SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
Of the Securities Exchange Act of 1934
For the month of May 2023
Commission File Number: 001-38164
CALEDONIA MINING CORPORATION PLC
(Translation of registrant's name into English)
B006 Millais House
Jersey JE2 3EF
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F [ X ] Form 40-F [ ]
INCORPORATION BY REFERENCE
Exhibit 99.1 included with this report on Form 6-K is expressly incorporated by reference into this report and is hereby incorporated by reference as exhibit to the Registration Statement on Form F-3 of Caledonia Mining Corporation Plc (File No. 333-255500), as amended or supplemented.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|CALEDONIA MINING CORPORATION PLC|
|Date: May 15, 2023||/s/ JOHN MARK LEARMONTH|
|John Mark Learmonth|
|CEO and Director|
Exhibit Number Description 99.1 Caledonia Mining Corporation Plc: Results for the Quarter ended March 31, 2023; Notice of Management Conference Call
Caledonia Mining Corporation Plc: Results for the Quarter ended March 31, 2023; Notice of Management Conference Call
ST HELIER, Jersey, May 15, 2023 (GLOBE NEWSWIRE) -- Caledonia Mining Corporation Plc ("Caledonia" or the "Company") (NYSE AMERICAN: CMCL; AIM: CMCL; VFEX: CMCL) announces its operating and financial results for the quarter ended March 31, 2023 (the "Quarter"). Further information on the financial and operating results for the Quarter can be found in the Management Discussion and Analysis ("MD&A") and the unaudited interim financial statements which are available on the Company's website and which have been filed on SEDAR.
This Quarter’s results are the first to reflect Caledonia’s ownership of Bilboes, the acquisition of which was completed on January 6, 2023. The near-term actions relating to Bilboes are to re-start oxide mining operations and prepare a revised feasibility study in respect of the larger sulphide project. Technical challenges were encountered on re-starting the oxide mining, but it is hoped that gold mining from near surface oxide deposits will be cash neutral and will help the Company to maintain Bilboes’ operational integrity pending completion of the feasibility study. In addition, the waste material that will be moved as part of the oxide mining activities is material that would have had to be moved later when work starts on the main sulphide project.
As stated in the first quarter production update dated April 24, Blanket Mine (“Blanket”) suffered some technical challenges which adversely affected its contribution in the Quarter. Management believes these challenges have now been resolved and is encouraged by production and cost data in April and to date in May. Accordingly, Caledonia reiterates its production guidance of 75,000-80,000 ounces for Blanket for 2023.
Financial performance was largely affected, as expected, by the integration and start-up of the Bilboes operation and technical challenges at Blanket:
1 Non-IFRS measures such as “On-mine cost per ounce”, “AISC”, “average realised gold price” and “adjusted EPS” are used throughout this document. Refer to section 10 of the MD&A for a discussion of non-IFRS measures.
A segmental analysis showing the summarised financial performance of Blanket and Bilboes is set out below.
|Net finance cost||(0.5||)||(0.2||)||(0.1||)||-||(0.4||)||0.1||(0.8||)||(0.1||)|
|Profit/(loss) before tax||8.0||16.7||(3.4||)||-||(5.4||)||(4.4||)||(0.8||)||12.3|
|(Loss)/profit after tax||5.0||12.3||(3.4||)||(5.9||)||(4.7||)||(4.3||)||7.6|
Source: note 24 to the unaudited interim financial statements for the Quarter
The inclusion, for the first time, of Bilboes in this Quarter’s report inevitably makes it difficult to carry out like-for-like comparisons with the equivalent quarter in 2022.
Production from Blanket in the Quarter was below target due to equipment failures and logistical issues. These included two separate failures of the No.4 Shaft winder and a persistent blockage in an ore-pass at Central Shaft which required alternative tramming arrangements which were more expensive and reduced tramming capacity. These issues have been resolved and production in April has been higher than expected, equating to an annualised production rate of approximately 80,000 ounces of gold per annum. This improved performance has continued into May and we confirm production guidance from Blanket for the year to December 31, 2023 in the range of 75,000 to 80,000 ounces.
The increased on-mine cost per ounce was due to the high cost per ounce at the Bilboes oxide mine where production only commenced in the last week of the Quarter. The remainder of the increase was due to higher on-mine costs at Blanket where lower production meant that fixed costs were spread across fewer production ounces and a higher electricity use. The increased electricity cost was a combination of higher consumption due to the continued heavy use of certain elements of infrastructure which had been expected to be used more sparingly and an increase in the tariff for grid power. From April, Blanket has seen a reduction on the cost of grid power following the implementation of alternative supply arrangements on April 1.
