Earnings call transcript Q4 2022

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Mark Learmonth

[Call Starts Abruptly]

By way of introduction, I'm Mark Learmonth, Caledonia's Chief Executive, prior to that as the CFO as you may well know. I'd also like to take some time to introduce Victor Gapare, who's an Executive Director, joined the group in January following the acquisition of Bilboes. I'd just like to give Victor an opportunity to introduce himself. Please, Victor.

Victor Gapare

Mark. you, Thank Victor is My Gapare. name I worked years. Zimbabwe XX American Anglo Corporation for for And Director Anglo and in my job last was Division. Pyrites for Mining Gold the I and pyrites XXXX, which I beginning the at at buyout businesses, left that managing had time. management gold I completed of the of was Anglo American after the

I XXXX, January, Executive X the Chief officer of From became Bilboes.

of the Bilboes XXXX. So I the was mining the in the Basically the January Between transaction Zimbabwe. and completed of also it have organization been Chamber represents organized as providers Chamber and to President industry in until Chief suppliers professionals industry. of Mines and with Zimbabwe, which well we Executive of Mines I as mining the XXXX of is mining includes XXXX, service in Caledonia

over on London During which Bilboes the last Baker Steel which the I from Resources $X from few team, XXXX, from – million the – Trust, the Stock listed time Exchange. really led raised first the years is

$X of in we us we raised the So from also Bilboes another we Development period. them during Also the Corporation to closed debt had XXXX, restart Industrial XXXX, our study. – South exploration million, we In properties. at the out raised begin enabled feasibility carry exploration by helped to us which the $XX which progress after that Africa, million [Fed] to used operations the hyperinflation money

Mark. me. about you, bit little Thank that's basically So

Mark Learmonth

Development; is for and our Dana years Chester, CFO Counsel; Group Operating who Camilla Maurice Chief you, about year, Thank is also, President, then got us Communications. of General Horsfall, Vice Goodburn, President now; been me Victor. And Roets, XX with who Corporate Mason, Officer, last replaced Vice Adam Chester and we've who as the

so get presentation. of into the let's the Okay, meat

to has held in increase XX,XXX will by so – is been production there profit has highlights, We've good. general in I'd but that about then $X.XXX results to costs much the $XX in of production. over not all And in just been our about Gross from to from gross in XX% increasing of your by and revenue scale. $XX we XXXX draw the the from up to about higher later. XXXX, $X.XX, to increased disclosed information last million XXXX all in offset terms compression reflects which attention but by margin again, XX% driven you in XXXX, ounces dividend, the in slight is increase price, a also XX,XXX gold nearly did in ounces more $XX year, the million, previously operating XXXX economies largely Just to notice million that which from

Okay.

of later. will come All into this detail more

sector. safety on and fatality to words the to deep-level harder, XXXX. redouble safety I've has anything to to And to set is unfortunately to may we is said? practices attempts like add to and further fatality response procedures, Other to the clearly, well have similar just would enforce sure that, say fair out. make distressing in we further the safety, very our want about than people mines talk working I we Dana compares Dana, that if in the a work few resulted just a our procedures. to had our may. to prescribed a that Just XXXX and from more, safe non-adherence be you adopt other fatality safety but Very with this quite to general event, that in it adherence fatalities gold try performance what but

Dana Roets

there – place we our a I a complicated indication that were things. injury account, are to good year-on-year that just actually in improved frequency the number the employees which takes rate, it's labor our X.XX safety disability think X.XX. record think numbers, to from Well, And extra into is know in improved important we Mark, of also fact from of which and increasing I XXXX

Mark Learmonth

I to compare. But it does got Yes. say

us not on this other to many gold compare got perform produce well. producers, information them say If I've of actually quite to granularity, you we

So should on we can Dana, slides? talk move to you about the just operations? of the just next I talk to and ask couple

Dana Roets

We buildup see said to Yes, Mark. up that what we you can XXXX on Similar that in process build [indiscernible], I and last safety. about year. started basically – and to completed

production build steady the hopefully our year forecast in of end market the over last a down now get to and to higher achieved years. state. targets scale. eight it's try we buildup this and time optimize XX,XXX. and because [indiscernible] seven, was it improve the settle up. of economies And are We So we told steady We our can of into We

Mark Learmonth

lower is It at lower quarter look is than the two. in numbers would say graph, there Yes. quarterly production fair if is in general you to quarter carefully the notice one you

year in in progress same year the see and production progresses and tends production this production peaking so as the then lower probably again QX And to in QX. pattern with we'll

Okay.

growth is our call having can and all All remain been do – a we And X.XX that, The stabilize And about XX,XXX objective at XX.X is The what So said, at grams has operations. say it. milled. done and of XX,XXX ton. optimize XX.X%. I'd then look, to what remain gram recoveries production see consistent that's grades real driver tons that year. consistent the ounces as of to a Dana between now we

look do costs. do, we efficiently So more ways do control just our what can we therefore it at but where and

