CMCL - Earnings call transcript Q1 2024 | Caledonia Mining Corporation Plc

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Camilla Horsfall

Good morning, welcome to our Q1 2024 results call for shareholders.

On the call from Caledonia, you have Mark Learmonth, our CEO; Chester Goodburn, our CFO; Victor Gapare, our Executive Director; and then myself, Camilla Horsfall, I'm the Vice President of Group Communications.

As always, we're going to run through the presentation, and we will have questions at the end.

If you do have a question, we just ask you to raise your hand. We find that's a better format than the written Q&A. I'm now going to pass you over to Mark, who will start the presentation.

Mark Learmonth

Camilla. you, Thank forward? move disclaimer. Can That's we the

on the page. next Moving to

Okay.

it quick So most hand because financials. overview over a of to to presentation do I to before just the going Chester, this relates who's

the the quarter certainly On quarter very which first it much of was improved whole, from was XXXX, challenging. a

It's to into enormous focus, of production get to try we area improve costs, pleasing see we'll an continue an Before and improvement and further. in safety. and

XXXX, supported to in was XXXX. XX days amounts start in favorable XXXX the to strong by the a quite this production, but and just ounces this a quarter quarter of We to price. higher it XX,XXX just due logistical it's moving Dubai. into between go is the level cutoff produced We of of only So normally and the challenges first ounces production gold we significant. In detail, due that with large of early gold compared quarter the production wouldn't the over under XX,XXX to to Harare relating quarter had mine, first

So we relatively off have go to early.

XX of only year. first working the days working quarter to the days in compared So quarter XX last in

X So in context, look it even quarter that better. makes

this of Dana was the business Africa standing say to large the South I is XX,XXX are the -- of know, very effect February. between of as gold previous that for for and the at open-pit us XX,XXX the ounces. at Xst Harmony, but of His operations, been in have set mining. about and for who James the matter have mining on minute, left Johannesburg. Africa's he'll him think miners. May. better people not happening XX,XXX X,XXX he Chief from is those In of joins Officer with at Bulawayo, On a South position moment, -- from puts X.X one guidance Roets, feet underground. James very James we're production us We're Zimbabwean, know it's then behind year. joined He based closer He Bilboes. will a call be at all you and much in and responsible which relocate don't skill mine so Operating well our site ounces Mufara at which has you the year includes of end a pleased personnel in the of to due course initially, mining hopefully and gold underground would producing much employing today, to Blanket X due million what's at course, he is

So to we're pleased very him. see

results, earlier life year. think, drilling very also announced terms which on in, each the very of mineral of of will this better restarted put encouraging increased Blanket. drilled X/X of and converted deep revised out level and We've another August hole we exploration January will X Basically, in About sets exploration in year year last resource program that And some we XXXX. mine. shortly early We and of results I then back width be the a statement, published X grade. be an into came one in

May. Can the mentioned helps, $XX.X since just price less mentioned that's from shareholders. $X,XXX incidents. in days from of the uplift Yes, year the nearly end announcement than that million, of of gross about up average uptick project $X the increasing consistently safety to fall to was move we're X that at on dividend mentioned shortly. first the in $X,XXX, view year. a million safety away from I'd Caledonia than on very, production to for net profit quarter, a $XX -- to the of We this look XX,XXX. $X.XX less end production, the $XX and of of $X,XXX, million the very at end for should ways optimizing gold the $X up the I've XX,XXX shareholders to million on. by commercialize swam work million higher you that, the sulfide profit a the Clearly, to at of we a million weeks been we the Bilboes, some pretty $X large-scale last to We much quarter. maintained very again share looking end production And at on from advanced $X,XXX. from an So of and Clearly, expect we've out we're revenue with quarterly at making to the January pleasing running in paid loss profit April. quarter a certainly of

that fair exchange it $X.XX to the million, foreign don't quarter say want if that ointment of fly pretend exist. only I continue life quarter. a much in if last pretty ignore quarter you was I to a first challenging due to wish into It's one Chester away, this us. can't now loss for the -- in on to million, foreign exchange year about the loss. $X has first $X.X rate, foreign $X.XX very the loss in share pieces, converted loss of substantial that of the is been going in the side, will it incur talk losses a about at including course. there all makes profit in that exchange doesn't But the we're some putting which

a significant turnaround. forward. So we Should operationally, very move

basically quarterly The bottom recovery. shows graph just Okay, there's top to production Blanket at in back the mean and information quite the XXXX, grade the on lot tonnes. you the a graph of quarterly shows the I going this graph. shows it

a much what say, grams tonne can X.X a a there's gone orange X.X in level, tonne. from much what graph, grade, would think that think to I XXXX the X, I grams But of in information the a line the lot has out steadily point top is you here. see is I down pretty about -- low

gold one that go we will that benefit the out forward grade revised an all -- a It published resource and come have you more and recovery. statement things a improves pattern very to higher during a at on. calendar quarter a as year, again, closely, typically gets you next has from of what on subdued the happening we've see get you grade April we're very quarter And ounce X. closely mine it's subdued and it can from the continue far in better best. And that And very that, the relatively improvement then per to are the XXXX. see ways much year the shortly on May, graph, if at the is relatively of is a cost effect bottom at in by starts comfortable you there that clear can get goes into then in Based will QX very seen the note, year, as when and each the again, into off was

of now bulk financials. through over I'll the really to over rest the for presentation the hand the run Okay. Chester you. of to Chester, to

