Exhibit 99.1
Caledonia Mining Corporation Plc
MANAGEMENT’S RESPONSIBILITY FOR FINANCIAL INFORMATION |
To the Shareholders of Caledonia Mining Corporation Plc:
Management has prepared the information and representations in this interim report. The unaudited condensed consolidated interim financial statements of Caledonia Mining Corporation Plc and its subsidiaries (the “Group”) have been prepared in accordance with IFRS Accounting Standards, as issued by the International Accounting Standards Board (“IFRS”) and, where appropriate, these statements include some amounts that are based on best estimates and judgment. Management has determined such amounts on a reasonable basis in order to ensure that the unaudited condensed consolidated interim financial statements are presented fairly, in all material respects.
The accompanying Management Discussion and Analysis (“MD&A”) also includes information regarding the impact of current transactions, sources of liquidity, capital resources, operating trends, risks and uncertainties. Actual results in the future may differ materially from our present assessment of this information because future events and circumstances may not occur as expected.
The Group maintains adequate systems of internal accounting and administrative controls, within reasonable cost. Such systems are designed to provide reasonable assurance that relevant and reliable financial information are produced.
Management is responsible for establishing and maintaining adequate internal controls over financial reporting (“ICOFR”). Any system of ICOFR, no matter how well designed, has inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.
At September 30, 2024 management evaluated the effectiveness of the Group’s ICOFR and concluded that such ICOFR was effective based on the criteria outlined in the Internal Control Integrated Framework (2013) issued by the Committee of Sponsoring Organisations of the Treadway Commission.
The Board of Directors, through its Audit Committee, is responsible for ensuring that management fulfills its responsibilities for financial reporting and internal control. The Audit Committee is composed of four independent non-executive directors. This Committee meets periodically with management, the external auditor and internal auditor to review accounting, auditing, internal control and financial reporting matters.
These unaudited condensed consolidated interim financial statements have not been audited by the Group’s independent auditor.
The unaudited condensed consolidated interim financial statements for the period ended September 30, 2024 were approved by the Board of Directors and signed on its behalf on November 11, 2024.
| (Signed) J.M. Learmonth | (Signed) C.O. Goodburn |
| Chief Executive Officer | Chief Financial Officer |
Caledonia Mining Corporation Plc
Consolidated statements of profit or loss and other comprehensive income
(in thousands of United States Dollars, unless indicated otherwise)
For the | Three months ended | Nine months ended | ||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
Unaudited |
| Note | 2024 | 2023 | 2024 | 2023 | ||||||||||||||
Revenue | 46,868 | 41,187 | 135,503 | 107,653 | ||||||||||||||||
Royalty | (2,422 | ) | (2,207 | ) | (6,831 | ) | (5,650 | ) | ||||||||||||
Production costs | 6 | (21,085 | ) | (20,452 | ) | (60,505 | ) | (61,028 | ) | |||||||||||
Depreciation | 13 | (4,048 | ) | (4,385 | ) | (12,106 | ) | (10,049 | ) | |||||||||||
Gross profit | 19,313 | 14,143 | 56,061 | 30,926 | ||||||||||||||||
Net foreign exchange loss | 7 | (3,129 | ) | (257 | ) | (9,282 | ) | (2,334 | ) | |||||||||||
Administrative expenses | 8 | (3,954 | ) | (2,889 | ) | (10,229 | ) | (11,890 | ) | |||||||||||
Net derivative financial instrument expense | (20 | ) | (102 | ) | (496 | ) | (590 | ) | ||||||||||||
Equity-settled share-based expense | 9.2 | (279 | ) | (233 | ) | (785 | ) | (564 | ) | |||||||||||
Cash-settled share-based expense | 9.1 | (422 | ) | (27 | ) | (479 | ) | (298 | ) | |||||||||||
Other expenses | 10 | (2,814 | ) | (701 | ) | (4,078 | ) | (2,800 | ) | |||||||||||
Other income | 16 | 62 | 365 | 127 | ||||||||||||||||
Operating profit | 8,711 | 9,996 | 31,077 | 12,577 | ||||||||||||||||
Finance income | 11 | 7 | 21 | 16 | 30 | |||||||||||||||
Finance cost | 11 | (831 | ) | (529 | ) | (2,360 | ) | (2,362 | ) | |||||||||||
Profit before tax | 7,887 | 9,488 | 28,733 | 10,245 | ||||||||||||||||
Tax expense | (4,600 | ) | (3,777 | ) | (12,281 | ) | (8,552 | ) | ||||||||||||
Profit for the period | 3,287 | 5,711 | 16,452 | 1,693 | ||||||||||||||||
Other comprehensive income | ||||||||||||||||||||
Items that are or may be reclassified to profit or loss | ||||||||||||||||||||
Exchange differences on translation of foreign operations | 629 | (79 | ) | 663 | (778 | ) | ||||||||||||||
Total comprehensive income for the period | 3,916 | 5,632 | 17,115 | 915 | ||||||||||||||||
Profit (loss) attributable to: | ||||||||||||||||||||
Owners of the Company | 2,267 | 4,506 | 12,827 | (1,036 | ) | |||||||||||||||
Non-controlling interests | 1,020 | 1,205 | 3,625 | 2,729 | ||||||||||||||||
Profit for the period | 3,287 | 5,711 | 16,452 | 1,693 | ||||||||||||||||
Total comprehensive income attributable to: | ||||||||||||||||||||
Owners of the Company | 2,896 | 4,427 | 13,490 | (1,814 | ) | |||||||||||||||
Non-controlling interests | 1,020 | 1,205 | 3,625 | 2,729 | ||||||||||||||||
Total comprehensive income for the period | 3,916 | 5,632 | 17,115 | 915 | ||||||||||||||||
Earnings (loss) per share | ||||||||||||||||||||
Basic earnings (loss) per share ($) | 0.12 | 0.24 | 0.66 | (0.07 | ) | |||||||||||||||
Diluted earnings (loss) per share ($)* | 0.12 | 0.24 | 0.66 | (0.07 | ) | |||||||||||||||
* Diluted earnings (loss) per share restated for September 2023 (polaris.brighterir.com/public/caledonia_mining/news/rns_tool/story/xe153zw).
The accompanying notes on pages 6 to 29 are an integral part of these consolidated financial statements.
On behalf of the Board: “J.M. Learmonth”- Chief Executive Officer and “C.O. Goodburn”- Chief Financial Officer.
Caledonia Mining Corporation Plc
Consolidated statements of financial position
(in thousands of United States Dollars, unless indicated otherwise)
Unaudited | September 30, | December 31, | ||||||||||
As at |
| Note | 2024 | 2023 | ||||||||
Assets | ||||||||||||
Exploration and evaluation assets | 12 | 95,830 | 94,272 | |||||||||
Property, plant and equipment | 13 | 183,663 | 179,649 | |||||||||
Deferred tax asset | 310 | 153 | ||||||||||
Total non-current assets | 279,803 | 274,074 | ||||||||||
Income tax receivable | 70 | 1,120 | ||||||||||
Inventories | 14 | 22,732 | 20,304 | |||||||||
Derivative financial assets | – | 88 | ||||||||||
Trade and other receivables | 15 | 9,651 | 9,952 | |||||||||
Prepayments | 16 | 6,717 | 2,538 | |||||||||
Cash and cash equivalents | 17 | 7,204 | 6,708 | |||||||||
Assets held for sale | 18 | 13,483 | 13,519 | |||||||||
Total current assets | 59,857 | 54,229 | ||||||||||
Total assets | 339,660 | 328,303 | ||||||||||
Equity and liabilities | ||||||||||||
Share capital | 19 | 165,408 | 165,068 | |||||||||
Reserves | 139,029 | 137,819 | ||||||||||
Retained loss | (58,407 | ) | (63,172 | ) | ||||||||
Equity attributable to shareholders | 246,030 | 239,715 | ||||||||||
Non-controlling interests | 25,834 | 24,477 | ||||||||||
Total equity | 271,864 | 264,192 | ||||||||||
Liabilities | ||||||||||||
Deferred tax liabilities | 6,101 | 6,131 | ||||||||||
Provisions | 20 | 9,562 | 10,985 | |||||||||
Loans and borrowings - long term portion | 1,771 | – | ||||||||||
Loan notes - long term portion | 21 | 8,282 | 6,447 | |||||||||
Cash-settled share-based payment - long term portion | 9.1 | 583 | 374 | |||||||||
Lease liabilities - long term portion | 8 | 41 | ||||||||||
Total non-current liabilities | 26,307 | 23,978 | ||||||||||
Cash-settled share-based payment - short term portion | 9.1 | 1,081 | 920 | |||||||||
Income tax payable | 2,244 | 10 | ||||||||||
Lease liabilities - short term portion | 94 | 167 | ||||||||||
Loan notes - short term portion | 21 | 855 | 665 | |||||||||
Trade and other payables | 22 | 22,278 | 20,503 | |||||||||
Overdraft and term loans | 17 | 14,839 | 17,740 | |||||||||
Liabilities associated with assets held for sale | 18 | 98 | 128 | |||||||||
Total current liabilities | 41,489 | 40,133 | ||||||||||
Total liabilities | 67,796 | 64,111 | ||||||||||
Total equity and liabilities | 339,660 | 328,303 | ||||||||||
The accompanying notes on pages 6 to 29 are an integral part of these consolidated financial statements.
