CMCL - Earnings call transcript Q4 2023 | Caledonia Mining Corporation Plc

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Camilla Horsfall

Good afternoon, everybody and welcome to our 2023 results call for shareholders.

On the call from Caledonia, you have Mark Learmonth, our CEO; Chester Goodburn, our CFO; and then myself, Camilla Horsfall, I'm the Vice President of Group Communications. We're going to run through the presentation as always and we will leave time for questions at the end. [Operator Instructions] Okay. I'm now just going to pass you over to Mark and Chester, who will run through the presentation.

Mark Learmonth

Thank you. Camilla. much, very Thanks Caledonia's Learmonth, CEO. Mark I'm going And observations a opening give comments I before was and Chester. I few to to hand over fair was It's XXXX year. say, a challenging to of was Blanket at the Most difficult Mine. encountered the with a difficulty first of half the year situation in the oxide Bilboes also And problem. quarter. Both are good QX was and those of a resolved QX started off reasonably well. the sort by the unexpected in of pretty much half. Having a bad was of relating first things towards XXXX end the let's through sideswiped was that, couple It of quarter to news just the said this. but dwelt run

of annual that progress. early the over QX nearly with to production particularly It in was been in was work year, adversely higher to part also mine decrease was So in guidance. gold the X,XXX was ounces, a line in compared just sold And performance, at million $XX performance the oxide XXXX Blanket largely at due million at noted year just ounces. in the of the costs, the that Bilboes $XX.X end bar be XX,XXX production That was in Gross gold year. the hadn't particular, for profit was year. higher that by over which the should previous affected

about gross January. million So profit that in represents about third of at of week $X and of sold $X million revenue the that was

just timing a issue. was purely that So

and expected. they power In terms but of we we operating costs costs, labor somewhat higher higher expected were had than even

And -- on that's well consumption and XXXX. improve our since -- side, looking at to the gone and our measures certainly efficiency. to labor December are to reduce labor reasonably electricity We reduce the our labor that's

unit higher-than-expected got is for with side, pricing purely to On average electricity fact, in one issue do the actually, come has usage. our the down. It's of pricing. And nothing electricity

think confidence feedback and so will state one hard of very the the drilling, end Dana be finality the capable to at now appointment our the reference close received find followed the I very feasibility of deep then a be various the has Officer, Blanket the where the fact Very to announcing and XXXX you'll On we some Bilboes evaluating that the work make one in will this to a reflects are February statement of the positive Management has news now out And pressing capital X releases, side, from -- Chief -- will we're previously yielded XXXX the are can back it's we announced, being of to that replacement. those a out consultants, another We payable allocation life working results, reserve been in the in put January. We've good of stepped decision. Roets, that and dividend the to from that with revised remainder Blanket of very XXXX. program get on start April study. his to strong. good we're effect Board that preliminary published. And in down XXXX drilling from due And and of the course the statements, on Operating who as July, -- results. financial which the in table. We be of that our extended and up resource maintained that year, with quarterly mine the

terms production the quarter. in just of is here mentioned you that already So see summary can something for I've

damage of $XX.X of the profits were year. you but within to ounces for XXXX. compared a and you to loss over just the what through lot profit compared see, line, as quarter touching XXXX quarter, the for higher that. attributable in We the below into profit they information a Just Chester fed the benefited full XX,XXX under distance million ounces in price, gold from give a Gross can higher XX,XXX shareholders meant $XX.X QX in to year which revenues. QX the And was gross will million. that which there's more unfortunately, on

numbers. graph So been that's just you at on? view Could and graphs longer-term you These grade to Blanket. to some XXXX. shows back give move just of sort The of headline a what's tonnes. So happening go top that

Chester but can quite you has first sharp contraction quarters QX one of but the on? detailed tonnes previously of well analysis that slightly pleasing and see we the to about results. is XXXX. Grade and we're I QX increased now of in if mined has, move in steadily we the exploration for XXXX to do see that tonnes tonnes grade to but -- hand pretty the X that, of It's best, will more a did the reasons will general, the You XXXX, through much from as Okay. discussed I and optimistic Chester? to stabilize somewhat fairly that improve. we over the notice milled recovered run show think XXXX things declined in that the financial Should probably may more

