CALVF management has got the shares fast UP twice before - to $6 and to $9 - TI makes a top trend line pointing @ $12 and better :-)
history often repeat itself -
note. CALVF SPO $12 would be pretty nice for the management thee got doubly doubloons dough golden dove laying golden eggs nicely in place - :-)
CALVF Management granted share purchase options over ordinary shares of the Company ("Ordinary Shares") to its directors, officers and employees etc. options outstanding to 39,859,000 - equivalent to approximately 7.85% of Caledonia's issued share capital.
Options have been granted exercisable from September 10, 2012 at a exercisable price of $0.09 (Cdn.) per Ordinary Share.
CALVF EPS: $0.04 (earning per share) CALVF - NO DEBT - CALVF lowest cost GOLD producer current appr. Au 50,000 ounces/year - CALVF GOLD production total cost below $600 per ounce - CALVF GOLD production plant only running @ half capacity - CALVF Blanket Gold Mines starting up 3 more Gold Mines with close trucking distance from the main production plant - CALVF holding about $20 million in cash - CALVF NAMA Zambia 800 Sq.Km Copper & Cobalt resource may become one of the largest in the world with current ongoing drilling CALVF 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.
CALVF Blanket Gold Mine production in July 2012 was 4,708 ounces.-
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.
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
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