Caledonia Mining Corporation Plc
Consolidated statements of changes in equity
(in thousands of United States Dollars, unless indicated otherwise)
Unaudited |
| Note | Share capital | Foreign currency translation reserve | Contributed surplus | Equity-settled share-based payment reserve | Retained loss | Total | Non-controlling interests (NCI) | Total equity | ||||||||||||||||||||||||||
Balance December 31, 2022 | 83,471 | (9,787 | ) | 132,591 | 14,997 | (50,222 | ) | 171,050 | 22,409 | 193,459 | ||||||||||||||||||||||||||
Transactions with owners: | ||||||||||||||||||||||||||||||||||||
Dividends declared | - | - | - | - | (8,752 | ) | (8,752 | ) | (1,512 | ) | (10,264 | ) | ||||||||||||||||||||||||
Share-based payments: | ||||||||||||||||||||||||||||||||||||
- Shares issued on settlement of incentive plan awards | 9.1 | 351 | - | - | - | - | 351 | - | 351 | |||||||||||||||||||||||||||
- Equity-settled share-based expense | 9.2 | - | - | - | 564 | - | 564 | - | 564 | |||||||||||||||||||||||||||
Shares issued: | ||||||||||||||||||||||||||||||||||||
- Equity raise (net of transaction cost) | 19 | 15,658 | - | - | - | - | 15,658 | - | 15,658 | |||||||||||||||||||||||||||
- Bilboes acquisition | 65,677 | - | - | - | - | 65,677 | - | 65,677 | ||||||||||||||||||||||||||||
Total comprehensive income: | - | - | - | - | - | |||||||||||||||||||||||||||||||
(Loss) profit for the period | - | - | - | - | (1,036 | ) | (1,036 | ) | 2,729 | 1,693 | ||||||||||||||||||||||||||
Other comprehensive income for the period | - | (778 | ) | - | - | - | (778 | ) | - | (778 | ) | |||||||||||||||||||||||||
Balance at September 30, 2023 | 165,157 | (10,565 | ) | 132,591 | 15,561 | (60,010 | ) | 242,734 | 23,626 | 266,360 | ||||||||||||||||||||||||||
Balance December 31, 2023 | 165,068 | (10,409 | ) | 132,591 | 15,637 | (63,172 | ) | 239,715 | 24,477 | 264,192 | ||||||||||||||||||||||||||
Transactions with owners: | ||||||||||||||||||||||||||||||||||||
Dividends declared | - | - | - | - | (8,062 | ) | (8,062 | ) | (2,268 | ) | (10,330 | ) | ||||||||||||||||||||||||
Share-based payments: | ||||||||||||||||||||||||||||||||||||
- Shares issued on settlement of incentive plan awards | 9 | 303 | - | - | - | - | 303 | - | 303 | |||||||||||||||||||||||||||
- Equity-settled share-based expense | 9.2 | - | - | - | 547 | - | 547 | - | 547 | |||||||||||||||||||||||||||
Shares issued: | ||||||||||||||||||||||||||||||||||||
- Options exercised | 37 | - | - | - | - | 37 | - | 37 | ||||||||||||||||||||||||||||
Total comprehensive income: | ||||||||||||||||||||||||||||||||||||
Profit for the period | - | - | - | - | 12,827 | 12,827 | 3,625 | 16,452 | ||||||||||||||||||||||||||||
Other comprehensive income for the period | - | 663 | - | - | - | 663 | - | 663 | ||||||||||||||||||||||||||||
Balance at September 30, 2024 | 165,408 | (9,746 | ) | 132,591 | 16,184 | (58,407 | ) | 246,030 | 25,834 | 271,864 | ||||||||||||||||||||||||||
| Note | 19 | ||||||||||||||||||||||||||||||||||
The accompanying notes on pages 6 to 29 are an integral part of these consolidated financial statements.
Caledonia Mining Corporation Plc
Consolidated statements of cash flows
(in thousands of United States Dollars, unless indicated otherwise)
Unaudited | Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||
| Note | 2024 | 2023 | 2024 | 2023 | |||||||||||||||
Cash inflow from operations | 23 | 11,407 | 16,963 | 38,930 | 17,629 | |||||||||||||||
Interest received | 7 | 21 | 16 | 30 | ||||||||||||||||
Finance costs paid | 25.1 | (781 | ) | (331 | ) | (2,064 | ) | (1,762 | ) | |||||||||||
Tax paid | 25.2 | (6,042 | ) | (2,158 | ) | (8,318 | ) | (4,504 | ) | |||||||||||
Net cash inflow from operating activities | 4,591 | 14,495 | 28,564 | 11,393 | ||||||||||||||||
Cash flows used in investing activities | ||||||||||||||||||||
Acquisition of property, plant and equipment | 25.3 | (6,751 | ) | (9,573 | ) | (17,389 | ) | (20,175 | ) | |||||||||||
Acquisition of exploration and evaluation assets | (245 | ) | (597 | ) | (1,408 | ) | (880 | ) | ||||||||||||
Acquisition of put options | – | (1 | ) | (408 | ) | (812 | ) | |||||||||||||
Net cash used in investing activities | (6,996 | ) | (10,171 | ) | (19,205 | ) | (21,867 | ) | ||||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Dividends paid | 25.4 | (3,430 | ) | (2,801 | ) | (9,062 | ) | (8,118 | ) | |||||||||||
Payment of lease liabilities | (39 | ) | (36 | ) | (114 | ) | (108 | ) | ||||||||||||
Shares issued – equity raise (net of transaction cost) | 19 | – | – | – | 15,658 | |||||||||||||||
Proceeds from long term loans | 1 | – | 2,033 | – | ||||||||||||||||
Repayments of term loans | (262 | ) | – | (262 | ) | – | ||||||||||||||
Loan notes - Motapa payment | – | (563 | ) | – | (7,250 | ) | ||||||||||||||
Loan notes - solar bond issue receipts (net of transaction cost) | 21 | – | – | 1,939 | 7,000 | |||||||||||||||
Net cash (used in) from financing activities | (3,730 | ) | (3,400 | ) | (5,466 | ) | 7,182 | |||||||||||||
Net (decrease) increase in cash and cash equivalents | (6,135 | ) | 924 | 3,893 | (3,292 | ) | ||||||||||||||
Effect of exchange rate fluctuations on cash and cash equivalents | (134 | ) | (1,209 | ) | (496 | ) | (1,396 | ) | ||||||||||||
Net cash and cash equivalents at the beginning of the period | (1,366 | ) | (2,907 | ) | (11,032 | ) | 1,496 | |||||||||||||
Net cash and cash equivalents at the end of the period | (7,635 | ) | (3,192 | ) | (7,635 | ) | (3,192 | ) | ||||||||||||
The accompanying notes on pages 6 to 29 are an integral part of these consolidated financial statements.
Caledonia Mining Corporation Plc
Notes to the Condensed Consolidated Interim Financial Statements
For the period ended September 30, 2024 and 2023
(in thousands of United States Dollars, unless indicated otherwise)
1 | Reporting entity |
Caledonia Mining Corporation Plc (“Caledonia” or the “Company”) is a company domiciled in Jersey, Channel Islands. The Company’s registered office address is B006 Millais House, Castle Quay, St Helier, Jersey, Channel Islands.
These unaudited condensed consolidated interim financial statements as at and for the nine months ended September 30, 2024 are of the Company and its subsidiaries (the “Group”). The Group’s primary involvement is in the operation of a gold mine and the exploration and development of mineral properties for precious metals.
Caledonia’s shares are listed on the NYSE American LLC stock exchange (symbol – “CMCL”). Depository interests in Caledonia’s shares are admitted to trading on AIM of the London Stock Exchange plc (symbol – “CMCL”). Caledonia listed on the Victoria Falls Stock Exchange (“VFEX”) (symbol – “CMCL”) on December 2, 2021. Caledonia voluntarily delisted from the Toronto Stock Exchange (the “TSX”) on June 19, 2020. After the delisting the Company remains a Canadian reporting issuer and has to comply with Canadian securities laws until it demonstrates that Canadian shareholders represent less than 2% of issued share capital.
2 | Basis of preparation |
(a) | Statement of compliance |
These unaudited condensed consolidated interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting and do not include all the information required for full annual financial statements. Accordingly, certain information and disclosures normally included in the annual financial statements prepared in accordance with IFRS Accounting Standards, as issued by the International Accounting Standards Board (“IFRS”) have been omitted or condensed. Selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the financial position and performance of the Group since the last annual consolidated financial statements as at and for the year ended December 31, 2023.
(b) | Basis of measurement |
These unaudited condensed consolidated interim financial statements have been prepared on the historical cost basis except for:
● | cash-settled share-based payment arrangements measured at fair value on grant and re-measurement dates; |
● | equity-settled share-based payment arrangements measured at fair value on the grant date; and |
● | derivative financial assets measured at fair value. |
(c) | Functional currency |
These unaudited condensed consolidated interim financial statements are presented in United States Dollar (“$” or “US Dollars” or “USD”), which is also the functional currency of the Company. All financial information presented in US Dollars has been rounded to the nearest thousand, unless indicated otherwise. Refer to note 7 for changes to Zimbabwean real-time gross settlement, bond notes or bond coins (“RTGS$”), the Zimbabwe Gold (“ZiG”) and its effect on the consolidated statement of profit or loss and other comprehensive income.
Caledonia Mining Corporation Plc
Notes to the Condensed Consolidated Interim Financial Statements
For the period ended September 30, 2024 and 2023
(in thousands of United States Dollars, unless indicated otherwise)
3 | Use of accounting assumptions, estimates and judgements |
In preparing these unaudited condensed consolidated interim financial statements, management has made accounting assumptions, estimates and judgements that affect the application of the Group’s accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Changes in estimates are recognised prospectively. Key accounting assumptions, estimates and judgements applied in the preparation of the unaudited condensed consolidated interim financial statements are consistent with those applied in the preparation of the audited annual consolidated financial statements for the year ended December 31, 2023.
4 | Material accounting policies |
The same accounting policies and methods of computation, except as included below, have been applied consistently to all periods presented in these unaudited condensed consolidated interim financial statements as compared to the Group’s annual consolidated financial statements for the year ended December 31, 2023. In addition, the accounting policies have been applied consistently throughout the Group.
5 | Blanket Zimbabwe Indigenisation Transaction |
On February 20, 2012 the Group announced it had signed a Memorandum of Understanding (“MoU”) with the Minister of Youth, Development, Indigenisation and Empowerment of the Zimbabwean Government pursuant to which the Group agreed that indigenous Zimbabweans would acquire an effective 51% ownership interest in the Zimbabwean company owning the Blanket Mine (also referred to herein as “Blanket” or “Blanket Mine” as the context requires) for a paid transactional value of $30.09 million. Pursuant to the above, members of the Group entered into agreements with each indigenous shareholder to transfer 51% of the Group’s ownership interest in Blanket Mine whereby it:
• | sold a 16% interest to the National Indigenisation and Economic Empowerment Fund (“NIEEF”) for $11.74 million; |
• | sold a 15% interest to Fremiro Investments (Private) Limited (“Fremiro”), which is owned by indigenous Zimbabweans, for $11.01 million; |
• | sold a 10% interest to Blanket Employee Trust Services (Private) Limited (“BETS”) for the benefit of present and future managers and employees for $7.34 million. The shares in BETS are held by the Blanket Mine Employee Trust (“Employee Trust”) with Blanket Mine’s employees holding participation units in the Employee Trust; and |
• | donated a 10% ownership interest to the Gwanda Community Share Ownership Trust (“Community Trust”). In addition, Blanket Mine paid a non-refundable donation of $1 million to the Community Trust. |
The Group facilitated the vendor funding of these transactions which is repaid by way of dividends from Blanket Mine. 80% of dividends declared by Blanket Mine are used to repay such loans and the remaining 20% unconditionally accrues to the respective indigenous shareholders. Following a modification to the interest rate on June 23, 2017, outstanding balances on these facilitation loans attract interest at a rate of the lower of a fixed 7.25% per annum payable quarterly or 80% of the Blanket Mine dividend in the quarter. The timing of the loan repayments depends on the future financial performance of Blanket Mine and the extent of future dividends declared by Blanket Mine. The Group related facilitation loans were transferred as dividends in specie intra-group and now the loans and most of the interest thereon is payable to the Company.