Chester Goodburn

sold It's consistent. higher tax gold in been added Yes, January. can see higher realized the we has royalty several from to been [indiscernible]. progress quarter as prices Shaft well when for see. has versus in at gone the quarter is years usage that regime very and due as work you [indiscernible] revenue up comparable sold is that versus Mark. unchanged Central number for going that's comparable the of Zimbabwe to and we ounces And the due the early costs, quarter you, gold electricity was as X,XXX increased up much that's fairly Thank in the X%, Production [indiscernible] gold flat quarter. the in predominantly the

XXX Central [indiscernible] -- of down allow reduce drilling that production we below our down meters. [indiscernible] below centralization would like below we power plan, to Blanket mine and on our in As forward. that, going forward through online should life XXX overall to We're aim shafts go our at with to us move currently above Shaft

-- process saw that, we're making October in of high and has back up to that various overtime sequencing been than the and that Now on background our evaluating Other in options November. [indiscernible] our that. and and decision

initiatives has in dividends Our going [indiscernible] forward. paid December

the expect has December increase won't So We've maintenance $X.X been a you that million in incur overtime, incurred approximately sold. in late don't of [indiscernible] see forward. some going and obviously we costs to

some now depreciation down shortened that's coming this to see shafts probably of will shafts, of up XXXX, The depreciation forward, we the mine significant shortened life life the of and forward. doesn't the number useful estimate. life that's that of And has we but with going the in see increase number the see our gone going

[indiscernible] seen Under receivables million line, of payable We to the on of going $X.X that gross costs the we've on VAT let's of forward. profit lot That well, $X.X and Bilboes that [indiscernible]. the expended, [indiscernible] is that impairments is the million we for of only quarter and noncash the say, COO. one-off related typically settlement a acquisition X, had mining former $X.X with fees million oxides year, to we

be and that exchange $X.X of costs. items foreign million Following losses, other overdrafts significant would

assuming see shouldn't we to expect cost the we we're [indiscernible], overall, don't why that's see So forward. that repeating. going should We not see overtime

I've looking [indiscernible] and is see just we to for not good are costs QX. mentioned. and these going QX Our that production one-off

in Blanket you also that these I'm sharing forward very Blanket results remained QX. the you strong. a see looking mine, in remaining for numbers has All in all, can tough business us with So which generator is mine year underlying and to above cash

such approximately within a Bilboes is -- effective ] Blanket mine -- rate quarter. like approximately Bilboes a the at losses. Our effective group losses, tax tax expenditures [indiscernible] because there's the expense group rate oxide XX.X% [ rate we of nondeductible the the for while $X.X of they million have tax were These oxide tax lot for and

$XXX,XXX approximately to costs that expect come shouldn't going $XX.X And we see We of additional that per month. down forward. million to

for When And very we our that's reduced inflationary down salaries wages and come we've the utility in our as modest is in operating seen of we the environment plant you bonus, some reducing that that the at breakdown, Bilboes has cost we've consumables keep we much detailed and globally stable, a see price throughout production [indiscernible] to quarter-on-quarter Electricity, solar usage have use. increase in with has on experience the what well high really check. consumables. seen the done look given breakdown, cost check

on has going been forward. Bilboes -- said, our than And costs. And to a salaries solar costs better per I advisers We in a months and we from month. plant And October also that quite $XXX,XXX XX Bilboes. settlement approximately spent looking sort been to obtain we reduce bill to include -- solutions payable Other at $X.X [indiscernible] XXXX. very and QX been has $X.X the COO. million We're the of mentioned reduced lot much due producing expenses million to wages that also to electricity oxide our initially. as expected [indiscernible] to that's some what