Okay. Should we on? move

was the in we China COVID, in and delays shipping by that the deteriorated. something of It by was in that commissioned the panels year. the period, delayed XXXX of I'm grid the finally then manufacturer last that panels. the projects way in started clearly was afraid through out November solar The All

and we so also capital on spikes found liter that's voltage we October spending plant, considerable. ourselves before were equipment of money immediately we in of to diesel than about money solar we a equipment is $X.XX spent a the in cost course own our and commissioned liters more diesel so have That particularly XXX,XXX month, about using And the from more protect XXXX, diesel of on generators. maintaining worst

consumption. But a by said the a about result be as January of it's we of think improvements in in substantial diesels, In also result diesel only reduction as of the going grid commissioning of grid to plant solar a January, very used, our year, this I supply. and XX,XXX liters the and

diesel expectation Now forwards, of I the course average diesel am even to average an so reduction average you electricity if also a the will But average of expect $XX benefit so trough. XXXX And with cost. supply X% take the the peak online solar of out to ounces comparing produced, just a consumption. works of in an per production of approximately about reasonable see going that at we compared cost usage consumption of of

which and to ourselves say whole solar project, then using for that about ungeared. we be which inappropriate New the solar a funded business, we excess in nature, fair million It's from of a the cash. equity, It's not funded to raised really cost we in $XX York XXXX business

$X.X a March. by looking an so vehicle And now owns that to million of we completing to by the $X Zimbabwe are million the are exercise and bond to end raise in about solar get we

about end is I another expecting and don't I the is line, Chester we're at this think, correct? the if got couple me sometime Chester, probably dollars on X.X week. think in but know, moment am towards of the correct million wrong, I I we've that

Chester Goodburn

end right, this by in that we the expect Mark. week. of That's [Indiscernible] should be

Mark Learmonth

have discuss responded really electricity politics, way don't Okay. There's exists to South but specifically that Africa. the we to nothing, same the compare is Zimbabwean interesting the crisis authorities also it in that

process can or industrial and proactive tracking in own little to of and across and and in which current, things users the User is our whereas government African which We hopefully has very development, facilitating South auspices through large Intensive Energy place move but himself. and Blanket on IPPs the further will project under they movement solar And Zambia approval facilitate help advantages, situation agreement encouraging contrast, enter import grid. from encourage cost established may reliance the which of directly done facilitating the been then by an terms now where so a power called Zimbabwean another the Mozambique, their into initiative into President the Group, very equipment our an the reduce put to like IEUG, the authorities appears to certain were border. the fast have And is of to the

or in unexpected would Again, Africa. development South that a unconscionable be that's in you

to have interesting to compare – Zimbabwean the a terms, it's help find to that authorities exists tried the to just in in that same problem the Africa. way people So find solution South practical

about talk other going Bilboes and on move I we we're Should talk some to think bits? about now. Okay.

I us few please? on could slides a Bilboes, to Victor So run ask through

Victor Gapare

Thank you, Mark.

Corporation Bilboes said, Zimbabwe. Anglo assets, recovering. is the house which heap gold Anglo is As much through oxides the belong American pretty mining in already ore and the technology, I treated leach mined to

the mined gold we've exploration Anglo [indiscernible] of and In below is in assets. they ounces. about drilled the nine and started from oxides, XX,XXX the just mining the stopped just getting exploration just time gold about for – under the to by well X ounces. the resource when the established which we between about the you what under meters, Bilboes or the over sulfides, finished XX,XXX they the they over established mining Between oxides, find the bought time opened we that's fact, They million time had XXXX, then and tons mines in produced and assets and XXXX. XXXX the we world, were the meters when the of XXX,XXX out all business drilled of also

We resource. carry feasibility that also a out on contracted actually study to definitive DRA

grams you is the pitch good XX move and expect planned the end a million of completed, open grid with please the feasibility X.X end of tons was mine grid. life feasibility slide. study, X.X for actually per a the of the the study, That feed ton. average At quite of which mine At planned of rate with mill average an our per can a DRA of deposit year next of years, to the kind production

year. requirement million. project expecting produce year. ounces, mine life X.X of XXX,XXX an average ounces will funding ounces and gold peak per per US$XXX a under of We are is of a Actually, peak million mine production this for of The production XXX,XXX just life

basically XX.X%, end the economics $XXX has is all-in-sustaining tax IRR cost of of project of a price The ounce. ounce. This $X,XXX XXXX of $XXX tax a a gold per million, then per post NPV at and project post at prices, of

established So prices, when for some were we remnant you current doing bottom maybe upgraded also can just to started about line mining. feasibility the on the we naturally the exploration impact X,XXX, which the see gold if meantime, sulfides, you have oxides, the if the use In you that we basically. the actually for

That which right current is there place the picture the at on actually Bilboes. mining, is taking

operations. from produce expect XX,XXX ounces site is per of to We life to the year, And about two a project to that three about XX,XXX years. current

that as free to million able maybe at harvest US$XX million should cash from somewhere three-year between rate, US$XX So period, we operation. over and be the this