Caledonia Mining Corporation Plc
Notes to the Condensed Consolidated Interim Financial Statements
For the period ended September 30, 2024 and 2023
(in thousands of United States Dollars, unless indicated otherwise)
5 | Blanket Zimbabwe Indigenisation Transaction (continued) |
Accounting treatment
The directors of Caledonia Holdings Zimbabwe (Private) Limited (“CHZ”), a wholly-owned subsidiary of the Company, performed an assessment using the requirements of IFRS 10: Consolidated Financial Statements (IFRS 10). It was concluded that CHZ should consolidate Blanket Mine after the indigenisation. The subscription agreements with the indigenous shareholders have been accounted for accordingly as a transaction with non-controlling interests and as a share-based payment transaction.
The subscription agreements, concluded on February 20, 2012, were accounted for as follows:
• | Non-controlling interests (“NCI”) were recognised on the portion of shareholding upon which dividends declared by Blanket Mine will accrue unconditionally to equity holders as follows: |
(a) | 20% of the 16% shareholding of NIEEF; |
(b) | 20% of the 15% shareholding of Fremiro; and |
(c) | 100% of the 10% shareholding of the Community Trust. |
• | This effectively means that NCI was initially recognised at 16.2% of the net assets of Blanket Mine, until the completion of the transaction with Fremiro, whereby the NCI reduced to 13.2% (see below). |
• | The remaining 80% of the shareholding of NIEEF and Fremiro was recognised as NCI to the extent that their attributable share of the net asset value of Blanket Mine exceeds the balance on the facilitation loans, including interest. |
• | The transaction with BETS is accounted for in accordance with IAS 19 Employee Benefits (profit sharing arrangement) as the ownership of the shares does not ultimately pass to the employees. The employees are entitled to participate in 20% of the dividends accruing to the 10% shareholding in Blanket Mine if they are employed at the date of such distribution. To the extent that 80% of the attributable dividends exceeds the balance on the BETS facilitation loan, they will accrue to the employees at the date of such declaration. |
• | BETS is an entity effectively controlled and consolidated by Blanket Mine. Accordingly, the shares held by BETS are effectively treated as treasury shares in Blanket Mine and no NCI is recognised. |
Fremiro purchase agreement
On November 5, 2018 the Company and Fremiro entered into a sale agreement for Caledonia to purchase Fremiro’s 15% shareholding in Blanket Mine. On January 20, 2020 all substantive conditions to the transaction were satisfied. The Company issued 727,266 shares to Fremiro for the cancellation of their facilitation loan and purchase of Fremiro’s 15% shareholding in Blanket Mine. The transaction was accounted for as a repurchase of a previously vested equity instrument. As a result, the Fremiro share of the NCI of $3,600 was derecognised, shares were issued at fair value, the share-based payment reserve was reduced by $2,247 and the Company’s shareholding in Blanket Mine increased to 64% on the effective date.
Caledonia Mining Corporation Plc
Notes to the Condensed Consolidated Interim Financial Statements
For the period ended September 30, 2024 and 2023
(in thousands of United States Dollars, unless indicated otherwise)
5 | Blanket Zimbabwe Indigenisation Transaction (continued) |
Blanket Mine’s indigenisation shareholding percentages and facilitation loan balances
Shareholding | Effective interest & NCI recognised | NCI subject to facilitation loan | Balance of facilitation loan # | |||||||||||||||||
USD | September 30, 2024 | December 31, 2023 | ||||||||||||||||||
NIEEF | 16 | % | 3.2 | % | 12.8 | % | 7,139 | 8,489 | ||||||||||||
Community Trust | 10 | % | 10.0 | % | 0.0 | % | – | – | ||||||||||||
BETS ~ | 10 | % | -* | -* | 3,866 | 4,908 | ||||||||||||||
| 36 | % | 13.2 | % | 12.8 | % | 11,005 | 13,397 | |||||||||||||
* | The shares held by BETS are effectively treated as treasury shares (see above). |
~ | Accounted for under IAS19 Employee Benefits. |
# | Facilitation loans are accounted for as equity instruments and are accordingly not recognised as loans receivable. |
The balance on the facilitation loans is reconciled as follows:
2024 | 2023 | |||||||
Balance at January 1 | 13,397 | 15,026 | ||||||
Interest incurred | 440 | 259 | ||||||
Dividends used to repay loan | (2,832 | ) | (1,888 | ) | ||||
Balance at September 30 | 11,005 | 13,397 | ||||||
6 | Production costs |
2024 | 2023 | |||||||
Blanket Mine | 58,020 | 50,170 | ||||||
Salaries and wages | 22,560 | 20,416 | ||||||
Consumable materials | 18,940 | 16,485 | ||||||
Electricity costs | 10,902 | 8,993 | ||||||
Safety | 806 | 856 | ||||||
Share-based expense (note 9) | 782 | 435 | ||||||
On mine administration | 2,586 | 1,658 | ||||||
Security | 1,037 | 807 | ||||||
Solar operations and maintenance services | 300 | 323 | ||||||
Pre-feasibility exploration costs | 107 | 197 | ||||||
Bilboes | 2,485 | 10,858 | ||||||
Salaries and wages | 866 | 2,323 | ||||||
Consumable materials | 584 | 7,079 | ||||||
Electricity costs | 380 | 516 | ||||||
Share-based expense (note 9) | 46 | – | ||||||
On mine administration | 609 | 940 | ||||||
| 60,505 | 61,028 | |||||||
Caledonia Mining Corporation Plc
Notes to the Condensed Consolidated Interim Financial Statements
For the period ended September 30, 2024 and 2023
(in thousands of United States Dollars, unless indicated otherwise)
7 | Net foreign exchange loss |
The 2024 Monetary Policy Statement issued by the Governor of the Reserve Bank of Zimbabwe (“RBZ”) on April 5, 2024, replaced the RTGS$ with a new currency that co-circulates with other foreign currencies in the Zimbabwean economy, named Zimbabwe Gold (“ZiG”). The ZiG was introduced at a rate of ZiG13.56:US$1 on April 5, 2024 and all RTGS$ balances were converted from RTGS$ to ZiG using an exchange rate of ZiG1: RTGS$2,499.
The official exchange rate of the ZiG weakened from ZiG13.99:US1 to ZiG:US$24.39 on September 27, 2024 and further weakened to ZiG24.88 on September 30, 2024 resulting in significant foreign exchange losses on the ZiG-denominated VAT and Bullion sales receivables (as indicated in the table below).
The retention threshold on gold receipts remained unchanged and gold producers continue to receive 75% of their revenues in US Dollars and the balance in ZiG. The table below illustrates the effect the weakening of the ZiG, RTGS$ and other foreign currencies had on the consolidated statement of profit or loss.
2024 | 2023 | |||||||||||||||||||||||||||||||
ZiG | RTGS$ | Other | Total | ZiG | RTGS$ | Other | Total | |||||||||||||||||||||||||
Unrealised foreign exchange (losses) gains | (671 | ) | – | (841 | ) | (1,512 | ) | – | 1,648 | 829 | 2,477 | |||||||||||||||||||||
Taxation and VAT | (328 | ) | – | – | (328 | ) | – | 3,318 | – | 3,318 | ||||||||||||||||||||||
Other | (343 | ) | – | (841 | ) | (1,184 | ) | – | (1,670 | ) | 829 | (841 | ) | |||||||||||||||||||
Realised foreign exchange (losses) gains | (955 | ) | (6,792 | ) | (23 | ) | (7,770 | ) | – | (4,860 | ) | 49 | (4,811 | ) | ||||||||||||||||||
Bullion sales receivable | (368 | ) | (1,437 | ) | – | (1,805 | ) | – | (2,526 | ) | – | (2,526 | ) | |||||||||||||||||||
Cash and cash equivalents | (2 | ) | (3,006 | ) | (23 | ) | (3,031 | ) | – | (278 | ) | (5 | ) | (283 | ) | |||||||||||||||||
Taxation and VAT receivables | (363 | ) | (1,644 | ) | – | (2,007 | ) | – | (66 | ) | – | (66 | ) | |||||||||||||||||||
Trade and other payables | (222 | ) | (705 | ) | – | (927 | ) | – | (1,990 | ) | 54 | (1,936 | ) | |||||||||||||||||||
Net foreign exchange (losses) gains | (1,626 | ) | (6,792 | ) | (864 | ) | (9,282 | ) | – | (3,212 | ) | 878 | (2,334 | ) | ||||||||||||||||||
Caledonia Mining Corporation Plc
Notes to the Condensed Consolidated Interim Financial Statements
For the period ended September 30, 2024 and 2023
(in thousands of United States Dollars, unless indicated otherwise)
7 | Net foreign exchange loss (continued) |
Sensitivity analysis
As a result of the Group’s monetary assets and liabilities denominated in foreign currencies which is different to the functional currency of the underlying entities, the profit or loss and equity in the underlying entities could be affected by movements between the functional currency and the foreign currency. The table below indicates consolidated monetary assets/(liabilities) in the Group that have a different functional currency and foreign currency.
2024 | ||||||||
$'000 | ||||||||
Functional currency | ||||||||
ZAR | $ | |||||||
Cash and cash equivalents | 62 | 174 | ||||||
USD denominated | 61 | - | ||||||
ZiG denominated | - | 172 | ||||||
GBP denominated | 1 | 2 | ||||||
Trade and other receivables - ZiG denominated | - | 3,835 | ||||||
Trade and other payables - ZiG denominated | - | (358 | ) | |||||
| 62 | 3,651 | |||||||
A strengthening of the ZiG to the US Dollar exchange rate by 45% will affect the cash flows, profit or loss and financial position (in USD) as indicated below, assuming all other variables remain constant for the period to September 30, 2024 or on the date as applicable.
ZiG strengthening by 45% | ||||
Consolidated statement of financial position: | ||||
Cash and cash equivalents | 307 | |||
Trade and other receivables | 6,973 | |||
Trade and other payables | (651 | ) | ||
| 6,629 | ||||
Impact on the consolidated statement of profit or loss and other comprehensive income: | ||||
Foreign exchange gains | 2,980 | |||
Caledonia Mining Corporation Plc
Notes to the Condensed Consolidated Interim Financial Statements
For the period ended September 30, 2024 and 2023
(in thousands of United States Dollars, unless indicated otherwise)
7 | Net foreign exchange loss (continued) |
Sensitivity analysis (continued)
A weakening of the ZiG to the US Dollar exchange rate by 45% will affect the cash flows, profit or loss and financial position (in USD) as indicated below, assuming all other variables remain constant for the period to September 30, 2024 or on the date as applicable.