explain salaries of grade. -- [indiscernible]. [indiscernible] studies We've effect ore general million in from some some that evaluate see And $X.X increase that the that. you and and the feasibility also by [indiscernible] in see wage was and got pretty do Taking XXXX. Cost out you settlement seen increases, and ounce, much million incurred cost per that admin the on Additional to that mostly the $X.X of inflation we'll [indiscernible] line is of will some Bilboes with we've has we've stayed our yellow. and and can we've of seen

coming labor going that off. overtime those foreseeing now are We oxide with our forward and has has again reduced initiatives paid that through costs

increased due Sustaining ounce CapEx per All-in costs, adjacent at mostly and allocation. Looking sustaining that's to

as a All-in state, pretty we our from that costs. And as remains moves to pushes nonsustaining the much in payable. CapEx our same total. a that of up classification steady CapEx sustaining opposed all That's our how had we Now capital just most reached Sustaining a

should things much on due XX,XXX liabilities more noncurrent overall to bonds, which financial markets very our we've some Blanket Blanket our our issued on be XX,XXX look working due relevant. and that that capital an to to local active a project means with XXXX. On plant online. mentioned, slight [indiscernible] have due has increased. we X solar tax And the [indiscernible] tax and swings at also increased related rate. going producer. reinvested so facilities to working growing That's the around just from about January, the certain and being acquisition rate some we reincurred being not was assets improving forward, sheet, improving. going our I've has with A oxide see our like as of income balance number to Taxation, XX.XX% losses That's of our the in noncurrent we've to forward, Bilboes to That's improve to ounce increase due some -- higher Bilboes -- capital. higher due taxable mostly increased the If to got at losses with effective came

Cash, like a million currently, we're is, negative -- of of outside the $XX in cash with sitting Zimbabwe. remains of with And Zimbabwe. cash net $XX.X is countries positive balance cash balance million, that's -- our a balance net

[indiscernible] production, in Going [indiscernible], In -- numbers forward you we that growth be as all should see of which see relative QX. should improving XXXX can our we progresses. Bilboes

Mark Learmonth

half of I XXXX to $XX focuses the Thank just want in sharp generation, and and respectively, down into of just performance fall can million to to first to with I just X where a we and about that XXXX, from leave clear gross quarter the X, of want in which and quarters that it second profitability in quarterly underlying on has X Blanket's XXXX production in ounces quarter Chester. fairly difficulties that a profit improved see dipped cash in Blanket XX,XXX faced X, million. and just you, the it in XX,XXX flowed $XX like the from XX,XXX in then very which million you And I to make clear you X quarter this wanted through XXXX. and $XX ounces quarter QX. anything make quarter terms slide,

ounces accounted that pretty X,XXX of in work $XX realized million profit, of that's by much in the for QX, progress January. gold was gross

Blanket. is we're but increasingly XXXX a It in through half the a of difficult bit core of the that. first So that it's had business the of time now comfortable now

slide. Next

Okay.

higher-than-expected the XXXX. So of the to experienced half second look, of in the we've in address terms outlook, taken steps costs

may electricity Although a it's take the say to that fair full a us resolution longer. bit usage to elevated little finding

from we've to are at Blanket decision to the XX,XXX taken and of production lower Our scale expectation production range which grade than That's relatively maintain Mine because remote to back is we've infrastructure. relatively XX,XXX volume ounces. quite previously the main low in low in somewhat indicated and areas a

means together very they're areas those cost. low are those We're operating and areas, relatively which comfortable moving very the of grade that So at X tonnes a be which volume X,XXX mine, some all of therefore, efficient. might high only high day very because

to the and encouraging reported producing on ounces consider in a on and cost. initial the [indiscernible] trying we're chasing are not spoke the revised been resource and Board that's identifying the early When management feasibility focus to view a any feedback which work reflects preparing now study at to on So XXXX implementation of appropriate mine most drilling cash-generative ounces XXXX done results and the we some with statement, of beginning the just strategy. the

that to we Currently, we're where doing will Blanket, exploration hope that, at some low-level start improve.

