blanket Gold Mines -
By Alastair Ford http://www.minesite.com/2015/03/03/steady-as-she-goes-for-caledonia-minings-expansion-plan-at-blanket/
It’s been a slightly bumpy ride for Caledonia Mining shareholders
over the past year or so, and with that in mind the company is
planning regular updates in regards to its expansion plans at
the Blanket gold mine in Zimbabwe.
“Every quarter or so we’re going to be putting out a press
release”, says chief financial officer Mark Learmonth.
The thinking is that a steady stream of positive news about
progress towards the 75,000 to 80,000 ounce per year target will
reassure a market that is no longer in love with gold companies,
as the gold price fluctuates and other sectors come back from
prolonged periods in the doldrums.
But Caledonia’s got one thing going for it that most other gold
juniors don’t have: the luxury of a significant cash pile.
That’s allowed it significant room for manoeuvre as it works to
boost production from the current rate of just over 40,000 ounces
The plan is to pay for the US$50 million expansion from cash
generated directly by the Blanket operating subsidiary, which
is held in partnership with local Zimbabwean community and
The plan holds good as long as gold trades at
between US$1,200 and US$1,250 per ounce or higher.
Any lower, and Caledonia would have to look at other options.
But even then it’d be unlikely that it would dip immediately
into its own cash pile, which at the last reporting date,
for the quarter ended September 2014,
stood at nearly US$28 million.
“Expansion is funded out of cash flow at between US$1,200 and
US$1,250”, says Mark.
“If the gold price fell we’d need to take on some more debt
locally, and indeed the local debt markets in Zimbabwe are
So, expansion will be paid for firstly out of existing cash flow,
and then if there’s a shortfall, with debt, and only lastly
by resort to Caledonia’s own cash pile.
That multilayered level of financial support for the expansion
is what’s known as strength in depth. And it’s because of that
strength in depth that Caledonia has been able to pay a chunky
dividend over the past few years, and aims to keep on paying it.
“In extremis”, says Mark, “Caledonia can make good any funding gap.”
But it would be quite a set of circumstances.
According to the company’s own calculations, if the gold price
had dropped to US$1,000 on 1st January this year and stayed
there, funding for the expansion would still have been viable.
And although forecasting the gold price outlook is not the
relentless preserve of the bulls it once was, there has been
no sign at all of any drop towards US$1,000 in recent years.
What’s more, once the plan has been implemented, the company will
be able to survive a gold price at significantly weaker levels.
So the financial situation is sound. What about the
implementation? On that score, it’s steady as she goes.
Nearly half of the new tramming loop on the 750 metre level has
been completed, and final completion is on schedule for June.
The winders for the No. 6 Winze have been installed and
commissioned, and new winders acquired for the new central shaft,
where pre-sink work is expected to commence in July 2015.
“The winders are important”, says Mark.
“They are a critical thing.
If we don’t have the winders we aren’t going to sink this shaft.
The first one should get up there in a couple of months.”
He’s pleased with the price he’s paid too –
But one of the benefits we face is that as the South African
mining industry falls on its sword you get all sorts of stuff
coming onto the market.
But you have to move quickly.
If we’d wanted the winders made it would have cost US$10 million.
Meanwhile, the business environment inside Zimbabwe seems to be
becoming increasingly benign.
Mark says that he and Caledonia’s chief executive Steve Curtis
have spent quite a lot of time in Harare of late, and
been quite encouraged by what they saw.
“We met the governor of the reserve bank,
the minister for mines and the finance minister.
There’s been a very striking change.
We got a very strong sense that they are keen to see us and
gold miners in general recover.”
And it’s not just talk.
The royalty rate has been cut from seven per cent
to five per cent.
And the selling discount to the state-owned gold monopoly
has been cut to one per cent.
“You show me a country in the world where taxes don’t go up and
up”, says Mark. And he’s got a point.
“The Zimbabweans are doing what they can and
it’s appreciated”, he says.
“We’ve got a strong sense that perceptions are
going to change about Zimbabwe.”
But whether perceptions change or not,
Caledonia is getting on with the job.
“All we want to do in the course of 2015 is deliver the plan”,
Keep your eyes peeled for further updates. http://www.minesite.com/2014/12/11/101st-minesite-webcast-mark-learmonth-vice-president-caledonia-mining/
Caledonia Declares Sixth Quarterly Dividend -
Published : April 07, 2015 http://www.24hgold.com/english/news-company-gold-silver-declares-sixth-quarterly-dividend.aspx?articleid=1368164
2014 Results Presentation -
Results Presentation - http://www.caledoniamining.com/finance/2014%20AFS%20Review.pdf
2014 Annual Results Review Video - http://www.caledoniamining.com/
CALVF - Africa's lowest cost gold producer -
doing very well -
CALVF - NO DEBT - CASH >$28 million in London banks -
CALVF - Paying about 8% Dividend -
CALVF - Sold 51% of Blanket Mines for >$30 million -
- to mine workers and their community etc. -
CALVF - collecting 10% on the >$30 mil. to payed in full -
CALVF - Managing the Blanket Gold Mines - http://www.caledoniamining.com/pdfs/Q3%202014%20Results.pdf http://www.caledoniamining.com/index.php/operations/blanket-gold-mine
Caledonia Mining is a producing gold company based in Canada.
Caledonia Mining holds various exploration projects in Zambia.
Its main asset in production is BLANKET in Zimbabwe and its main exploration properties are ROOIPOORT in South Africa and NAMA in Zambia. http://www.24hgold.com/english/news-company-gold-silver-declares-sixth-quarterly-dividend.aspx?articleid=1368164 http://investorshub.advfn.com/boards/read_msg.aspx?message_id=112285617 http://web.tmxmoney.com/article.php?newsid=74588197&qm_symbol=CAL http://investorshub.advfn.com/boards/read_msg.aspx?message_id=112287980
Gold & Silver is the only REAL Legal Tender -
by The Founding Fathers for your -
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