Mark Learmonth

I'm Talk Okay. Motapa. – about Bilboes sorry,

Victor Gapare

Zimbabwe Again, joint owners venture claims. with property in the assets. is you, able by Motapa at a the actually oxides sulfides, were from also to in Thank at the and was because entered standards. with mine Motapa, which XXXXs, sulfides the the to be started They original Bilboes establish Bilboes Motapa, should Motapa we Actually, expected a a that drilling Mark. Anglo of mined is the reasonable the contiguous into idea for sulfides with scale the which

on also end of XXs. out – Anglo of the this However, when getting were the they anywhere at gold

mining, there, actually Motapa which on heap Bilboes So the of of the Bilboes team some operations. was being place them the went the because were project taking to the current leach oxides, some transported

in oxides if the is at sulfides improve get some the we operation. the But hopefully know targets, cash actually the are complement put Bilboes this out targets money, Bilboes, we do have we to establish some believe area. exploration, exploration actually a being carry can scale you some current start Motapa actually sulfides idea at because hopefully and for The that mine combine for the with oxides. where the economies to the sulfides scale and flow mined the oxides, you plan long-term, we get if is in at Maybe which from because of actually oxides

Mark Learmonth

Okay.

interject. to Sorry

that it's current environment. phased at work move by before to it itself, Bilboes and do on very – by a minimizing to view phased on the done So with reflect a very his on relatively the study whether asset. The doing we financials, our a we also a looking feasibility the basis possible just relatively just very, that large, We're we see to is attractive feasibility Victor isn't the grade it's to are revalidate team to own competitive to project dilution. high and do It's study on price. equity to acquired

So be a act it's dilution. achieving always going balancing minimizing and to between growth

for best solving present the per net not the we're the potentially highest project. of NPV So share, value

So that's I think quite important.

that together process I'll having with team raise attractive is to later. completed asset. nice looking using one Bilboes, got But we've very, very Bilboes And of onto really can the start go and at a same pretty we wanted potentially got and reasons accelerate by the we Bilboes that thing skills same infrastructure a that's geological that already and the Bilboes come why modest successfully the week. they that But that the base who they've identified Motapa. resource at equity the at and at across much experience Motapa last is transfer road to their the And bit

and Bilboes standing together frankly, So Motapa is asset package. now

think talk about to you should new couple us the minutes financials? I on slide, able give a and we Chester, please? the just – move just on are

Chester Goodburn

set much it Victor Thank increase explained. the cash pretty the future generation remained in and ounce and us mining acquired XX,XXX phase This in the XXXX When flow we we'll story Mine, as of growth statement, pleased of Mark. results looking to in our newly assets reflects sets at phases for up success financial Blanket revenues, target see see our at on, increase at Blanket costs. of also check. the in cash you, earlier because production Mine that also ourselves ounces growth later I'm

occurred later. this has had bit a about inflationary You'll a let's peers talk period costs. see in where significant that But during our production increase

salaries new services our future Motapa increased up our wages Our ourselves advisory bill G&A salary has we've and set And for reasons, to members costs on costs staff Bilboes. – positive this increased increased to phase wages acquire of senior our also Caledonia. growth and expenditures at we've for and

meters tax of exchange this after the got we've million expenses, And are our EPS such items payment costs, not non-cash question deferred mined areas on per $X.X million expenses also [indiscernible] that including a Caledonia expenditures. $X Also, profit of we've that Our In fuel is over that also might on share. Could $X are adjusted currently losses mine out tax life please. that includes foreign tax is unrealized, EPS why as of in incurred the the of to above move and XXX plan. production non-cash. to different

highlight Consumables is due salaries and maintenance at are to shows to increase some staff Costs ounce to plant decreased and our pressures November. connected to down in our terms, come I'd ounces, solar went Blanket grid power reducing to increased ounces inflationary on basis our wages that's to due XXX Blanket electricity for that to usage. due we've decrease XXX. it that's in we've down we've that to mine it and And per hour improving production Also, the also kilowatt due Mine the our factor expenses also higher a good. paid the online Our that costs increased the like production transformers bonus our installed to absolute in due achieved. and in looking our from Zimbabwe the due

move to slide. next We on the

has mine. were value as expenses higher help us to and Motapa and increased earlier. due the to salary can you to unlock Our Bilboes see G&A, the the our And at Bilboes admin costs also to fees top services explained advisory obtain assets that

in of and on of dollar performed our dollars. got slide, very a to Zimbabwe most this calc move back the taxation reconcile It's to is to the million, tax non-cash paid government. $X as U.S. please. is Taxation, large pretty the approximately Zimbabwean component in profits based next to We difficult our it's some

in activities net cash and our the mining reinvest Zimbabwean the solar from due reinvestment increasing of transfers. obtained. flows on such cash returning the cash we pointing balanced can Moving see plant and the from as assets returns to flows. that realize We’ve to I'm shareholders money operating XX million assets that worth by pleased increased initiatives cash to those new we that the to

the of Moving to position. financial statement over

non-current that in increased, due investments the can the to here You our Central – see our Bilboes, non-cash that's assets and Motapa plant. and Shaft, solar

obtain Our cash geared, funding conservatively phase. due to that note is come balance to sheet our enables is down unlock this, us what that future the remains has but important to to potential and growth

distributing balance new in future shareholders. to also a in And and enable exciting cash summary, sheet generation unlock XXXX. cash assets our to up to in opportunities. very our position reinvesting achieved see was while that to us was balance in good A good our it's cash In generation is