we've a as solid gold start said XXXX want the for at think been a fair Zimbabwe-focused, to encouraging to creates which and become, very we us has Blanket say I become, that is foundation multi-asset producer. to to it's that

So the presentation. the the formal I end of that's of part think

Maybe can questions. [indiscernible] over this I for hand

Camilla it some people questions. have detailed with -- questions raise will to As their rather -- did minds that, said, verbal with very until get your said hand, a working, I you Well, easier you having whilst e-mail if receive written find I questions. deal than

Mark Learmonth

first company. related leaving to question Dana the reasons the for The Roets

on work business the is say sides to Central new We of Dana, XX enormous have now completing entered into But in was And fair I it NDA. it's And some complete. the and we made start that is which a complete. for subject to of Bilboes context business project. last that other Shaft. is the The time contribution in over therefore, Central an to termination matters, the yet tailings facility the agreement to years, appropriate part an think with particular, the Shaft both Dana to company.

or talent. attracting well about very who've actually able recruitment pursuing And replacement excited favorably -- candidates very of be we surprised opportunity advanced. is expect some strength had reflected Caledonia. the week the no to depth so. by advanced, and difficulty process by by see update we've very of The within provide We've mean, his been I the pool the very to been for next that's

questions of a there's about plant detailed And solar lot the Blanket. at

issues up negotiations, clarify, somewhat counterparty outright sale just the back a the actually, the leaseback. of of scope is not leaseback. there consider solar currently me Having let face to we offtaker And we to It's not course maybe producing a solar that, is in -- solar due contract. increasing all, to said we're slightly is better we're sign us. very sale. this with that logical the solar And product from expected. of one than farm. trying we'd take-or-pay the only is issue And the outright and moment, risk of farm. at sale sale is proposed is First plant size the the But It to for the is the the a the clear that an transfer long-term that holding an is is farm

means that wasted the we the solar either Blanket can than storing that from which finding who buy expensive. time. in of it, there's time way the are no can real And produce surplus farm, of size more we so some have any that time, produces or to terms expand power which batteries, X at if power to use of very find gets we alternative So someone

solar our cost. But of -- puts on to a that project. of considering the is limit something that something trying the be that in will overall prospects growth the is it electricity we we reduce So it context

in really see expenditure, we on high relatively But relating buying capital focuses we now have expenditure hedge. we clear, and and capital facility Shaft, as to long as be of to the the time. is you wouldn't hedging, need the will the fact hedge me of the capital Central tailings the out we let we the -- off on from those late of expenditure, stages final options. stages put development which to those have of the levels given we time know, program, have high money the As finishing And if are levels finishing a hedged, that we horizontal didn't

paying So rise don't give in structures forward insurance an premium. hedging to it's We that engage potential margin basically or calls. sales

I move I So If e-mail, that by those we them. I've questions has, back if now anybody the which received any addressed. are have can questions further hope else to people

Chester Goodburn

we've got [indiscernible] Mark, question a here that's

Camilla Horsfall

There's X from Howard Flinker.

Howard Flinker

year? Two do questions what are, this CapEx spend to plan on you

Mark Learmonth

leave I'll it Chester, Sorry, to you.

Chester Goodburn

$XX million. over Just

Howard Flinker

much? How

Chester Goodburn

million. $XX over Just

Howard Flinker

was deferred so couldn't Zimbabwean in it, because U.S. Okay. the depreciate couldn't dollar? your sound of your dollars Is that I understand And is with taxes. essentially and the it low, tax second, you explanation

Chester Goodburn

From Look from a deferred our based and [indiscernible] with Howard, the we've Zimbabwe X scale tax tax was to scale that. I devaluation... -- U.S. -- it been say our combination Zimbabwe just doing of dollars previously, on January dollar, dollar increasing income didn't a -- on and