ZiG weakening by 45% | ||||
Consolidated statement of financial position: | ||||
Cash and cash equivalents | 115 | |||
Trade and other receivables | 2,645 | |||
Trade and other payables | (246 | ) | ||
| 2,514 | ||||
Impact on the consolidated statement of profit or loss and other comprehensive income: | ||||
Foreign exchange losses | (1,135 | ) | ||
8 | Administrative expenses |
2024 | 2023 | |||||||
Investor relations | 364 | 492 | ||||||
Audit fee | 182 | 211 | ||||||
Advisory services fees | 1,289 | 4,104 | ||||||
Listing fees | 441 | 677 | ||||||
Directors fees – Company | 511 | 480 | ||||||
Directors fees – Blanket | 53 | 42 | ||||||
Employee costs | 5,592 | 4,262 | ||||||
Employee costs – settlements group | 114 | – | ||||||
Other office administration cost | 196 | 267 | ||||||
Information technology and communication cost – Group related | 206 | 203 | ||||||
Management liability insurance | 679 | 676 | ||||||
Travel costs | 602 | 476 | ||||||
| 10,229 | 11,890 | |||||||
Caledonia Mining Corporation Plc
Notes to the Condensed Consolidated Interim Financial Statements
For the period ended September 30, 2024 and 2023
(in thousands of United States Dollars, unless indicated otherwise)
9 | Share-based payments |
9.1 | Cash-settled share-based payments |
(a) | Restricted Share Units and Performance Units |
Certain management and employees within the Group are granted Restricted Share Units (“RSUs”) and Performance Units (”PUs”) pursuant to provisions of the 2015 Omnibus Equity Incentive Compensation Plan (“OEICP”). All RSUs and PUs were granted and approved at the discretion of the Compensation Committee of the Board of Directors.
RSUs vest three years after grant date given that the service conditions of the relevant employees have been fulfilled. The value of the vested RSUs is the number of RSUs vested multiplied by the fair market value of the Company’s shares, as specified by the OEICP, on the date of settlement.
PUs have a performance condition, determined on their grant date, based on gold production, average normalised controllable cost per ounce of gold, resource development at Blanket Mine, financing and construction of Bilboes sulphide project and a performance period of one to three years. The number of PUs that vest will be the relevant portion of the PUs granted multiplied by the performance multiplier, which will reflect the actual performance in terms of the performance conditions compared to expectations on the date of the award.
RSU holders are entitled to receive dividends over the vesting period. Such dividends will be reinvested in additional RSUs at the then applicable share price. PUs have rights to dividends only after they have vested.
RSUs and PUs allow for settlement of the vesting date value in cash or, subject to conditions, shares issuable at fair market value or a combination of both at the discretion of the unitholder.
The fair value of the RSUs at the reporting date was based on the Black Scholes option valuation model less the fair value of the expected dividends during the vesting period multiplied by the performance multiplier expectation. The fair value of the PUs at the reporting date was based on the Black Scholes option valuation model. At the reporting date it was assumed that there is a 95%-106% probability that the performance conditions will be met and therefore a 95%-106% (2023: 93%-100%) average performance multiplier was used in calculating the estimated liability.
The liability as at September 30, 2024 amounted to $1,664 ( December 31, 2023: $1,294). Included in the liability as at September 30, 2024 is an amount of $665 (2023: $435) that was expensed and classified as production costs; refer to note 6.
The cash-settled share-based expense for PUs for the period amounted to $479 (2023: $298). During the period PUs to the value of $83 were settled in share capital (net of employee tax) (2023: $351) with the employee tax portion recognised in profit or loss.
Caledonia Mining Corporation Plc
Notes to the Condensed Consolidated Interim Financial Statements
For the period ended September 30, 2024 and 2023
(in thousands of United States Dollars, unless indicated otherwise)
9 | Share-based payments (continued) |
9.1 | Cash-settled share-based payments (continued) |
(a) | Restricted Share Units and Performance Units (continued) |
The following assumptions were used in estimating the fair value of the cash-settled share-based payment liability on:
September 30, 2024 | December 31, 2023 | |||||||
PUs | PUs | |||||||
Risk free rate | 3.81 | % | 3.88 | % | ||||
Fair value (USD) | 14.96 | 12.20 | ||||||
Share price (USD) | 14.96 | 12.20 | ||||||
Performance multiplier percentage | 95% - 106 | % | 93-100 | % | ||||
Volatility | 0.83 | 0.90 | ||||||
| January exercise price – 2020 awards (USD) | - | 13.10 | ||||||
| January exercise price – 2021 awards (USD) | 11.89 | 13.10 | ||||||
| January exercise price – 2022 awards (USD) | 11.89 | 13.10 | ||||||
| April exercise price – 2023 awards (USD) | 10.87 | - | ||||||
| Share units granted: | PUs | PUs | ||||||
Grant - January 11, 2021 | 35,341 | 56,244 | ||||||
Grant - May 14, 2021 | 482 | 964 | ||||||
Grant - June 1, 2021 | 375 | 1,310 | ||||||
Grant - June 14, 2021 | 199 | 398 | ||||||
Grant - September 6, 2021 | 229 | 458 | ||||||
Grant - September 20, 2021 | 230 | 460 | ||||||
Grant - October 1, 2021 | 508 | 1,016 | ||||||
Grant - October 11, 2021 | 225 | 450 | ||||||
Grant - November 12, 2021 | 923 | 1,846 | ||||||
Grant - December 1, 2021 | 225 | 900 | ||||||
Grant - January 11, 2022 | 41,383 | 75,198 | ||||||
Grant - January 12, 2022 | 556 | 825 | ||||||
Grant - May 13, 2022 | 1,894 | 2,040 | ||||||
Grant - June 1, 2022 | – | 1,297 | ||||||
Grant - July 1, 2022 | 1,899 | 2,375 | ||||||
Grant - October 1, 2022 | 1,800 | 2,024 | ||||||
Grant - April 7, 2023 | 73,462 | 79,521 | ||||||
Grant - May 15, 2023 | – | 581 | ||||||
Grant - June 1, 2023 | 617 | 617 | ||||||
Grant - June 7, 2023 | 572 | 572 | ||||||
Grant - August 10, 2023 | 5,514 | 5,514 | ||||||
Grant - September 1, 2023 | 1,617 | 1,617 | ||||||
Grant - October 3, 2023 | 14,258 | 14,258 | ||||||
Grant - April 8, 2024 | 169,141 | – | ||||||
Grant - June 10, 2024 | 1,406 | – | ||||||
Grant - June 17, 2024 | 1,155 | – | ||||||
Grant - July 1, 2024 | 1,461 | – | ||||||
Grant - August 12, 2024 | 1,554 | – | ||||||
Settlements/ terminations | (154,510 | ) | (68,171 | ) | ||||
Total awards outstanding | 202,516 | 182,314 | ||||||
Caledonia Mining Corporation Plc
Notes to the Condensed Consolidated Interim Financial Statements
For the period ended September 30, 2024 and 2023
(in thousands of United States Dollars, unless indicated otherwise)
9 | Share-based payments (continued) |
9.2 | Equity-settled share-based payments |
(a) | EPUs |
PUs which are classified as equity-settled (i.e. there is no option to vest in cash) (“EPUs”) have a performance condition, determined on their grant date, based on gold production, average normalised controllable cost per ounce of gold, resource development at Blanket Mine, financing and construction of Bilboes sulphide project and a performance period of three years. The number of EPUs that vest will be the relevant portion of the EPUs granted multiplied by the performance multiplier, which will reflect the actual performance in terms of the performance conditions compared to expectations on the date of the award.
EPUs have rights to dividends only after they have vested.
The shares issued are subject to a minimum holding period of until at least the first anniversary of the EPUs vesting date. The fair value of the EPUs at the reporting date was based on the Black Scholes option valuation model less the fair value of the expected dividends during the vesting period multiplied by the performance percentage. At the reporting date it was assumed that there is a 47% - 105% probability that the performance conditions will be met and therefore a 47% - 105% performance multiplier was used in calculating the expense. The equity-settled share-based expense for EPUs as at September 30, 2024 amounted to $384 (2023: $564). An amount of $163 (2023: $Nil) was expensed and classified as production costs; refer to note 6.
The following assumptions were used in estimating the fair value of the equity-settled share-based payment that are in issue on:
Grant date | January 24, 2022 | April 7, 2023 | April 8, 2024 | May 13, 2024 | ||||||||||||
Number of units - remaining at reporting date | 113,693 | 80,773 | 125,433 | 14,771 | ||||||||||||
Share price (USD) - grant date | 11.50 | 16.91 | 10.95 | 10.01 | ||||||||||||
Fair value (USD) - grant date | 10.15 | 15.33 | 9.53 | 10.02 | ||||||||||||
Performance multiplier percentage at grant date | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
(b) | Equity Restricted Share Units |
RSUs which are classified as equity-settled (i.e. there is no option to vest in cash) (“ERSUs”) vest on the date as specified in the RSUs agreement given that the service conditions of the relevant employees have been fulfilled. The value of the vested RSUs is the number of RSUs vested multiplied by the fair market value of the Company’s shares, as specified by the OEICP, on the date of settlement.
ERSU holders are entitled to receive dividends over the vesting period. Such dividends will be reinvested in additional ERSUs at the then applicable share price. The fair value of the RSUs at the reporting date was based on the Black Scholes option valuation model less the fair value of the expected dividends during the vesting period multiplied by the performance multiplier expectation.
Caledonia Mining Corporation Plc
Notes to the Condensed Consolidated Interim Financial Statements
For the period ended September 30, 2024 and 2023
(in thousands of United States Dollars, unless indicated otherwise)
9 | Share-based payments (continued) |
9.2 | Equity-settled share-based payments (continued) |
(b) | Equity Restricted Share Units (continued) |
The following assumptions were used in estimating the fair value of the equity-settled share-based payment that are in issue on:
Grant date | May 13, 2024 | |||
Vesting date | September 30, 2024 | |||
Number of units - remaining at reporting date | 26,404 | |||
Share price (USD) - grant date | 10.01 | |||
Fair value (USD) - grant date | 10.02 | |||
Performance multiplier percentage at grant date | 100 | % | ||
The equity-settled share-based expense for ERSUs as at September 30, 2024 amounted to $401 (2023: $Nil). During the period ERSUs to the value of $220 were settled in share capital (net of employee tax) with the employee tax portion recognised in profit or loss.