Mark Learmonth

Thank you, Chester.

fundraise week the the few XXXX that with a words Just we results. on last did the in conjunction announcement of

and So fast allow was in properties we get million – through acquired. That we've primarily currently we'll bookbuild. of raised that and accelerated to some about track, these an that on was going us $XX to new we're London

at the particular, we the of where at significant sulfides, kick the maybe to the just study but in finding quickly. Bilboes potential So into material could find cash we're start exploration hopeful long-term oxide feasibility quite that near-term turn some project not also Motapa, objective

and realize providing shared procurement like receiving of technical a actually we some and so HR, the what Bulawayo will try goods to synergies allow We'd like and we Bulawayo, financial to, and South to having us the towards of there. we the a a, North Bulawayo services of in facility, need the synergies call accounting, in and services begin a Motapa Bilboes to center realize by South things to can having establish shared which Blanket facility that

at position Blanket of to cash strategic using Maligreen. generative, net $X.X be activities been that exploration to won't lost the we highly relate And cash that –our bank Blanket million. have And Blankets. then on at fund about work a we fair to have just piggy don't whilst finally, say December was It initiate as some is a – end it's factor

Motapa in which transactions we've particular, on, the of So price the because incurred that Motapa, complexity Bilboes. purchase substantial for on were the quite initial the fees and

Maligreen historically and that we – made further, when like of then Connemara things Hume. looked the also we North acquisitions looking And backwards the and at Glen

raise modest do U.K. about we So States that taken things UK. we in to we SEC because wanted longer as chose the requirements. looking the for would've quick we were million Why do a relatively did in bit the the $XX quite to a something registration

just also pleased I'm of going in - mining the our was will are shot share on And week time we fair to in investors to see who provide register difficult recognize for they to test hopefully, hopefully of vision stabilized. from it's us. chance see the or over a we past institutional will a give we forwards institution to whether and UK And if done we years there UK and specialists marketing and strength this the that It go as spent the wanted and it the works depth demands of when a investors time the effort was to marketing the say forwards. in lot got that new the and not that early then see UK. support price up three actually at We've wanted and for further

to X% and about was a So [indiscernible] the the the that's fundraise. XX-day on we issue are where discount price

get they investment allow invest in the approximately is whereas place always for liquidity that The in institutions still the that but Zimbabwe of don't right to is their the participate. have in to to us, Zimbabwe so climate in time. available $X appetite at institutions and time Zimbabwe can is raised open money have that The million nature

be And sort so to they shuffle need and a bit able subscribe. things of more time to around

fundraising. the So that's

when loosen we for was we dividend. per Initially were Central of end news until project, We it And XXXX, about able dividend the years Canadian dollars getting so. XX our a quarter. felt and closer is This XXXX, more a US$X.XX we we we or the paid company bit. Can just the about in purse per early turn with we then really. but old in comfortable it to was Canadian were strings to denominated to – share started the were as cash Shaft flows, a

dividend buy about And so $X.XX we started quarter. per increasing the

felt that just became to it COVID what to time comfortable in see us increase, of the of But last a growth to continue to going that the got were going was of we but on into becoming we we hands assets us capital. to us we for apparent by we'd of into the paused our January about XXXX, getting, situation to allow position be the once April, that, done into We new and company on were a March, a knew business. move get then with requirement time rate year, put to more where position would effect we a

so we just it felt to further. And dividend disingenuous that increase continue is situation, in the to

is our is the So dividend dividend. it put simplistically, policy to is pay to a dividend policy

to is generative new and become per at XXX dividend about dividend maintain share, And at on as level. intention current to bring keep levels, increases. then then quarter, they Our stream per resume that cash and we projects when, it the

expect to the unforeseen Having expect reduced. wouldn't dividend. said eventuality, I in future, dividend foreseeable to the the be I any see increase any though, for So wouldn't barring that

Should – out extracted we this forward move January. is and give move this in – put we for forward RNS from

from between ounces and approximately is year. XX,XXX, is XX,XXX the between oxides XX.X ounces. So gold and XX,XXX Bilboes for We the production Blanket, for say XX,XXX at

between would the XX,XXX XX,XXX, year and that So to ounces. be for

that because because say this in is it's a be quite we Blanket, $XXX input are and inflation wide that online now careful to about that's costs, to costs, experiencing it fair predict some need end a having where to will to we $XXX an how difficult for bit ounce. split range up. – to looks And the us order we about we at Online of costs the online be explain little

cash considerably but Bilboes online oxide Bilboes higher and low-grade of generative, cost in cost Blanket terms But cost ounce. is that be higher because per the project, of much will a the

to fair those largely cost And are of that per clearly, ounces to blended to a the plant XXXX say online by that the cost is Caledonia, blending an the solar not of of that the to XXX XXX XX% per XXX doesn't Bilboes about oxide. ounce. the the skewed $XXX to of cost by benefit the XXXX It's XXX ounce effect own of of reflect plus online also so cost, ounce earlier, together, group by about referred Blanket online reflect the are the to doesn't are of And But $XXXX benefit Blanket costs $XX owned solar is because Bilboes an of Blanket. we plant online the gives Blanket.