Howard Flinker

Can you to a get closer you, computer your sound is weak. the very little

Mark Learmonth

me in. Howard, let -- me step Let sorry,

tax we in reconcile in actually allowances is said for rate for tax back of at the that, regime it tax So -- and who spend at We means dollar who in those capital is you XX%. calculations stated okay? the tax that But year of makes by in dollar looks and XXX% Zimbabwe charge. unfavorable. accounts underlying to that dollars, absolutely just like U.S. a Having done no currency the expenditure get profits someone are a The to capital headline U.S. the them. combination report local or you looks impossible set dollars me,

the in this capital Blanket that deduct a that, of, it difference year is profit, on. income from call million, $XX comes deferred the I if that -- -- is withholding means about -- resulting as million $XX what what is expenditure. through tax the of on -- profit so The then million dare as amount And the $XX you And makes you pay tax. is that

That in clearly, will Now that's course. due tax. a not cash unwind

Bilboes, from is the can't at losses losses group entities. in those profits if we that try that Blanket tax we available perspective due separate hard makes enough, of about The use are course, the for level, at the tax problem Blanket the losses $X offset because a Bilboes at against the we X of whilst million course. they're at income of Now sense at we of can, -- Bilboes, all the incurred

Howard Flinker

but Blanket rate understood I part by large That to quarter itself. the tax fourth a in seems have

Mark Learmonth

is well, the the is in of The tax it is very are big currency, U.S. because or through and things the much local Yes. of and It quarter very this Blanket didn't correct. that understand. That's and taxes calculated in are see -- the of make dollars. that's calculated realized, taxes U.S. losses some money reverse. make But some because gains to that are of in tax it local currency, in audited difficulty it first does hard difference dollars, in of

Chester Goodburn

Can hear you me?

Mark Learmonth

Chester. Go ahead and try again,

Chester Goodburn

Yes.

deferred that Something else expense from active and add to increased XX.XX% in that's $X.X additional there the to cost. is, XX.XX%, of moving tax rate the your to tax additional tax million tax due certain liability, is deferred

Mark Learmonth

didn't end. at QX. That That's year affect

Howard Flinker

not didn't didn't I it I but I thought only I thought probably it realize was large. $X.X QX. Probably X.X%. that. understand that million was

Mark Learmonth

a of capital It large very amounts expenditure. attaches to

Further questions?

Camilla Horsfall

here There's Yes. Ian X from Joslin.

Mark Learmonth

hear just you.[indiscernible] Can't

Ian Joslin

Okay. try I'll up. turn volume just and the

Mark Learmonth

That's fine. That's fine.

Ian Joslin

the I Is you some which should means that incurred you If they're no you depreciation added incurred and capital me one the questions. is of your cost, operation, down -- to you were now to at added come ongoing depreciation to your to because think, in longer the depreciated so is balance think Central now then the have got that said Shaft effectively, cost that's sheet, what amount would that is -- the correct, that reasonable... couple to I are the becoming as to will down come I that One and sheet an point, sheet spent. becoming gets occurred on think as I just presumably Blanket? balance period, expect balance talking, a Blanket reduce costs your

Mark Learmonth

Chester saying. what that's was Yes,

a So assets depreciate over the because on per ounce fixed the we basis. --

given shortening are plan, to longer of the expect balanced of more the And the say, to the add so Shaft assets. like on other Central going to life of Shaft by I that hand, the lives life outweigh lives the of size as from buyers will the infrastructure, ounce would we Shaft reduce of come other of looking bits ounces Jethro that the benefit or bad down, certain and the arising stuff. the will that means of per Again, depreciation Central useful other mine other effect cost

Ian Joslin

shafts cost profitable like you've more helpful original resulted obviously, Talking Yes. you're basically areas. -- I as your to something would to X. how in according find understand would what shareholder plans wonder, and X production that plan, about rebalance didn't be the it the quarter different looking incurred I and go a to quarter were? which higher to And it in

you which understand the maybe process help can by that So happens...