Chester Goodburn

gold that ] where also QX. we record ounces really It's in includes [ in a quarter. produced to time at That Sales sold comes you. prices. sorry, the produced QX. in that Solar under and ounces produced ounces XX,XXX we seen in And production for sold fact just Thank we QX X,XXX similarly, we've record X,XXX that and QX in was good see --

Blanket for was comes At the ounce, price of and and online year. average pretty see part the should that got very Our fixed quarter of much base. in that cost quarter-on-quarter, gold the going a $XXX latter Mine, big the $X,XXX cost with flat per we down we've

days got quarter down quarter we bring ounce you've X, X, if have will So going that our that in that means more per your cost quarter should forward. online in

between OpEx cost basis... on per $XXX $XXX and maintained we've ounce an guidance of So online

Mark Learmonth

to can Chester, the the explain an ounce short people just of ounce about the just Can understand. far that, cost not in step-up of in you current $X,XXX old ounce. level were $XXX so you an mine explain per XXXX

Chester Goodburn

That's right. Yes.

XXXX that Shaft we to additional that's increased Central about started inflation XXXX. XXXX, electricity increases $X costs million since and we've consumption due in seen on the from to mostly based So of

So markets will QX correction few our reductions some we're we've using consumption our so look se of we also and to some Other of quite looking plan in Blanket. on with the information, we at at per Shaft overall far, of are with reducing that most a XXXX, see just and we factor back now up to than our to on that, and how electricity initiatives we other usage, cost. Blanket should at initiatives, we'll that and to implement the our Central working using come to come shafts transition at

cost are table our $X,XXX lower on basis, discussing plan what place of the the to and spend in $X,XXX. that's that's methods to were an that all-in for costs year. timing consumption. On standing are the that there than and we've And currently reduce electricity given of we in that to due on year. So to CapEx of spend our latter part guidance we That's $X,XXX the ideas between the

to useful gross additional of cost million life should to depreciation about [indiscernible] our could our as includes at to $X charge the our of see So That meters stop mine, as benefit we have in the electricity we that plan a on as that shafts XXX result predominantly soon under and due $XX.X you profit increasing of that also million. explained. incurred mine we've

turn that to XXXX share profitable, lot Our that cash positive good good around it's It's and that we for they quarter of egos is so had the a see quarter earnings was far. Blanket had. producing a per $X.XXX and

the following earnings to but losses you adjusted in per So FX that foreign slides. we'll Mark with this losses is to back the we where the exchange count share, alluded get earlier,

to in maintained spend CapEx, million. cash amounted at guidance but we've investing of our to $XX $X.X the QX that in Our million We activities, used more Blanket. to QX, plan

realized be spend factor So to It's flows working in a quarters. Operating million, that the $X.X the increase it's countered capital of amounted loss that back. movements cash timing of before million all will just foreign within $XX.X exchange to and includes plan. future a

have did than in ZAR we devaluations if X. more So these our didn't produced of massive have dollar, we quarter cash XXXX would we

Mark Learmonth

we towards on do that to rapidly. goods weren't country, the devaluing quarter, working working to time, But that was quarter quite in due very, before we holding was this minimize very to Part can substantial think of that of movements currency, be local extent which is to buying and move from which capital end in are very, the we prepaying we so holding us and we're before capital, equipment that time variations for

about we delays transmission to intermediary get you also down KYC. banks quite of through U.S. arising in funds to money back foreign just large that send confused to into Zimbabwe, who exchange have from time because the comes then and they Dubai time from movements And some get Dubai the

large, that So quite working one contributed of changed the relatively markedly end the to QX, has capital since low the the then. has to been things that's and better that of balance actually cash

interrupt, you to move on, Chester. Sorry

Chester Goodburn

loss, in future XX average, production quarter days, increase days in bang for it's Thanks. That's production in increase good XX% it more Profit received. get due we production with to days, the quarter X And due we've bang X. X% to XX% for On earlier. revenues XX days basically price buck we see got comparable and the that's million. at our our We quarter cost or means gold base, more said and that that had in to fixed ounces to more than quarters. our the as $XX.X production

are So overall a check. it's costs quarter. production good very in

incurring the good online quarters. ounce not And still the costs very been exceeding to we've revenues that's losses relatively some Bilboes gaining -- costs. of Our some lies main that's the are oxides much at to care heap we flat see that breaking focus about in cost where now our maintenance. basis, is and incurring even of talking Bilboes, those a It's where and the Bilboes and Blanket, on per activity extent breakeven leaching and prior remained

or is you we've can a But $X.X Zimbabwean And had reduced realize under use gold on quarter the that April. really profit shafts. $X.X cost end, due X Depreciation, was exchange shortened gross that the Zimbabwe to And ounces effect. X devaluation that. about so see of year-end spoken currency that Zim of introduced of to the dollar, that the line, government So we losses after foreign million million, we cash subsequently the for I've our yes, Bilboes level.

transacting And them. that we've been from currency in

at transacting So of in there's bit a a and delay first.