the ounce solar power sell benefit at the by project. the project cost investors idea all-in-sustaining of And $XX that level price a XXXX. Caledonia electricity, and Blanket minority which from disadvantaged an cost, reflects Blanket power, Blanket's is between the we long-term nor at means reflected sell advantage is average solar and to in that the of is a in So which the which XXXX either group

reverse cost X% cost is ounce, If cost, at the we in be Blanket. of excluding would of higher which the about the just Blanket you about all-in-sustaining were to effect that an The $XXXX the order a or than the X% all-in-sustaining online in cost, XXXX. incurred from out

projections Bilboes effect the put the in effect to context with our the oxide project. important costs of just short-term I think for the So of it's

$XX level the is is we spent on close tailings its be this now tailings year facility, of and next to development on that a be about before million spent facility. But for the for set years. million capital up about million need there's so going or is million Then we year. at tens of is to another Blanket that running of need will to the going up exploration. that old capacity, mines, this end us level. production $XX the which facility at horizontal be of gives deep group to million, and levels continue a Of business deep $XX new on also get new development us from a to which pretty is Central effect Blanket. going level the The $XX of very CapEx maximum allow Shaft, our platforms the to low to resume and sort $XX will to

that quick So I relatively think formal questions. open that presentation. counter to through the is can a We

Maurice Mason

first, we with else if written we of a questions Shall deal And There's has some anybody they with few. those their just can Mark? the go. deal hand they questions, can then, and as raise

of from adjusted of the questions answered and $X.XX]? terms with I earnings already two that I terms think difference in earnings. think Well, non-cash regarding really partially, first The that Chester's own or terms earnings between we [indiscernible] cash [$X.XX out in did Chester's adjusting in the dealt of, items.

expensive I want for one? that sale if part and to The take second the Mark, equity? don’t of you you of Xx relatively of the earnings question cost do justify a is how stock know

Mark Learmonth

Yes.

strategic substantially done the determine certainly its the make the rate year late return it market. fair. transactions to It be it that the It's and – said, the depth a ideally, at going was which is to rate main bit done It the I've higher internal raise. we was test deal London acquisitions. project And rated Motapa itself. come face. can't later – would've opportunity Bilboes of than We fund that to And to along. on the a good presented we washes As treasury strength we'd of last the very modest was

of we having do something but to is with we're comfortable day week, not choose done every it So would the it.

Maurice Mason

Thanks, Mark.

for which XXXX? group to Some the are website, costs There on increase our questions in details on XX, is the costs. and A a all-in-sustaining about what for per and expected cost asset. online is the which percentage slide cost question guidance

if what and have looking more you expecting we we're So they're we on much say don’t don’t know if year look this can than increase cost any know if given cost. shareholders guidance, can that. I budget. comments Chester, there for already on mean, I I have

Chester Goodburn

cash at the add X% and level, balance due plant cost XX% will But back that there increase, numbers got bit. the are we're that Blanket the increase would savings in to some looking via perhaps to skew at to So numbers a oxides office. not solar a And the we've efficiencies.

Mark Learmonth

Yes.

So reduction. we are seeing a

that, Just the previously to reflected benefit online solar of reflected in just The But having isn't solar the cost. the benefit explained. of all-in-sustaining I've what of elevated diesel. is saying, was is use amplify what solar cost displacing said for Chester's much a reasons in the

a we had we previously. diesel, Labor, are displacing in pay by so see done going lower than to charge dollars. our we U.S. Blanket hopefully And labor electricity of

I modest the is rates. So collective sort now The chamber Chamber in probably labor think see of the bargaining of we'd the system. our inflation and the Mines works way

quarterly I think wage there are renegotiation.

So imports expect have much think I you. same we in all what gold is are the there. producers inflationary I the as effect Where like explosives position, on other damage too don't and steel,

Africa we've then quite got the our, be able on South based to rely price. business in to efficient get And procurement to best

reflect of So consumables that's only costs. a third our – only

$XXXX you all-in-sustaining effect Motapa the for an cost from at of if That's Bilboes excluding, out the you oxide. other I reduction. strip hopefully third out may we're high even increase then cost, terms operations below see in But And explained, approximately cost the the just of cost to all-in-sustaining inflation. if just subdued a remaining oxides, $XXXX we've to ounce. The we effect got third that's of looking as strip electricity, labor, the a the

cost increase, get I have but don't you'd some So about. alarmed to think

Maurice Mason

Mark. Thanks,

Mark Learmonth

are made tax – I'm enough. pleased effect the I talk clearly The can rate. bulk the tax the CFO, in accounts the of think local report denominated Zimbabwe, tax, Chester currency okay. is We of accounts, we very A that in on the question U.S. okay. Zimbabwean the as a actually done basis previous tax our computations rate, of pay about the And the tax tax dollars. point Chester Sorry,

can, it And so underlying try you – tax Chester to exchange the to something different U.S. dollar back done and reconcile gains clarification you, makes different very if of further I'm you've is different calculation you work that a over to to Chester? happy exchange got then the completely of and if means won't charge the for losses. which actual because realized basis sense hand very that currency,