Mark Learmonth

Well, math someone right. Ian, do maybe didn't the

Ian Joslin

Okay.

So was it? planning it issue, was just a

Mark Learmonth

whilst just said consumption using Central the isn't Shaft XXX -- it? dramatically, only when services a see infrastructure Shaft you period yes, issue, -- our when of can started quite services Well, big clearly XXX the earnest. okay? stuff meters. we commencement in -- with actually that in But hindsight, largely -- we meters, of electricity Central we the the having above we're benefit other mine the below And this issue. using And the planning increased started has planning It's a

mining use XXX Central completely So a that couple we'll And we happens, something situation unless below will infrastructure. mine, old years, to continued we're and for be exclusively level, position continue on to operations above to from where justify exclusively large unless meters, attractive the meters, the find that in meters below the of Shaft. infrastructure. we're a be very then in above then above a meters stop to we amount in then relying operate so as XXX mine, we've gravitated will a new we long XXX as XXX continuing of towards old When the inevitably

Ian Joslin

Okay.

think -- So was effectively the operations. -- your in that properly what see properly that that to be said didn't X the will wasn't results that, the that profits to doubling market But very the news was X wasn't you quarter down. mainly I hindsight, and interested when react you're said bad accounted mean, fact was also correctly that you're quarter saying X. I for And well I you

I'm to that wondering not first with was news catching in just the X down So the quarters. whether really market the up bad

Mark Learmonth

if think were, earnings were I -- the about September $X.XX you from think some at of extrapolate And the by the we earnings end itself, -- $X.XX. end of we September. September, where around think in about I

And was so was the it about which unreasonable with be be as in little drift. QX the expect $X.XX, the the outturn went expectation with about in as Perhaps certainly line of we was line for same analyst, to QX, the the with -- one of will bit year a into that other not QX, would analysts.

into true effect got I December elevated on been then until in held the which incurred anticipate late the December. And in much back quarter we slow have assumption it And earnings we end the the the that may disproportionate at effect. other of that meant large amplify poor, and of X that was some a thing we it -- sort pretty then been had think of have of costs, X the QX. makes quarter variations to quarter for And may -- that so because that effect effect

Ian Joslin

sense. see. Yes, I Yes, makes can that

Mark Learmonth

be. actually having that, will that It's as in been if we to off it closer attention have the of pay wouldn't a year the out $X.XX X But started expected said to. upset $X.XX we much quarter or we'd certainly turned have variation to start year, off the something

Ian Joslin

me I sulfides. maintenance to to got appreciate you understand before of -- Do has to led turn care take the the make what on stripping that a you been Bilboes cost effectively just you oxides and you you think the would the the put you decision -- helpful obviously be could it thought could that through just but

could its that not you how least pay You that thought and the make turned at to way case. be out

Mark Learmonth

discussed -- X sort length that at in quarter and was Yes. That well, we again, quarter X. of

and were extra team they expenditure, they mining to do needed have which They thought they certain oxide or incurred management and couldn't could of Bilboes been having what to do that stripping, capital expected it at back the cost continue it. they All in pushing the the amount resources, confident they to of XX not transpired disappointing just find either they years. a So back needed was pushing was there. for then fund do oxides terms themselves to But stripping. or

was the being really that X-month business April, to problem, and that we're June, care but able having understand so that And made in -- the and the by the maintenance we to decision contract May had of end to then period. the return a notice

of oxides oxide So project. that due we a the of part had element extracted and those that will still course bigger runoff for an the extra as remains oxides -- say month, I certain would which sulfide was in not be comfortable.

of of tens a over oxides has other it's sulfide ever want not Bilboes was the got thing absolutely I to ounces, thousands is, material. only of X.X project ounces The clear make few material. million The

and And exercise oxide of that care of maintenance, -- the have the and that's benefit have with care with done. on hindsight, kept benefit we hindsight, maintenance, hindsight, mine on and have the so embarked with put on the what of would the it and on so we we'd benefit whole immediately not oxide would