10 | Other expenses |
2024 | 2023 | |||||||
Intermediated Money Transaction Tax* | 969 | 999 | ||||||
Community and social responsibility cost | 988 | 923 | ||||||
Retirement benefits @ | 2,121 | – | ||||||
Impairment of property, plant and equipment (note 13) | – | 878 | ||||||
| 4,078 | 2,800 | |||||||
* | Intermediated Money Transfer Tax ("IMTT”) is tax chargeable in Zimbabwe on transfer of physical money, electronically or by any other means and charged at 2% per transaction performed in Zimbabwe. |
@ | Caledonia awarded discretionary payments to selected employees at Blanket Mine and Bilboes over 60 years of age as retirement benefits that are expected to result in an expected outflow of $2.1m in fiscal 2024 (excluding Share-based payment awards granted that remained unaffected). Group related retirements were classified as administrative expenses. |
11 | Finance income and finance cost |
2024 | 2023 | |||||||
Finance income received - Bank | 16 | 30 | ||||||
Unwinding of rehabilitation provision - Blanket (note 20) | 198 | 279 | ||||||
Unwinding of rehabilitation provision - Solar | 5 | – | ||||||
Finance cost - Leases | 7 | 15 | ||||||
Finance cost - Overdraft and short term loans | 1,359 | 1,076 | ||||||
Finance cost - Solar loan notes payable (note 21.1) | 624 | 373 | ||||||
Finance cost - Motapa loan notes payable | – | 619 | ||||||
Finance cost - Long term loans | 167 | – | ||||||
| 2,360 | 2,362 | |||||||
Caledonia Mining Corporation Plc
Notes to the Condensed Consolidated Interim Financial Statements
For the period ended September 30, 2024 and 2023
(in thousands of United States Dollars, unless indicated otherwise)
12 | Exploration and evaluation assets |
Bilboes Gold | Motapa | Maligreen | GG | Sabiwa | Abercorn | Valentine | Total | |||||||||||||||||||||||||
Balance at January 1, 2023 | – | 7,844 | 5,626 | 3,723 | 294 | 27 | 65 | 17,579 | ||||||||||||||||||||||||
Acquisition costs: | ||||||||||||||||||||||||||||||||
- Bilboes Gold | 73,198 | – | – | – | – | – | – | 73,198 | ||||||||||||||||||||||||
Decommissioning asset estimation adjustment | – | 1,466 | 152 | – | – | – | – | 1,618 | ||||||||||||||||||||||||
Exploration costs: | ||||||||||||||||||||||||||||||||
- Consumables and drilling | – | 903 | 102 | – | – | – | – | 1,005 | ||||||||||||||||||||||||
- Contractor | – | 2 | – | – | – | – | – | 2 | ||||||||||||||||||||||||
- Labour | – | 377 | 111 | – | – | – | – | 488 | ||||||||||||||||||||||||
- Power | – | – | 7 | – | – | – | – | 7 | ||||||||||||||||||||||||
- Other | 375 | – | – | – | – | – | – | 375 | ||||||||||||||||||||||||
Balance at December 31, 2023 | 73,573 | 10,592 | 5,998 | 3,723 | 294 | 27 | 65 | 94,272 | ||||||||||||||||||||||||
Decommissioning asset estimation adjustment* | – | (899 | ) | – | – | – | – | – | (899 | ) | ||||||||||||||||||||||
Exploration costs: | ||||||||||||||||||||||||||||||||
- Consumables and drilling | – | 1,266 | 19 | – | – | – | – | 1,285 | ||||||||||||||||||||||||
- Contractor | – | 14 | 5 | – | – | – | – | 19 | ||||||||||||||||||||||||
- Labour | – | 421 | – | 51 | – | – | – | 472 | ||||||||||||||||||||||||
- Power | – | 2 | 3 | – | – | – | – | 5 | ||||||||||||||||||||||||
- Other | 609 | 67 | – | – | – | – | – | 676 | ||||||||||||||||||||||||
Balance at September 30, 2024 | 74,182 | 11,463 | 6,025 | 3,774 | 294 | 27 | 65 | 95,830 | ||||||||||||||||||||||||
* | After further review of the Motapa claims the old tailings storage facility, previously included in the rehabilitation liability, is not within the Caledonia claims area. The tailing storage facility was subsequently excluded from the rehabilitation liability footprint. Refer to note 20 for more information. |
Caledonia Mining Corporation Plc
Notes to the Condensed Consolidated Interim Financial Statements
For the period ended September 30, 2024 and 2023
(in thousands of United States Dollars, unless indicated otherwise)
13 | Property, plant and equipment |
Cost | Land and buildings | Right of use assets | Mine development, infrastructure and other | Assets under construction and decommissioning assets | Plant and equipment | Furniture and fittings | Motor vehicles | Solar plant& | Total | |||||||||||||||||||||||||||
Balance at January 1, 2023 | 15,194 | 525 | 82,154 | 46,453 | 70,485 | 1,563 | 3,314 | 14,138 | 233,826 | |||||||||||||||||||||||||||
Additions* | – | – | – | 28,276 | 538 | 335 | 294 | 163 | 29,606 | |||||||||||||||||||||||||||
Impairments | – | – | (872 | ) | – | (36 | ) | – | – | – | (908 | ) | ||||||||||||||||||||||||
Disposals | – | – | – | – | (33 | ) | – | – | – | (33 | ) | |||||||||||||||||||||||||
Reallocate to assets held for sale | – | – | – | – | – | – | – | (14,301 | ) | (14,301 | ) | |||||||||||||||||||||||||
Reallocations between asset classes | 1,492 | – | 37,116 | (39,099 | ) | 491 | – | – | – | – | ||||||||||||||||||||||||||
Foreign exchange movement | – | (24 | ) | – | (2 | ) | – | (37 | ) | (3 | ) | – | (66 | ) | ||||||||||||||||||||||
Balance at December 31, 2023 | 16,686 | 501 | 118,398 | 35,628 | 71,445 | 1,861 | 3,605 | – | 248,124 | |||||||||||||||||||||||||||
Additions* | – | – | 128 | 15,151 | 790 | 53 | – | – | 16,122 | |||||||||||||||||||||||||||
Disposals | – | – | – | – | – | (3 | ) | (128 | ) | – | (131 | ) | ||||||||||||||||||||||||
Reallocations between asset classes | – | – | 14,048 | (13,504 | ) | (544 | ) | – | – | – | – | |||||||||||||||||||||||||
Foreign exchange movement | – | 22 | – | 24 | – | 41 | 3 | – | 90 | |||||||||||||||||||||||||||
Balance at September 30, 2024 | 16,686 | 523 | 132,574 | 37,299 | 71,691 | 1,952 | 3,480 | – | 264,205 | |||||||||||||||||||||||||||
* | Included in additions is the change in estimate for the decommissioning asset of ($722) (2023: $1,962) due to change in the Life of Mine (“LoM”) estimate to 2041. |
& | The solar plant was fully commissioned on February 2, 2023 and the sale agreement between Caledonia Mining Corporation Plc and Caledonia Mining Services (Private) Limited was concluded for the sale of the solar plant. Depreciation on the solar plant commenced on February 2, 2023 and the power purchase agreement, between Caledonia Mining Services (Private) Limited and Blanket Mine, became effective. From September 28, 2023 the solar plant is classified as held for sale. In December 2022, the Caledonia board approved a proposal for Caledonia Mining Services (Private) Limited (which owns the solar plant) to issue loan notes pursuant to a loan note instrument (“bonds”) up to a value of $12 million. The decision was taken in order to optimise the capital structure of the Group and provide additional debt instruments to the Zimbabwean financial market. Refer to note 21.1 for more information on these loan notes. |
Caledonia Mining Corporation Plc
Notes to the Condensed Consolidated Interim Financial Statements
For the period ended September 30, 2024 and 2023
(in thousands of United States Dollars, unless indicated otherwise)
13 | Property, plant and equipment (continued) |
Accumulated depreciation and Impairment losses | Land and buildings | Right of use assets | Mine development, infrastructure and other | Assets under construction and decommissioning assets | Plant and equipment | Furniture and fittings | Motor vehicles | Solar plant | Total | |||||||||||||||||||||||||||
Balance at January 1, 2023 | 8,350 | 230 | 12,368 | 693 | 29,257 | 1,100 | 2,845 | – | 54,843 | |||||||||||||||||||||||||||
Depreciation for the year | 1,012 | 124 | 5,459 | 93 | 6,573 | 185 | 258 | 782 | 14,486 | |||||||||||||||||||||||||||
Accumulated depreciation for assets reallocated to assets held for sale | – | – | – | – | – | – | – | (782 | ) | (782 | ) | |||||||||||||||||||||||||
Accumulated depreciation impairments | – | – | (21 | ) | – | (10 | ) | – | – | – | (31 | ) | ||||||||||||||||||||||||
Foreign exchange movement | – | (9 | ) | – | – | – | (30 | ) | (2 | ) | – | (41 | ) | |||||||||||||||||||||||
Balance at December 31, 2023 | 9,362 | 345 | 17,806 | 786 | 35,820 | 1,255 | 3,101 | – | 68,475 | |||||||||||||||||||||||||||
Depreciation for the period | 830 | 95 | 5,345 | 70 | 5,471 | 131 | 164 | – | 12,106 | |||||||||||||||||||||||||||
Disposals | – | – | – | – | – | (2 | ) | (95 | ) | – | (97 | ) | ||||||||||||||||||||||||
Foreign exchange movement | – | 20 | – | – | – | 35 | 3 | – | 58 | |||||||||||||||||||||||||||
Balance at September 30, 2024 | 10,192 | 460 | 23,151 | 856 | 41,291 | 1,419 | 3,173 | – | 80,542 | |||||||||||||||||||||||||||
Carrying amounts | ||||||||||||||||||||||||||||||||||||
At December 31, 2023 | 7,324 | 156 | 100,592 | 34,842 | 35,625 | 606 | 504 | – | 179,649 | |||||||||||||||||||||||||||
At September 30, 2024 | 6,494 | 63 | 109,423 | 36,443 | 30,400 | 533 | 307 | – | 183,663 | |||||||||||||||||||||||||||
Caledonia Mining Corporation Plc
Notes to the Condensed Consolidated Interim Financial Statements
For the period ended September 30, 2024 and 2023
(in thousands of United States Dollars, unless indicated otherwise)
14 | Inventories |
2024 | December 31, | |||||||
Consumable stores* | 21,508 | 18,001 | ||||||
Gold in progress @ | 1,224 | 2,303 | ||||||
| 22,732 | 20,304 | |||||||
* | Included in consumables stores is an amount of ($1,793) ( December 31, 2023: ($1,793)) for provision for obsolete stock for items that are not compatible with plant and equipment currently in use. |
@ | Gold work in progress balance as at September 30, 2024 consists of 1,320 ounces ( December 31, 2023: 3,057 ounces). |
15 | Trade and other receivables |
2024 | December 31, | |||||||
Bullion sales receivable | 4,171 | 5,403 | ||||||
VAT receivables | 5,234 | 4,259 | ||||||
Deposits for stores, equipment and other receivables | 43 | 290 | ||||||
Other financial assets | 203 | – | ||||||
| 9,651 | 9,952 | |||||||
The carrying value of trade receivables is considered a reasonable approximation of fair value and are short term in nature. No provision for expected credit losses was recognised in the current or prior period as none of the debtors were past due and there has been no doubtful debt on debtors. Up to the date of approval of these financial statements all of the outstanding bullion sales receivable were settled in full. The Company allocated the VAT receivables equating to $1.8 million in the period against liabilities due for the period Quarterly Payment Dates (“QPD’s”) administrated by the Zimbabwe Revenue Authority.