Chester Goodburn

deducted I that benefit Also that’s a million, would fact profit non-cash get Yes. before big don't tax. items approximately in the payment we [Zim that explained foreign of that $X million. you the calculated don't very item, also tax be expenses a in tax And expense, the for. that's in deferred before Mark. you approximately well, see of losses, of I'll a deduction our leave dollars], it's is non-cash tax. think $X Like exchange Unrealized that you'll something note that before that component profit

Mark Learmonth

Yes.

– areas also in other structure. We two inefficiencies tax our of there's

and money The that's first as is the tax, withholding tax withholding we group. around move

dividends Zimbabwe South the of to So withholding on distribution management we Then from from Africa. incur tax further in tax paid fees on to incur the particular UK. we up Zimbabwe withholding the

in South Africa then the and profits made are so in up second primarily now And intercompany business. on tax the procurement end South from profits we also to intercompany we tax Africa is Africa in area, our looking paying and the – South on

to we on try up and procurement So Bilboes. business setting are that focused a minimize

Bilboes that business to service that in existing African in a so disposal We lower will, because can't give CGT. it Africa be South regime from which just will Dubai the move South procurement we tax is we'll to Dubai So will that based South Africa. deemed rise a

Jersey other of rate fact is sort is And we tax then of area tax company the inefficiency the the top where zero. the is based will, that in

tax have Jersey incurred don't And so in it means that expense relief. expenses any

think expenditure said all get a headline XXX% is in Zimbabwe Having rate in because a) sympathetic those you tax of particular So underlying capital is I quite regime why in and tax quite that, stable in capital very allowances together Zimbabwe for b) year in high. is our explain is which incurred. the things the

Okay.

So that's rate. the tax

So question nightmare we EPS give don't became so cannot used an EPS, variable we and just we because it there's many here that absolute factors about to, guidance control.

the we ended had So tail in of paid reconcile gains, losses. ago you – over which scheme, up exchange foreign credit few saw a export things incentive our like explain had It stuff which control. exchange A and just no chasing became premium. years we us trying being terms to foreign

frankly, ever own getting and found on costs, into and as the give make price. you'd to gold just your we can production after that, to CapEx everything you that, take decreasing So And view circles view. I'm then ourselves own We guidance on have afraid. your

Robert about the interest markets, the on avenue. Mugabe advanced of you caution a would interest we're the not Street. We're question talking it on elsewhere. but about sophistication that, sort Chester asked the of on talking the financial. bond. be on I the talking that the as it's not And Way rate bond. Cooks Andrew details Zimbabwe capital Question about Look, rate expected can more as Wall provide would We're of

externalize so but purely expected green it's green. I outside think offering to not about And to would to policy, of bonds got we're there you don't government not we've provide tinged then guarantees to capital. which those be as is But business want terms internationally more we Zimbabwe, the And this Chester, is in particularly talk we're rise? the And future backstopping ability a reason domestic And bonds do the bond is control. of issue. of appetite that future the no for

Chester Goodburn

It’s interest tenure pay We a three of annum. twice per is the and the years. bond Yes. year, X%

country. green Mark were options limited as of available availability said, we're in Our and not bonds

Mark Learmonth

to very, very go we are trying somewhere. instead selective has trying the Okay. quite return we're I numbers, from can't pass conferences frankly it to remember make good are Camilla, face-to-face give the mining conferencing we'll can some as just general the to frankly I of The good. do? of am some just to relations on, planning you is of but do things, video find which which increased they conferences that – it's that conferencing, are less currently point conferences, investor to to reflects offhand. that much we analysis expensive right I mining And because we the in And in cost to notice attend? be a are and guidance question which have which to which more we ones terms mean, and these we are planning but you will ones substantially. regarding G&A very and

Camilla Horsfall

In do we're Europe. going think I to November. probably Summit do the London, to in are going Metals don't in one-to-one we Europe, the London Precious

one-to-one, London So at the moment which just is… is the

Mark Learmonth

and then the and UK, And also Denver to Europe going just Gold isn't Show, it? very in also, that's We're which found good. we

Camilla Horsfall

And Creek in Beaver then the well. and one as Denver June.