Ian Joslin

presumably if amount already there further confidence thought you've of that not then were the that of you of when -- of down, and and and problem. what the in, is, you're you've the there, level why oxides down the sure the knowledge of that for is by the it of discussed confidence was reserve that were question confidence were still of let the the oxides why wasn't the is there I'm presuming level the is sulphides further the is saying [indiscernible] [indiscernible] But of level got but you the level sulphides answer,

Mark Learmonth

to welcome oxides been and all the sulphides core have of visit direct. samples. drilled, been not directly the the very you're have Because look at And

Ian Joslin

asked occurred I'm that. to question sure me you've Yes. that it just but yourself

drilling -- basically main sulphides. been you so on has Okay, the the

of the again, probably to market. you're going sort meetings. And -- you -- saying -- I and outlined But come appreciate back but you're I to missed those this

some Sort about of Bilboes we're we're X bringing roughly years? or of scale talking X time production, what into sort talking

Mark Learmonth

within we place we critical has is thing if the be to slowly and And very critical if but be next think build. let's by going the be X can is year, would going this which time years the Debt debt the then say optimistic to Well, I get funding. -- probably relatively -- to fund in moved funding thing funding. the that,

Ian Joslin

Okay.

Okay. funding, still at raise. And not an you're looking equity debt

Mark Learmonth

one had that's and project degree we capacity to we the way who've We the people debt. of of that with high they're And because And interest be having to likely with believe development that Bilboes things going the know. to with engaged We'll a on firm with They're Western most a previous exactly at the indicated -- to that African already this carry decided what first will the forward high when team And preliminary of lenders. management going thing a lenders. that's this really happened, specific not be do project banks they proportion conversations we'll focusing know had them. in banks be already that best has our understanding up project by on. what's engagement direct we're the

the optimizing that any comes with we consider when approach. a will funding of the it form first differential, Caledonia will be so to funding to And share. NPV per view And

Camilla, further equity but partners. Any obviously potentially so of so would public markets, in terms that non-debt private can funding, joint -- markets venture And -- questions, equity you that see? also think

Camilla Horsfall

got on. and ZESA to from more you can a cost Compared solar the written improved? which has power expensive? few of is just Secondly, questions, power We've hold the reliability plant, the

Mark Learmonth

and power And We get Zimbabwe, to power by April, User called power means Group. between yet? Chester, somewhat the That's think differential used from get than Okay. mechanism government you buying Chester, have from power have that sources, getting been ZESA. IEUG, Energy that that about get from that we Intensive buying a may actually through numbers Zimbabwe been those I been okay? the that import ZESA. the from since, cheaper and me an what's We've power import X the initiative fostered memory we that's we doing We serves by directly ZESA down. into from right. is power if the do replaced the actually power now

Chester Goodburn

Yes, it's hour. about per $X.XXX kilowatt

Mark Learmonth

Okay.

-- So not pay don't we okay. $X.XXX difference. IEUG Yes, Yes. it's $X.XXX,

is come still through has slight it there power the but getting grid. by to the So benefit through IEUG a

you supply in it Africa, South ZESA get And to grid we so disruptions no is suffer voltages and as out because the very straight means we whilst and also is, get in condition. poor our outages power in power troughs continue the longer do what peaks and

X/X sunny a which years. about deal by done to during the times. So power is bit started using diesel And the of with of early that, about power the than we've of generators, second which is XXXX less had X/X, project, provides third source source for our which in then power, solar we

Our considerably unit overall our is cost has increased consumption lower. much but power average

we X just case solar appreciable that solar use we million $X.XX, XXXX, used XXXX, point, is we X.X nearly And $X.XX, liters. in diesel, of you than used before of less saving. in liters project, So million the diesel if costing the that's whereas means had an in

Chester Goodburn

hear solar. million $X.X we cost on about own first no I a Mark, maybe could our there's basis, It's the me, add So if if to And it. approximately that per blended We year. plant. you then save solar can rate