The 12.2MWac solar plant was commissioned in February and generated slightly more power than anticipated and has contributed to a substantial reduction in the amount of diesel consumed at Blanket.
In January, Caledonia announced that it had satisfied the conditions precedent to purchase Bilboes, a large, high-grade gold deposit located approximately 75 km north of Bulawayo. The main objective at Bilboes is to construct a large, open-pit operation to extract sulphide resources. Work on a revised feasibility study has commenced, with the objective of identifying the optimal way to commercialise the Bilboes sulphide project with a view to maximizing the uplift in value for Caledonia shareholders.
The start-up of the additional, small oxide mining and processing activity at Bilboes was affected by contractors’ drill rigs underperforming and variations between the realised and anticipated grade at the first target mining area. We are evaluating other target areas for oxide mining - both at Bilboes and next door at Motapa with the objective of focusing future mining on areas where we have a high confidence level in the target mining areas. Caledonia has withdrawn guidance for the oxide mining activity and in future will report production and costs retrospectively.
Mark Learmonth, Chief Executive Officer, commented:
“The first quarter of 2023 presented several operational challenges at Blanket which resulted in lower production and higher costs. We are confident these issues have been identified and addressed, and we reiterate our production guidance for Blanket of between 75,000 and 80,000 ounces of gold.
"We were pleased to complete the acquisition of Bilboes at the start of the Quarter. Although the start-up of the Bilboes oxide mining activity was disappointing, this does not detract from the attraction of the main sulphide project.
“The sulphide resource is based on direct drilling results and has been subjected to independent third-party reviews. Caledonia has commenced work on a revised feasibility study for the sulphide project which will consider updated commercial assumptions and will focus on the most judicious way to commercialise this project with the objective of maximising value for Caledonia shareholders.
“Following Caledonia’s oversubscribed fundraise in March and April, which raised approximately $16.5m, our balance sheet and operational flexibility have been improved and we are delighted to have new shareholders on our register who believe in our vision, and we hope will support us in the next stage of our growth.”
Conference Call Details
A presentation of the results for the Quarter and outlook for Caledonia is available on Caledonia's website (www.caledoniamining.com). Management will host a conference call / webinar at 3pm London time on May 16, 2023.
When: May 16, 2023 – 3pm London time
Topic: Q1 2023 Shareholder Call
Register in advance for this webinar:
After registering, you will receive a confirmation email containing information about joining the webinar.
|Caledonia Mining Corporation Plc|
Tel: +44 1534 679 800
Tel: +44 7817 841 793
|Cenkos Securities plc (Nomad and Joint Broker)|
Tel: +44 207 397 1965
Tel: +44 131 220 9771
Tel: +44 131 220 9775
|Liberum Capital Limited (Joint Broker)|
Scott Mathieson/Kane Collings
Tel: +44 20 3100 2000
|BlytheRay Financial PR (UK)|
Tim Blythe/Megan Ray
Tel: +44 207 138 3204
|3PPB (Financial PR, North America)|
Tel: +1 917 991 7701
Tel: +1 203 940 2538
|Curate Public Relations (Zimbabwe)|
Tel: +263 77802131
|IH Securities (Private) Limited (VFEX Sponsor - Zimbabwe)|
Tel: +263 (242) 745 119/33/39
Note: This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation (EU) No. 596/2014 (“MAR”) as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 and is disclosed in accordance with the Company's obligations under Article 17 of MAR.
Cautionary Note Concerning Forward-Looking Information
Information and statements contained in this news release that are not historical facts are “forward-looking information” within the meaning of applicable securities legislation that involve risks and uncertainties relating, but not limited, to Caledonia’s current expectations, intentions, plans, and beliefs. Forward-looking information can often be identified by forward-looking words such as “anticipate”, “believe”, “expect”, “goal”, “plan”, “target”, “intend”, “estimate”, “could”, “should”, “may” and “will” or the negative of these terms or similar words suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. Examples of forward-looking information in this news release include: production guidance, estimates of future/targeted production rates, and our plans and timing regarding further exploration and drilling and development. This forward-looking information is based, in part, on assumptions and factors that may change or prove to be incorrect, thus causing actual results, performance or achievements to be materially different from those expressed or implied by forward-looking information. Such factors and assumptions include, but are not limited to: failure to establish estimated resources and reserves, the grade and recovery of ore which is mined varying from estimates, success of future exploration and drilling programs, reliability of drilling, sampling and assay data, assumptions regarding the representativeness of mineralization being inaccurate, success of planned metallurgical test-work, capital and operating costs varying significantly from estimates, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and other factors.