Mark Learmonth

Yes.

grade the want for to the to it's CapEx are to apparently grade talk bit expectation And are the over $XX about CapEx be continued of Europe, on particularly money. to just you is $XX that Bilboes. the sort that phase for U.S. capital about a circumspect will memory million come the get coming Blanket. grade. the set bulk things The it's expensive of facility and CapEx estimate of expensive The events first comprises think based fair of we registration between of don't about tailings what fees The Blanket and – the Then we've The the little you to development. already to European grade? just whilst down. which, for anemic these capital – expenditure the is million I out be these I a of down XXXX, to us think of spend not the the quite got compared events. say your you where UK would Dana, difference group some

Dana Roets

confidence what at resource, which shortly. not coming we've look indicated you the if and high in grade is, is measured down our Mark, got

then, know don’t and update did, this come price trade coming I gold our the the where we debt the latest look down. because cutoff at it's that And inferred if came also down, with resource, high you grade is but from. the of So

were the of picture. which skew would So low a lot grade added, resources

slightly we forward, serious but coming gold higher So of see. the grade is going price, issues that grade to no because there's down be stable going

Mark Learmonth

would to like like on and of above that have assets Would And the impairment you to Yes. reserves? And and impact significance that? be address to XXX area we any the this that meters? address the will question of Chester, access of resources you closing will

Chester Goodburn

there's Commercially, Yes. no Sure. significance.

more our non-cash to a explore, but above of meters, plan. justify areas were effect thinking or development It life it's it no a to has value. those in item. wrote being on above able Not able mine got we off, would capital that, that XXX But was we So bonus. that, XXX but be areas be meters. might We

Just life cash planned never plan, in the our of never in flows. mine

Mark Learmonth

there, find in do it constraints production also, to it we've fair still assets you'll are logistical impaired that on fair say. we constraints not and But meters. exploring exploration terms material, of do We've to capacity the is and we've intend personnel, to we above find some personnel. exploring to say If go round because had just go that XXX of focused got if impaired, those our we being more that

question leach that you We've got to but the question, Victor, a on able context Victor, process. the can heat don’t question, I Victor? detailed if oxide quite see know a about provide more you are

Victor Gapare

At come in put an XX,XXX tons ore. locations. plan to plant mining of basically is around at Bilboes, What one we want. got the crushing two Mark. you if per those we've you, is you remnant probably really in at all one Isabella day, Basically crushing achieve Dana, McCays. Thank and are have can at what end two plants, we doing of the the from rent mining

XX, expecting are basically. maybe We production per of kgs month, XX around

Mark Learmonth

the variation that the – think questions is leach so exhausted. leached largely And is much the been It's times. much in already to the my is variation, We heap how pretty material be mean… of going Yes. of that what's I to heap is putting but the understanding on – many fair grade is production can But say leached, on we're in really the it's because leach the that be that one anticipated variations there's there.

Victor Gapare

Yes. Actually.

So, results has always the have we ore remnant heap which leach in leached mine, then continuously locked still you the sense, that in at leaching we and there up But there, problem when the crush is you been old the fine on they when to leach in when of that look you some ore, which you but gold a which ore replaced of Anglo the problems times, operations, material, lot crush boulders, cycles. basically have we maybe so the as top the is ore. Mark, it, ore probably ore, tried that of terms get, started didn't that new

Mark Learmonth

bit to sulfide Bilboes oxide But the this than the project. but want real of well, a Yes. [indiscernible], is obsessed don't focus more get little it's it of larger asset, I to say about because I've Motapa got thing, as people

So the produce, oxide kilos heap will leach Bilboes XX at about a said Victor project month.

approximate an just about So conversion. you XX multiple, gives

Victor Gapare

if Mark, there. come Yes. can I in

as early the us but red do year, are sulphides. sort about an area. we've start some it's end got an X,XXX the got project, of It's and ounces cover to go we the through cover a interim the the to by building be that arrangement said, of It's you seen We up start we've a oxides to study project. because feasibility sulphide mustn't cost a the to of as until cost also of the anyway just really helping and it

Mark Learmonth

what producing a we sort into month, perhaps X,XXX is ounces million month. not case. That's cash the flow best should to But at for of say, it we a effectively That thinking X,XXX spent I actually factored people a million that that the the to on that hadn't based our is know project oxides on a sort $X we unexpected want ounces $XX evaluations. that in month So exist. X.X a of make start resource, don't years about please,

about shares VFEX. on A liquidity the of any plans the question to improve the

Stock traded got to it. Exchange. we Our on brokers shares to have We the once Falls work. can it about I what Victoria down may don’t know our make do

liquidity You the existing create owners without can't selling.

to be to to get seem positions. they don't accumulate need sell, And we owners to existing they the to want sell. but wanting So

night. that can got something to that, it's particularly at I've say do about sure keeps I'm we not So not but awake me what

liquidity in positioned available. want that's Zimbabwe and investors We who we as institution have that have such shares our as when buy they are to

policy the retentions. government ForEx question here on is A Okay.

you arising previously U.S. government the the if and increased was you've incremental got production about Victoria Falls production, that year. the what, previous in applied from XXXX is previously, we've Exchange, So last the that under that production XXX% rules that ounces in dollars – previously, if under XX,XXX ounces production, balance of policy local got a the on revenues do, you we've incremental incremental on production currency. the government And the Stock – in were policy listed incremental had we XX,XXX to as the

that on rules so have basis, Falls off Exchange. we And and listed changed. Victoria now went The the on

a XX% to So regime U.S. U.S. now local under in the regime, split the the operations, respect about announced currency. moved of that currency in previous local month our XX% in of that's under blended in was so dollars currency, average and currency dollars to was ago local U.S. balance dollars existing or XX% in and