Mark Learmonth

yes, think, so by the saying, what owned is is plant I But solar Caledonia. Yes. Chester is

benefit cost, reflected in it's the reflected from your Caledonia level. is the not mine at solar And the so plant arising

that reflects cost from which in thinking solar want solar The power. buys average unit of that through nor benefit, minority project the the at neither power its rates project. consumption mine behind a shareholders solar is the the to disadvantage So Blanket we

fund. the that a Again, solar if minority answer they didn't quite quite a that to simple from sold we mean were So benefiting complex say. I'd project the power to question, costs, Blanket, it's a project the from would that shareholders

Camilla Horsfall

with How production soon beyond just regards question next can expect the to So we XX,XXX is Bilboes. gold ounces?

Mark Learmonth

indicative I that. work got in from I this you years at a think build Well, put to funding stage, it it, said, of as place, to sort highly to can a Well, takes I there's say year the X if timing.

Camilla Horsfall

And have raise Next line? the you for time do funding question, do you a plan Bilboes? how to

Mark Learmonth

market a to or getting the partners. equity the point internal is And equity Well, -- initial joint sheet, from debt, the come as I've getting venture the of the cash said, the private will approved term focus be equity, raising handle flows, on a credit equity. public balance will

Camilla Horsfall

next The question...

Mark Learmonth

approaching will to frankly, what a capacity what going we is debt we mean as do it's for not market as because, we non-debt until I funding funding. got as think idea debt better cheap the the any, call, I be be to

Camilla Horsfall

of advisory driver in the was XXXX? What key fees the

Mark Learmonth

our it because And pay have they their advisers they would Well, was just have didn't a transaction. X then pay the come had had because anyway. we we even long-running had money paid we off advisers themselves. to It Bilboes it for and -- to if cash , complex, pile for very

X our stage very involvement up fees was, think I paying It I'm else. very, a years. the very final any think, afraid I enjoy anybody was I process, more long-running than complex. don't their in

Camilla Horsfall

part... -- other feasibility expect much the do think maybe, when the I the It's completed, you to answered. been question mean be pretty I study other has think I

Mark Learmonth

Well, on consultants to various mean we're X feasibility elements get the There's the to to it. study. context just working the -- consultants, to I put more hard main

small been And geology. there than there's other oxide element underlying the little is a first removing very The of very, change material.

a tailings we we it at so project, facility. But extended optimizing end there start substantial spend. facility but capital modular we change could basis, on a minor. capital there area, the a back And Blanket to to processing the of the There's XXXX of designs course did the using again, with using no quite been view change very, we the the the period that plan longer been we that metallurgical but gained we're been expenditure no the virtually all. at over tailings by, some changes There's put of very to over new mining to a there's that have in in the So time. the but where change and experience the pit it quickly tailings,

upgraded actually study, brand-new and to and was that that quite is there. is being point study be capable be beneficial it which That a work actually published overall relatively is And needs a an which can a feasibility at of effectively of been time to to a How I level right taken weeks, that. X months. that's take? not would what's the confidence. high longer exactly they know, been time don't it's X hope maybe now. And long maybe I -- of that's that the than that's -- it it's it's component

Camilla Horsfall

have for questions. moment, else it anybody that's a Does At the question?

Mark Learmonth

Okay.

We strong mainly finish X. that, and wasn't just challenging recover half. quarter said, so start bad the off QX. in I was we year, in as a Let's QX in to got did first a

So the of I'm good Blanket we've study solid making as with its in on both making Bilboes. optimistic Blanket, hopeful expected. that cash feasibility we're now position generator and progress had rightful than more as at considerably is reestablished we progress, good we're a exploration And which

going So see ahead. it has frustrating days we're but to been hopefully better

that, So question. we'll any there's last finish unless I with think

Okay.

your you I think Camilla. attendance. we for Thank done, are

Camilla Horsfall

you, everyone. Thank

Caledonia Mining (CMCL) 3 Apr 242023 Q4 Earnings call transcript