Caledonia Mining Reports Second Quarter 2012 Operating and Financial Results and Notification of Management Conference Call Press Release: Caledonia Mining Corporation –
TORONTO, ONTARIO--(Marketwire -08/14/12)-
Caledonia Mining Corporation
(the "Company") (CAL.TO)(CALVF)(CMCL.L) is pleased to announce its operating and financial results for the second quarter 2012 ("Q2" or the "Quarter"), which are reported below in Canadian dollars unless otherwise indicated.
Operational Highlights
-- Gold produced at the Blanket Mine in Zimbabwe in Q2 was 11,560 ounces, 26% higher than the 9,164 ounces produced in the quarter ended March 31, 2012 (the "preceding quarter") and 41% higher than the 8,226 ounces produced in Q2 of 2011 (the "comparable quarter").
-- The increase in gold production in Q2 was due to the completion of scheduled maintenance on the winding portion of both compartments of No. 4 Shaft which was completed in early May and progressively allowed an increase in the daily available hoisting time.
-- Average gold recovery during the Quarter increased to 93.9%, compared to 93.2% in the preceding quarter.
-- Blanket's cash operating costs in the Quarter decreased to US$547 per ounce of gold produced from US$648 in the preceding quarter and US$585 in the comparable quarter. The decrease in cash costs was due to the higher gold production during the Quarter and the non-recurrence of certain costs which temporarily increased the average cost per ounce in the preceding quarter.
-- Gold production in July 2012 was 4,708 ounces.
Financial Highlights
-- Gold Sales during the Quarter were 11,560 ounces at an average sales price of US$1,599 per ounce compared to 10,368 ounces at an average sales price of US$1,688 in the preceding quarter and 8,226 ounces at an average sales price of US$1,512 in the comparable quarter.
-- Gross Profit for the Quarter (i.e. after depreciation and amortization but before administrative expenses) was $10,067,000 compared to $8,996,000 in the preceding quarter and $5,593,000 in the comparable quarter.
-- Net profit after tax for the Quarter was $5,497,000 compared to $7,111,000 in the preceding quarter and $2,874,000 in the comparable quarter. Net profit in the Quarter was reduced by the payment of a US$1 million donation to the Gwanda Community Share Ownership Trust in terms of the Indigenisation Agreements signed by Blanket Mine, and by the increase in second quarter tax payments to the Zimbabwean Revenue Authority.
-- Basic earnings per share for the Quarter were 1.1 cents per share, compared to 1.4 cents in the preceding quarter and 0.6 cents in the comparable quarter. Basic earnings per share for the first half of the year were 2.5 cents compared to 0.9 cents in the six months to June 30, 2011.
-- At June 30, 2012 the Corporation had cash and cash equivalents of $18,323,000 compared to $16,288,000 at March 31, 2012 and $2,612,000 at June 30, 2011.
-- Cash flow from operations in the six months to June 30, 2012 before capital investment was $11,195,000 compared to $7,346,000 in the six months to June 30, 2011.
-- During the Quarter Blanket made payments in respect of direct and indirect taxes, royalties, licence fees, levies and other payments to the Government of Zimbabwe totalling US$7,893,000 compared to US$3,282,000 in the preceding quarter and US$3,307,000 in the comparable quarter. Payments in the Quarter include a donation of US$1 million to the Gwanda Community Share Ownership Trust and a payment of US$1.8 million which was made to the National Indigenisation Economic Empowerment Fund ("NIEEF") in anticipation of an advance dividend arrangement against their right to receive dividends declared by Blanket on their proposed shareholding in Blanket. Both the Community donation and the payment to NIEEF were made in terms of the implementation of indigenisation at Blanket Mine.
NAMA Base Metals Project, Zambia
A News Release issued on August 9, 2012 sets out a summary of the drilling programme that has been completed which confirms the existence of the mineralised zone that was identified in 2011 and describes the further drilling work which has already commenced.