And very are time, improved in point has fair of Zimbabwe at pile not that any okay. to it's typically in slightly. anything it if dollars, do So we also accumulate overdrawn Zimbabwe purpose, for say we've we a no dollars which got

first like the address. that's to question So I'd

if change dollars, dollar in doing still revenues Bilboes XXX% the is the is will regulations, exchange. to which effectively U.S. with revenues U.S. denominated the Vic we that exchange local that, believe a have dollars. trying People which companies to domestic is that project, understanding though view We from Exchange, Zimbabwe a the Falls to Stock increased U.S. our get that in were a for a even the they're you Exchange, currency in that such of we get relaxation which moved the unwound then

affects have Victoria it in change little Exchange, don't off forward. policy the Falls bit whilst taken So position the believe our the going shine we may a

I'm listen So to Falls comment business. change it affect Victoria That's business, so as is our the why not far to affects and want as other far as aware, people the other their Exchange. us, can't we I not policy might that us. does What on saying are aspirations people's

answer is I has couple the understand ore mining that? about mine Dana, going ore question for the extent to method could out? mining. what question. body predominant the you forward A a next the been years? trackless mined What conducive large That's of is this

Dana Roets

to And body. ore XX in use and body stoping doesn't want meters our basically production. mine grade feature out, wide. was Ore mine so low long-hole ore ore mined really to stuff big is – large we future Yes, this extend it up mine it in and

meters, methods if And as method. over long-hole are a meters, rule mean far right doing two below stay stoping concerned, X.X underhand as it stoping. at we forward start generally when long-hole are a to of it's than we X.X are we then width long-hole Going edges, Blanket it it middle AR the then suitable is mining and that's and between the is stoping, thumb stoping wider varies. looking is X.X always stoping. kind stuff of stoping. wider will stoping. vibrant that, where for to underhand methods have of stoping ore stoping doesn't hybrid a changing is of sort But We are you Eroica combination and got underhand where long-hole some we And on long-hole it's body, of in predominantly at Eroica, Lima, juicy underhand similar And going Lima for stoping. combination see sort also long-hole it's and stoping predominantly the areas

Mark Learmonth

above is that the XX. to range Blanket guidance think XX. is steady prospects we XXXX This question Blanket for to I than state to I XX a forecast increase was in XX guidance for operation. the range lower production Blanket little why We achieved. year The it's put XX,XXX think see The to ounces. out, XXXX

who the the the bottom understands. the realistic end between the it's there's of overdraft assessment in the about to want overdraft. person XX, whether ordinary wagerers the be talk or about top you of do and will or mining. depend as question Do end Zimbabwe? in I'm question the overdraft Chester, Blanket should to a increase a it's asks sure So able that the XX just the on

Chester Goodburn

funding our to want extent. country. loans in obtain not were business. looking large in we to the and a term We ungeared long-term or data some We big conserved overdrafts And and funding a for then are debt some available in Yes. market were debt. year It's

short-term gaps at to of overdrafts fund some should utilized part by year. funding be Blanket, latter repaid So and it the this

Mark Learmonth

that correct, Chester? in Zimbabwe thing But other I Is the available. is relatively become dollar overdrafts have recently only think denominated

Chester Goodburn

That's right.

few denominated between. that's So far debt, dollar

it fortunate country and to I it utilize we in to that were we plug short-term position in think, get gap. for a the

Mark Learmonth

Yes. Falls to get off and of of local listing phrase Vic part make it the the used be build through extract the and up cash thing by out. typically over And understand to it quite – then other – course our to payments of that just cash hopefully any objectives and lumpy, then in smooth your month the as is with should a month, payments, you get helps things we and just quite cash helps cash is just you the meaningful they're dividend you outflow what the is I got you can our deliveries. as Zimbabwe But other banks, your having smooth paid deliveries it's and the ourselves it and borrow course having the month another one relationships pay at for workers. you And if the of strategic relevant creditors lumpy to end way our pay that those it can in is shareholders of But Exchange of them. and money we management treasury big

availability pretty earn that's some everyone future of the But some of debt growth. and it's the in Zoom participation the very funding in short-term. got that skin game So is sort in limited

Mark Learmonth

off the I questions. We're But got no genuinely can see any this at further hour. the further That's cut just to questions. see further questions I've – hour. me don't trying on not no

it a minute. Just give

Okay.

XXXX, for the after I so all your for to the of to coming characterize of thank do quite XXXX questions, fairly this a a not see sound hope you you'll further It's thing think actually in out way is see time But a no participation. bad So consolidation, and QX as boring, which but environment. exciting XXXX period end stabilization looking would results we in may March, be in we mid-May. to

very for you So all attendance. much with that, thank your I

Caledonia Mining (CMCL) 28 Mar 232022 Q4 Earnings call transcript