16 | Prepayments |
2024 | December 31, | |||||||
Caledonia Mining South Africa (Proprietary) Limited (“CMSA”) suppliers | 1,398 | 527 | ||||||
Blanket Mine third party suppliers - USD | 2,196 | 808 | ||||||
Blanket Mine third party suppliers - ZiG | 2,796 | – | ||||||
Blanket Mine third party suppliers - RTGS$ | – | 938 | ||||||
Other prepayments | 327 | 265 | ||||||
| 6,717 | 2,538 | |||||||
Caledonia Mining Corporation Plc
Notes to the Condensed Consolidated Interim Financial Statements
For the period ended September 30, 2024 and 2023
(in thousands of United States Dollars, unless indicated otherwise)
17 | Cash and cash equivalents |
2024 | December 31, | |||||||
Bank balances | 7,204 | 4,252 | ||||||
Restricted cash | – | 2,456 | ||||||
Cash and cash equivalents | 7,204 | 6,708 | ||||||
Bank overdrafts and short term loans used for cash management purposes | (14,839 | ) | (17,740 | ) | ||||
Net cash and cash equivalents | (7,635 | ) | (11,032 | ) | ||||
| Loan initiated | Expiry | Repayment term | Principal value | Balance drawn at September 30, 2024 | ||||||
Overdraft facilities and term loans | ||||||||||
Stanbic Bank - ZiG | June2023 | June 2025 | On demand | ZiG6.5 million | Nil | |||||
Stanbic Bank - USD | June 2024 | June 2025 | On demand | $4 million | $3.9 million | |||||
CABS – USD | March 2024 | March 2027 | On demand | $3 million | $1.2 million | |||||
Ecobank - USD | March 2024 | February 2025 | On demand | $4 million | $3.8 million | |||||
Nedbank Zimbabwe - USD | April 2024 | April 2025 | On demand | $7 million | $5.9 million | |||||
| $18 million | $14.8 million |
18 | Assets and liabilities associated with assets held for sale |
2024 | December 31, | |||||||
Non-current assets held for sale | ||||||||
Solar plant | 13,483 | 13,519 | ||||||
Liabilities associated with assets held for sale | ||||||||
Site restoration liability | 98 | 128 | ||||||
In the second quarter of 2023 management embarked on a marketing process to locate a buyer for the Company’s solar plant located next to Blanket Mine. Various offers were received and a counterparty with a non-binding offer was given exclusivity to further negotiate the sale of the plant after proving their ability to operate and fund solar plants of similar size and complexity in Africa. The offer was received from a reputable global renewable energy operator and management is in an advanced stage of executing agreements to sell the solar plant. It is proposed that the new owners will exclusively supply Blanket with electricity from the plant, on a take-or-pay basis and in doing so secure Blanket’s future power supply. This has the benefit of realising a cash profit on the sale of the plant and generate cash for reinvestment in our gold projects. In addition, management can focus on Caledonia’s core business of gold mining.
On September 28, 2023 the Board approved for management to negotiate the sale of the solar plant with the potential buyer. The assets were available for sale in their condition on September 28, 2023 and therefore met the criteria to be classified as held for sale.
Management determined the value of the solar plant as the lower of the fair value less cost to sell and the carrying amount. The proceeds of the disposal are expected to substantially exceed the carrying amount of the related net assets and accordingly no impairment losses have been recognised on the classification of the solar plant. The asset was classified as property, plant and equipment before the reclassification to assets held for sale.
Caledonia Mining Corporation Plc
Notes to the Condensed Consolidated Interim Financial Statements
For the period ended September 30, 2024 and 2023
(in thousands of United States Dollars, unless indicated otherwise)
18 | Assets and liabilities associated with assets held for sale (continued) |
The change in estimate for the liability held for sale is mainly due to the Blanket Mine’s LoM that was extended to 2041 (that is inclusive of inferred resources and is based on an internal estimate representing management’s best estimate of the LoM inclusive of the latest drilling results).
Caledonia announced on October 1, 2024 that it has signed a conditional sale agreement for the entire issued share capital of its Zimbabwe subsidiary, Caledonia Mining Services (Private) Limited ("CMS"), which owns and operates the 12.2MWac solar plant that supplies power to Blanket Mine. CMS is to be sold to CrossBoundary Energy Holdings ("CBE") for $22.4 million, subject to the fulfilment of outstanding conditions precedent. The purchase consideration of $22.4 million is payable in cash, and the power generation of the solar plant will continue to be sold to Blanket Mine by way of a power purchase agreement. Upon completion of the sale, Caledonia will realise a pre-tax profit of $8.1 million on the $14.3 million construction cost of the solar plant.
19 | Share capital |
Authorised
Unlimited number of ordinary shares of no par value.
Unlimited number of preference shares of no par value.
Issued ordinary shares
Number of fully paid shares | Amount | |||||||
January 1, 2023 | 12,833,126 | 83,471 | ||||||
Shares issued: | ||||||||
- share-based payment - employees (note 9.1(a)) | 24,389 | 351 | ||||||
- equity raise | 1,207,514 | 15,569 | ||||||
- Bilboes Gold Limited acquisition | 5,123,044 | 65,677 | ||||||
December 31, 2023 | 19,188,073 | 165,068 | ||||||
Shares issued: | ||||||||
- share-based payment - employees (note 9.1(a)) | 6,787 | 83 | ||||||
- share-based payment - employees (note 9.2(b)) | 14,694 | 220 | ||||||
- options exercised* | 5,000 | 37 | ||||||
September 30, 2024 | 19,214,554 | 165,408 | ||||||
* | A consultant of Caledonia signed his option exercise notice on June 14, 2024 to purchase 5,000 shares at the exercise price of $7.35 per option share. |
Caledonia Mining Corporation Plc
Notes to the Condensed Consolidated Interim Financial Statements
For the period ended September 30, 2024 and 2023
(in thousands of United States Dollars, unless indicated otherwise)
20 | Provisions |
Site restoration
Site restoration relates to the estimated cost of closing down the mines and projects and represent the site and environmental restoration costs, estimated to be paid as a result of mining activities or previous mining activities. For the Blanket Mine site restoration costs are capitalised in property, plant and equipment with an increase in the provision at the net present value of the estimated future and inflated cost of site rehabilitation. Subsequently the capitalised cost is amortised over the life of the mine and the provision is unwound over the period to estimated restoration. For properties in the exploration and evaluation phase, such as the Bilboes, Maligreen and Motapa projects, site restoration costs are capitalised in exploration and evaluation assets with an increase in the provision at the undiscounted value of the estimated cost of site rehabilitation. Subsequently the costs capitalised are not amortised and the provision is not unwound.
Reconciliation of site restoration provision | September 30, 2024 | December 31, 2023 | ||||||
Blanket Mine | ||||||||
Balance January 1 | 4,766 | 2,823 | ||||||
Unwinding of discount (note 12) | 198 | 109 | ||||||
Change in estimate (Blanket) (note 13)* | (722 | ) | 1,834 | |||||
Balance | 4,242 | 4,766 | ||||||
Motapa, Maligreen and Bilboes | ||||||||
Balance January 1 | 6,219 | 135 | ||||||
Change in estimate (Motapa) (note 12)@ | (899 | ) | 1,466 | |||||
Change in estimate (Maligreen) (note 12) | – | 152 | ||||||
Acquisition - Bilboes | – | 4,466 | ||||||
Balance | 5,320 | 6,219 | ||||||
Total balance | 9,562 | 10,985 | ||||||
Current | – | – | ||||||
Non-current | 9,562 | 10,985 | ||||||
| 9,562 | 10,985 | |||||||
* | The change in estimate is due the Blanket Mine’s LoM that was extended to 2041 (that is inclusive of inferred resources and it based on an internal estimate representing management’s best estimate of the LoM inclusive of the latest drilling results). |
@ | After further review of the Motapa claims the old tailings storage facility, previously included in the rehabilitation liability, is not within the Caledonia claims area. The tailing storage facility was subsequently excluded from the rehabilitation liability footprint. |
The discount rate in calculating the present value of the Blanket Mine provision is 4.19% (2023: 4.14%) and is based on a risk-free rate and cash flows are estimated at an average 2.14% inflation (2023: 2.40%). The gross rehabilitation costs, before discounting, amounted to $5,950 (2023: $5,629) for Blanket Mine as at September 30, 2024.
The undiscounted gross rehabilitation costs for exploration and evaluation assets as at September 30, 2024, amounted to $4,466 (2023: $4,466) for Bilboes Holdings, $567 (2023: $1,466) for Motapa and $287 (2023: $287) for Maligreen.
Caledonia Mining Corporation Plc
Notes to the Condensed Consolidated Interim Financial Statements
For the period ended September 30, 2024 and 2023
(in thousands of United States Dollars, unless indicated otherwise)
21 | Loan note instruments |
Loan note instruments - finance costs | 2024 | 2023 | ||||||||||
Solar loan notes | 21.1 | 624 | 373 | |||||||||
Motapa loan notes | – | 619 | ||||||||||
| 624 | 992 | |||||||||||
Loan note instruments - financial liabilities | 2024 | December 31, | ||||||||||
Solar loan notes | 21.1 | 9,137 | 7,112 | |||||||||
| 9,137 | 7,112 | |||||||||||
Current | 855 | 665 | ||||||||||
Non-current | 8,282 | 6,447 | ||||||||||
| 9,137 | 7,112 | |||||||||||
21.1 | Solar loan notes |
Following the commissioning of Caledonia’s wholly owned solar plant on February 2, 2023, the decision was taken to optimise the capital structure of the Group and provide additional debt instruments to the Zimbabwean financial market by way of issuing loan notes pursuant to a loan note instrument (“bonds”). The bonds were issued by the Zimbabwean registered entity owning the solar plant, Caledonia Mining Services (Private) Limited. The bonds carry a fixed interest rate of 9.5% payable bi-annually and have a tenure of 3 years from the date of issue. The bond repayments are guaranteed by the Company. $9 million of bonds were in issue at the date of approval of these financial statements. All bonds were issued to Zimbabwean registered commercial entities. Subsequently these bonds were transferred to Caledonia Holdings Zimbabwe (Private) Limited (“CHZ”) a subsidiary of the Company, except for the bond issued in April 2024 that were directly issued to CHZ.