Security holders, potential security holders and other prospective investors should be aware that these statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. Such factors include, but are not limited to: risks relating to estimates of mineral reserves and mineral resources proving to be inaccurate, fluctuations in gold price, risks and hazards associated with the business of mineral exploration, development and mining, risks relating to the credit worthiness or financial condition of suppliers, refiners and other parties with whom the Company does business; inadequate insurance, or inability to obtain insurance, to cover these risks and hazards, employee relations; relationships with and claims by local communities and indigenous populations; political risk; risks related to natural disasters, terrorism, civil unrest, public health concerns (including health epidemics or outbreaks of communicable diseases such as the coronavirus (COVID-19)); availability and increasing costs associated with mining inputs and labour; the speculative nature of mineral exploration and development, including the risks of obtaining or maintaining necessary licenses and permits, diminishing quantities or grades of mineral reserves as mining occurs; global financial condition, the actual results of current exploration activities, changes to conclusions of economic evaluations, and changes in project parameters to deal with unanticipated economic or other factors, risks of increased capital and operating costs, environmental, safety or regulatory risks, expropriation, the Company’s title to properties including ownership thereof, increased competition in the mining industry for properties, equipment, qualified personnel and their costs, risks relating to the uncertainty of timing of events including targeted production rate increase and currency fluctuations. Security holders, potential security holders and other prospective investors are cautioned not to place undue reliance on forward-looking information. By its nature, forward-looking information involves numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and various future events will not occur. Caledonia undertakes no obligation to update publicly 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.
This news release is not an offer of the shares of Caledonia for sale in the United States or elsewhere. This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the shares of Caledonia, in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such province, state or jurisdiction.
|Condensed Consolidated Statements of profit or loss and Other comprehensive income (Unaudited)|
|($’000’s)||3 months ended|
|Net foreign exchange gain||1,533||909|
|Cash-settled share-based expense||(280||)||(367||)|
|Equity-settled share-based expense||(110||)||(82||)|
|Net derivative financial instrument expenses||(434||)||(1,738||)|
|Operating (loss) profit||(1||)||12,452|
|Net finance costs||(767||)||(116||)|
|(Loss) profit before tax||(768||)||12,336|
|(Loss) profit for the period||(4,270||)||7,617|
|Other comprehensive (loss) income|
|Items that are or may be reclassified to profit or loss|
|Exchange differences on translation of foreign operations||(369||)||693|
|Total comprehensive (loss) income for the period||(4,639||)||8,310|
|(Loss) profit attributable to:|
|Owners of the Company||(5,030||)||5,940|
|(Loss) profit for the period||(4,270||)||7,617|
|Total comprehensive (loss) income attributable to:|
|Owners of the Company||(5,399||)||6,633|
|Total comprehensive (loss) income for the period||(4,639||)||8,310|
|(Loss) earnings per share (cents)|
|Adjusted (loss) earnings per share (cents)|
|Dividends paid per share (cents)||14.0||14.0|
|Condensed Consolidated Statements of Cash Flows (Unaudited)|
|3 months ended|
|Cash inflow from operations||664||11,844|
|Net finance costs paid||(200||)||(31||)|
|Net cash (outflow) inflow from operating activities||(876||)||10,155|
|Cash flows from investing activities|
|Acquisition of property, plant and equipment||(4,593||)||(9,734||)|
|Acquisition of exploration and evaluation assets||(144||)||(224||)|
|Net cash outflow from investing activities||(4,737||)||(9,958||)|
|Cash flows from financing activities|
|Payment of lease liabilities||(37||)||(40||)|
|Shares issued - equity raise (net of transaction cost)||10,823||-|
|Loan note instruments - Motapa payment||(5,399||)||-|
|Loan note instruments - Solar bond issue receipts||4,500||-|
|Net cash inflow (outflow) from financing activities||7,463||(1,828||)|
|Net increase (decrease) in cash and cash equivalents||1,850||(1,631||)|
|Effect of exchange rate fluctuations on cash and cash equivalents||(157||)||(204||)|
|Net cash and cash equivalents at beginning of the period||1,496||16,265|
|Net cash and cash equivalents at end of the period||3,189||14,430|
|Summarised Consolidated Statements of Financial Position (Unaudited)|
|($’000’s)||As at||Mar 31||Dec 31|
|Total non-current assets||269,069||196,764|
|Trade and other receivables||9,957||9,185|
|Income tax receivable||82||40|
|Cash and cash equivalents||19,021||6,735|
|Derivative financial assets||6||440|
|Total non-current liabilities||13,196||9,291|
|Loan notes payable – short term portion||2,514||7,104|
|Lease liabilities – short term portion||136||132|
|Trade and other payables||26,048||17,454|
|Income tax payable||2,210||1,324|
|Cash-settled share-based payments - short term portion||482||1,188|
|Total liabilities||60 412||41,732|
|Total equity and liabilities||319 968||235,191|