A summary of the bonds is as follows:
2024 | December 31, | |||||||
Opening balance | 7,112 | – | ||||||
Amounts received | 2,000 | 7,000 | ||||||
Transaction costs | (61 | ) | (105 | ) | ||||
Finance cost accrued | 624 | 549 | ||||||
Repayment - finance cost paid | (538 | ) | (332 | ) | ||||
Closing balance | 9,137 | 7,112 | ||||||
Caledonia Mining Corporation Plc
Notes to the Condensed Consolidated Interim Financial Statements
For the period ended September 30, 2024 and 2023
(in thousands of United States Dollars, unless indicated otherwise)
22 | Trade and other payables |
2024 | December 31, | |||||||
Trade payables | 4,283 | 6,166 | ||||||
Electricity accrual | 3,871 | 2,676 | ||||||
Audit fee | 314 | 395 | ||||||
Dividends due | 2,422 | 1,048 | ||||||
Other payables | 990 | 692 | ||||||
Financial liabilities | 11,880 | 10,977 | ||||||
Production and management bonus accrual - Blanket Mine | (2 | ) | 214 | |||||
Other employee benefits - other | 1,844 | 2,229 | ||||||
Other employee benefits - settlements | - | 1,588 | ||||||
Leave pay | 3,898 | 2,655 | ||||||
Bonus provision | 591 | 190 | ||||||
Accruals | 4,067 | 2,650 | ||||||
Non-financial liabilities | 10,398 | 9,526 | ||||||
Total | 22,278 | 20,503 | ||||||
23 | Cash flow information |
Non-cash items and information presented separately on the statements of cash flows statement:
2024 | 2023 | |||||||
Operating profit | 31,077 | 12,577 | ||||||
Adjustments for: | ||||||||
Impairment of property, plant and equipment (note 13) | – | 878 | ||||||
Unrealised foreign exchange gains (note 7) | 1,512 | (2,477 | ) | |||||
Fair value loss on derivative instruments | 496 | 590 | ||||||
Cash-settled share-based expense (note 9.1) | 479 | 298 | ||||||
Share-based expense included in production costs (note 6) | 828 | 435 | ||||||
Cash portion of cash-settled share-based expense | (691 | ) | (1,695 | ) | ||||
Equity-settled share-based expense (note 9.2) | 785 | 564 | ||||||
Cash portion of equity-settled share-based expense (note 9.2(b)) | (181 | ) | – | |||||
Depreciation (note 13) | 12,106 | 10,049 | ||||||
Loss on disposal of property, plant and equipment | 34 | – | ||||||
Cash generated from operations before working capital changes | 46,445 | 21,219 | ||||||
Inventories | (2,278 | ) | 516 | |||||
Prepayments | (2,591 | ) | 3,253 | |||||
Trade and other receivables | (514 | ) | (3,537 | ) | ||||
Trade and other payables | (2,132 | ) | (3,822 | ) | ||||
Cash generated from operations | 38,930 | 17,629 | ||||||
Caledonia Mining Corporation Plc
Notes to the Condensed Consolidated Interim Financial Statements
For the period ended September 30, 2024 and 2023
(in thousands of United States Dollars, unless indicated otherwise)
24 | Operating Segments |
Information about reportable segments
For the nine months ended September 30, 2024 | Blanket | South Africa | Bilboes oxide mine | E&E projects | Inter-group eliminations adjustments | Corporate and other reconciling amounts | Total | |||||||||||||||||||||
Revenue | 132,850 | – | 2,653 | – | – | – | 135,503 | |||||||||||||||||||||
Inter-segmental revenue | – | 12,155 | – | – | (12,155 | ) | – | – | ||||||||||||||||||||
Royalty | (6,698 | ) | – | (133 | ) | – | – | – | (6,831 | ) | ||||||||||||||||||
Production costs | (57,696 | ) | (11,009 | ) | (2,485 | ) | – | 10,698 | (13 | ) | (60,505 | ) | ||||||||||||||||
Depreciation | (12,692 | ) | (102 | ) | – | – | 721 | (33 | ) | (12,106 | ) | |||||||||||||||||
Net foreign exchange (loss) gain | (8,353 | ) | 245 | (64 | ) | – | (65 | ) | (1,045 | ) | (9,282 | ) | ||||||||||||||||
Administrative expenses | (698 | ) | (2,577 | ) | (30 | ) | (7 | ) | 7 | (6,924 | ) | (10,229 | ) | |||||||||||||||
Net derivative financial instrument expense | – | – | – | – | – | (496 | ) | (496 | ) | |||||||||||||||||||
Equity-settled share-based expense | – | – | – | – | – | (785 | ) | (785 | ) | |||||||||||||||||||
Cash-settled share-based expense | – | – | – | – | – | (479 | ) | (479 | ) | |||||||||||||||||||
Other expenses | (3,908 | ) | – | (170 | ) | – | – | – | (4,078 | ) | ||||||||||||||||||
Other income | 160 | 1 | 1 | – | (8 | ) | 211 | 365 | ||||||||||||||||||||
Management fee | (2,373 | ) | 2,373 | – | – | – | – | – | ||||||||||||||||||||
Finance income | – | 467 | – | – | (1,770 | ) | 1,319 | 16 | ||||||||||||||||||||
Finance cost | (2,579 | ) | (5 | ) | (296 | ) | (82 | ) | 1,768 | (1,166 | ) | (2,360 | ) | |||||||||||||||
Profit (loss) before tax | 38,013 | 1,548 | (524 | ) | (89 | ) | (804 | ) | (9,411 | ) | 28,733 | |||||||||||||||||
Tax expense | (11,361 | ) | (459 | ) | (5 | ) | – | 20 | (476 | ) | (12,281 | ) | ||||||||||||||||
Profit (loss) after tax | 26,652 | 1,089 | (529 | ) | (89 | ) | (784 | ) | (9,887 | ) | 16,452 | |||||||||||||||||
As at September 30, 2024 | Blanket | South Africa | Bilboes oxide mine | E&E projects | Inter-group eliminations adjustments | Corporate and other reconciling amounts | Total | |||||||||||||||||||||
Segment assets: | ||||||||||||||||||||||||||||
Non-Current (excluding intercompany) | 192,327 | 1,001 | – | 95,042 | (5,246 | ) | (3,321 | ) | 279,803 | |||||||||||||||||||
Current (excluding intercompany, including Assets held for sale) | 53,973 | 4,162 | – | 957 | (1,714 | ) | 2,479 | 59,857 | ||||||||||||||||||||
Expenditure on evaluation and exploration assets (note 12) | – | – | – | 2,457 | – | – | 2,457 | |||||||||||||||||||||
Expenditure on property, plant and equipment (note 13) | 16,573 | 220 | – | – | (673 | ) | 2 | 16,122 | ||||||||||||||||||||
Assets held for sale (note 18) | 13,483 | – | – | – | – | – | 13,483 | |||||||||||||||||||||
Intercompany balances | 47,079 | 19,783 | 436 | – | (194,207 | ) | 126,909 | – | ||||||||||||||||||||
Caledonia Mining Corporation Plc
Notes to the Condensed Consolidated Interim Financial Statements
For the period ended September 30, 2024 and 2023
(in thousands of United States Dollars, unless indicated otherwise)
24 | Operating Segments (continued) |
Information about reportable segments (continued)
As at September 30, 2024 | Blanket | South Africa | Bilboes oxide mine | E&E projects | Inter-group eliminations adjustments | Corporate and other reconciling amounts | Total | |||||||||||||||||||||
Segment liabilities: | ||||||||||||||||||||||||||||
Current (excluding intercompany) | (33,403 | ) | (3,089 | ) | – | (2,202 | ) | – | (2,795 | ) | (41,489 | ) | ||||||||||||||||
Non-current (excluding intercompany) | (20,707 | ) | – | – | (5,033 | ) | 24 | (591 | ) | (26,307 | ) | |||||||||||||||||
Intercompany balances | (16,310 | ) | (36,719 | ) | – | (75,077 | ) | 194,207 | (66,101 | ) | – | |||||||||||||||||
For the nine months ended September 30, 2023 | Blanket | South Africa | Bilboes oxide mine | E&E projects | Inter-group eliminations adjustments | Corporate and other reconciling amounts | Total | |||||||||||||||||||||
Revenue | 103,151 | – | 4,502 | – | – | – | 107,653 | |||||||||||||||||||||
Inter-segmental revenue | – | 11,072 | – | – | (11,072 | ) | – | – | ||||||||||||||||||||
Royalty | (5,424 | ) | – | (226 | ) | – | – | – | (5,650 | ) | ||||||||||||||||||
Production costs | (49,696 | ) | (10,668 | ) | (10,825 | ) | – | 10,161 | – | (61,028 | ) | |||||||||||||||||
Depreciation | (10,642 | ) | (105 | ) | (21 | ) | – | 750 | (31 | ) | (10,049 | ) | ||||||||||||||||
Net foreign exchange (loss) gain | (3,069 | ) | (154 | ) | (89 | ) | – | (35 | ) | 1,013 | (2,334 | ) | ||||||||||||||||
Administrative expenses | (124 | ) | (2,444 | ) | (2,068 | ) | – | 7 | (7,261 | ) | (11,890 | ) | ||||||||||||||||
Net derivative financial instrument expense | – | – | – | – | – | (590 | ) | (590 | ) | |||||||||||||||||||
Equity-settled share-based expense | – | – | – | – | – | (564 | ) | (564 | ) | |||||||||||||||||||
Cash-settled share-based expense | – | – | – | – | 434 | (732 | ) | (298 | ) | |||||||||||||||||||
Other expenses | (1,935 | ) | – | (865 | ) | – | – | – | (2,800 | ) | ||||||||||||||||||
Other income | 94 | 22 | – | – | – | 11 | 127 | |||||||||||||||||||||
Management fee | (2,479 | ) | 2,479 | – | – | – | – | – | ||||||||||||||||||||
Finance income | – | 30 | – | – | – | – | 30 | |||||||||||||||||||||
Finance cost | (2,561 | ) | 326 | (1 | ) | – | 2 | (128 | ) | (2,362 | ) | |||||||||||||||||
Profit (loss) before tax | 27,315 | 558 | (9,593 | ) | – | 247 | (8,282 | ) | 10,245 | |||||||||||||||||||
Tax expense | (7,869 | ) | (251 | ) | (89 | ) | – | (43 | ) | (300 | ) | (8,552 | ) | |||||||||||||||
Profit (loss) after tax | 19,446 | 307 | (9,682 | ) | – | 204 | (8,582 | ) | 1,693 | |||||||||||||||||||
As at September 30, 2023 | Blanket | South Africa | Bilboes oxide mine | E&E projects | Inter-group eliminations adjustments | Corporate and other reconciling amounts | Total | |||||||||||||||||||||
Segment assets: | ||||||||||||||||||||||||||||
Non-Current (excluding intercompany) | 182,522 | 926 | – | 88,722 | (5,276 | ) | (1,081 | ) | 265,813 | |||||||||||||||||||
Current (excluding intercompany) | 48,300 | 2,999 | – | 463 | (1,709 | ) | 4,471 | 54,524 | ||||||||||||||||||||
Expenditure on evaluation and exploration assets | – | – | – | 75,252 | – | – | 75,252 | |||||||||||||||||||||
Expenditure on property, plant and equipment | 30,701 | 248 | 872 | – | (2,222 | ) | (11,438 | ) | 18,161 | |||||||||||||||||||
Assets held for sale | 13,397 | – | – | – | – | – | 13,397 | |||||||||||||||||||||
Intercompany balances | 43,146 | 15,323 | (114 | ) | – | (142,366 | ) | 84,011 | – | |||||||||||||||||||
Caledonia Mining Corporation Plc
Notes to the Condensed Consolidated Interim Financial Statements
For the period ended September 30, 2024 and 2023
(in thousands of United States Dollars, unless indicated otherwise)
24 | Operating Segments (continued) |
Information about reportable segments (continued)
As at September 30, 2023 | Blanket | South Africa | Bilboes oxide mine | E&E projects | Inter-group eliminations adjustments | Corporate and other reconciling amounts | Total | |||||||||||||||||||||
Segment liabilities: | ||||||||||||||||||||||||||||
Current (excluding intercompany) | (29,723 | ) | (2,130 | ) | – | 365 | – | (4,278 | ) | (35,766 | ) | |||||||||||||||||
Non-current (excluding intercompany) | (12,153 | ) | (17 | ) | – | (5,755 | ) | (7 | ) | (279 | ) | (18,211 | ) | |||||||||||||||
Intercompany balances | (23,859 | ) | (34,402 | ) | – | (6,884 | ) | 142,366 | (77,221 | ) | – | |||||||||||||||||
Major customer
Revenues received from Fidelity amounted to $38,714 (2023: $59,510) for the nine months ended September 30, 2024.
The Group has made $91,755 (2023: $48,143) of sales to AEG and $5,034 (2023: $Nil) to Stonex Financial Limited up to September 30, 2024, representing 40,379 ounces (2023: 30,193 ounces) and 2,253 (2023: Nil) respectively. Management believes this new sales mechanism reduces the risk associated with selling and receiving payment from a single refining source in Zimbabwe. It may allow for the Company to raise debt funding secured against offshore gold sales.
The Bullion trade receivables outstanding have been paid in full, after the period end.
25 | Supplemental disclosure of cash flow items |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
| 25.1 Finance cost paid | ||||||||||||||||
Finance cost (note 11) | 831 | 529 | 2,360 | 2,362 | ||||||||||||
Net loan note movements | (43 | ) | 49 | (86 | ) | (306 | ) | |||||||||
Non cash - Unwinding of rehabilitation provision (note 20) | – | (243 | ) | (198 | ) | (279 | ) | |||||||||
Non cash - Unwinding of liabilities held for sale | (5 | ) | – | (5 | ) | – | ||||||||||
Non cash - Finance cost on leases | (2 | ) | (4 | ) | (7 | ) | (15 | ) | ||||||||
Finance cost paid | 781 | 331 | 2,064 | 1,762 | ||||||||||||
| 25.2 Tax Paid | ||||||||||||||||
Opening balance of net income tax payable | 3,878 | 2,408 | (1,110 | ) | 1,284 | |||||||||||
Current tax expense | 3,986 | 2,847 | 11,530 | 6,762 | ||||||||||||
Acquisition of Bilboes Gold tax liability | – | – | – | 10 | ||||||||||||
Foreign currency movement | 352 | (256 | ) | 72 | (711 | ) | ||||||||||
Closing balance of net income tax payable | (2,174 | ) | (2,841 | ) | (2,174 | ) | (2,841 | ) | ||||||||
Tax paid | 6,042 | 2,158 | 8,318 | 4,504 | ||||||||||||
Caledonia Mining Corporation Plc
Notes to the Condensed Consolidated Interim Financial Statements
For the period ended September 30, 2024 and 2023
(in thousands of United States Dollars, unless indicated otherwise)
25 | Supplemental disclosure of cash flow items (continued) |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
| 25.3 Acquisition of property, plant and equipment | ||||||||||||||||
Additions | 6,686 | 9,042 | 16,122 | 18,161 | ||||||||||||
Net property, plant and equipment included in prepayments | 261 | (531 | ) | 923 | 687 | |||||||||||
Net property, plant and equipment included in trade and other payables | (50 | ) | 588 | (378 | ) | 882 | ||||||||||
Change in estimate for decommissioning asset - adjustment capitalised in property, plant and equipment (note 20) | (146 | ) | 474 | 722 | 445 | |||||||||||
Acquisition of property, plant and equipment | 6,751 | 9,573 | 17,389 | 20,175 | ||||||||||||
| 25.4 Dividends paid | ||||||||||||||||
Opening balance dividends due | 1,608 | 4,058 | 1,048 | 1,883 | ||||||||||||
Dividends declared | 4,201 | 2,686 | 10,330 | 10,264 | ||||||||||||
Dividends declared and outstanding BETS | 43 | (85 | ) | 106 | (171 | ) | ||||||||||
Closing balance dividends due | (2,422 | ) | (3,858 | ) | (2,422 | ) | (3,858 | ) | ||||||||
Dividends paid | 3,430 | 2,801 | 9,062 | 8,118 | ||||||||||||
26 | Subsequent events |
26.1 | Put options |
In October 2024 the Company purchased the below put options to hedge its gold price risk:
Purchase date | Ounces hedged | Strike price | Period of hedge |
October 4, 2024 | 12,000 oz (4,000 p.m.) | $2,600 | October to December 2024 |
The Asian put options were entered into to protect the Company against gold prices lower than the strike price over the period hedged. The options are “out-of-the-money" put options which lock in a minimum price over the number of ounces that are subject to the hedge for an initial option price. These arrangements carry no further financial obligations, such as margin calls.
26.2 | Dividends |
Dividends of $2.7 million were declared by the Company during November 2024 and will be paid in December 2024.
Caledonia Mining Corporation Plc
For the period ended September 30, 2024 and 2023
(in thousands of United States Dollars, unless indicated otherwise)
Additional information
DIRECTORS AND OFFICERS at November 11, 2024
BOARD OF DIRECTORS | OFFICERS |
J. L. Kelly (2) (3) (5) (7) | M. Learmonth (4) (5) (6) (7) |
Non-executive Director | Chief Executive Officer |
Connecticut, United States of America | Jersey, Channel Islands |
J. Holtzhausen (1) (2) (3) (4) (5) | C.O. Goodburn (5) (6) |
Chairman Audit Committee | Chief Financial Officer |
Non-executive Director | Johannesburg, South Africa |
Cape Town, South Africa | |
| A. Chester (6) (7) |
M. Learmonth (4) (5) (6) (7) | General Counsel, Company Secretary and Head of |
Chief Executive Officer | Risk and Compliance |
Jersey, Channel Islands | Jersey, Channel Islands |
N. Clarke (3) (4) (5) (7) | J. Mufara (4) (5) (6) (7) |
Non-executive Director | Chief Operating Officer |
East Molesey, United Kingdom | Johannesburg, South Africa |
G. Wildschutt (1) (3) (5) (7) | BOARD COMMITTEES |
Non-executive Director | (1) Audit Committee |
Johannesburg, South Africa | (2) Compensation Committee |
G. Wylie (1) (2) (3) (4) (5) | (3) Nomination and Corporate Governance Committee |
Non-executive Director | (4) Technical Committee |
Malta, Europe | (5) Strategic Planning Committee |
(6) Disclosure Committee | |
V. Gapare (4) (5) (7) | (7) ESG Committee |
Executive Director | |
Harare, Zimbabwe | |
T. Gadzikwa (1) (2) (3) (5) | |
Non-executive Director | |
Johannesburg, South Africa |
Caledonia Mining Corporation Plc
For the period ended September 30, 2024 and 2023
(in thousands of United States Dollars, unless indicated otherwise)
Additional information
CORPORATE DIRECTORY as at November 11, 2024
CORPORATE OFFICES | SOLICITORS |
Jersey | Mourant Ozannes (Jersey) |
Head and Registered Office | 22 Grenville Street |
Caledonia Mining Corporation Plc | St Helier |
B006 Millais House | Jersey |
Castle Quay | Channel Islands |
St Helier | |
Jersey JE2 3NF | Borden Ladner Gervais LLP (Canada) |
Suite 4100, Scotia Plaza | |
South Africa | 40 King Street West |
Caledonia Mining South Africa Proprietary Limited | Toronto, Ontario M5H 3Y4 |
No. 1 Quadrum Office Park | Canada |
Constantia Boulevard | |
Floracliffe | Memery Crystal LLP (United Kingdom) |
South Africa | 165 Fleet Street |
London EC4A 2DY | |
Zimbabwe | United Kingdom |
Caledonia Holdings Zimbabwe (Private) Limited | |
P.O. Box CY1277 | Dorsey & Whitney LLP (US) |
Causeway, Harare | TD Canada Trust Tower |
Zimbabwe | Brookfield Place |
161 Bay Street | |
Capitalisation (November 11, 2024) | Suite 4310 |
Authorised: Unlimited | Toronto, Ontario |
Shares, Warrants and Options Issued: | M5J 2S1 |
Shares: 19,214,554 | Canada |
Options: 10,000 | |
Gill, Godlonton and Gerrans (Zimbabwe) | |
SHARE TRADING SYMBOLS | Beverley Court |
NYSE American - Symbol “CMCL” | 100 Nelson Mandela Avenue |
AIM - Symbol “CMCL” | Harare, Zimbabwe |
VFEX - Symbol “CMCL” | |
Bowman Gilfillan Inc (South Africa) | |
BANKER | 11 Alice Lane |
Barclays | Sandton |
Level 11 | Johannesburg |
1 Churchill Place | 2196 |
Canary Wharf | |
London E14 5HP | AUDITOR |
BDO South Africa Incorporated | |
NOMINATED ADVISOR | Wanderers Office Park |
Cavendish Securities PLC | 52 Corlett Drive |
One Bartholomew Close | Illovo 2196 |
London | South Africa |
EC1A 7BL | Tel: +27(0)10 590 7200 |
Tel: +44 20 7220 0500 | |
REGISTRAR AND TRANSFER AGENT | |
MEDIA AND INVESTOR RELATIONS | Computershare |
Capital Market Communication Limited (“Camarco”) | 150 Royall Street, |
APCO Worldwide | Canton, |
Floor 5, 40 Strand | Massachusetts, 02021 |
London WC2N 5RW | Tel: +1 800 736 3001 or +1 781 575 3100 |
| Tel: +44 20 3757 4980 |