The but the the are see first And quite we to nice slow, Xth of April Zig. X weeks what's Zig's strengthened is was now. from in actually the that to transacting

all by on, exchange foreign currency and backed it's based gold So reserves.

the reoccur if and these forward. followed, foreign are measures not currently doing gold those Zig going if strength believe we So losses it's that exchange as would

Mark Learmonth

of currency. In was the at exponentially we X holding the dollar towards we're paid less from. bit exchange get actually X quarter, more it XX% quarter dollar days. that that substantially I Zimbabwe the And rate we just losses receivable, the the currency. just before to slightly about devaluation gold gold. foreign paid Actually, of takes for finished. where worth the in it accelerated these it in was But normally, I RTGS that sell whilst terms, end think we or by can the rate come time X-day our this local which short, that context as country local a booked So The about so weeks payment was got of which for We meant in of than it.

the the small a of of local And receivable, we're the cash. be on was component shortly the currency was would that's one of end loss component component the the quarter. our on relatively introduced holding the other after of third as currency new VAT So the in of loss says, loss, Chester and that amounts

seen far, much more we've so stability. And

Chester Goodburn

remain balance production see to It Blanket Looking good sold was checked on that we costs our at costs our quarter. -- throughout a this basis. at

the are Our department that mostly increases of that grain and maintaining to and at implemented while And high reduce come consumables has some of goes to prices. that's the we've actually by high our procurement due against we the purchasing. the is inflation we X%, seeing all that world that are quality the initiatives over inflation consumables down

So it to coming cost is down. our very good see

Mark Learmonth

environment do Johannesburg, operation Johannesburg. supply We have based which quite sophisticated a very procurement in in competitive leverages the

up thing very our we suppliers that find to African-based shipping of we're price. would it -- to want receipt directly we're a number good a the take it can Johannesburg, If operation produce good. in very So mine to then in difficult the so quickly. Mine a Zimbabwe. you we mine, that very South if who there's Johannesburg, very, good at in of you didn't deal thing Blanket for usually get have it And a with warehouse We and in get people

down. see, already Chester that pleased to for see X% as But on very is basis you that reduction. higher to I'm quite So see a salaries wages Also can the and pleased per electricity ounce just explained. reasons coming has

Chester Goodburn

cost that, Other about coming it's also that. we've good see down. Bilboes, spoken the than to

came So all -- remain I we think cost down, flat quite well.

ounce. this $XXX shows per costs sustaining maintained online As an an of on said CapEx the per and earlier, or And all-in all cost cost of towards the -- all-in basis. $XXX an guidance cost on believe due online to our and We've we've sustaining CapEx spend mostly to that's scheduling this found will increase the timing of our basis, asset. the we ounce

salaries and Bilboes once-off the came bonus perspective. a $X,XXX than Bilboes, were acquisition relations. down. see to not maintaining down. was from That I the That an travel and investor us ounce administrative reducing It obtain million reversal That Advisory came services down that's by management cost. a comparable and down to it's fronts, see down for year. Also, to million salaries accrual good cost $X,XXX and coming the pleased expenses a $X.X was quite costs as the several group wages XXXX our reoccurring that lower and overall. was year, quarter. on of to of $X.X coming fees our was lower also a quarter-on-quarter. There So full about came Wages to XXXX also

we've that although cost, we see and administrative it's quarter are cost sure reduce costs incurred that that one-off our G&A cost. recurring few very and make the X of these general a quite QX, once good costs, that fund into in focused to those that our costs costs, had So overall not to we who really we

the numbers. capital slide before cash So This in it's these that to really shows from operations generated see changes. good working

here, see place. QX, in very said can cost from was quarters earlier, our cash are bleak. throughout I you XXXX numbers generation But controls As looking the

in that We're when of $X.X we XXXX higher up. was realized ramp $XX is that control, our generated amounts is count really doing foreign price. foreign million exchange that million. you over than of outside production would've annum. of the back loss And if gold XX,XXX Our well terms up to That per our exchange ounces

you, really good back, remain strong. Over generation So to see -- Mark. to and the Blanket's abilities its generating cash

Mark Learmonth

Yes.

range before new. at thereafter to shortly, as be here out a that very and So similar start a a year and looking just investors go options about at mine, I'm outlook, in value. been that's at just to And increased which mineral the we'll the exploration to which in will advanced We're in Blanket end will month. something life XX,XXX And statement will much the results view first exclusively for then of with phase the at a the uplift revised terms reviewing translated we're XX,XXX that hopeful of to of straight of have activity for announced well shareholders. to Motapa. an of resource be at get encouraging, producing drilling into level. And ounces value and Caledonia optimize We're Bilboes this development

a very, that we a drawn So very XXXX, reasonable a we start. line off what seem I'm delighted have difficult to under was to got XXXX.

begin second forward take indeed. very exciting going we think First to business quarter I And well a in half very or juncture the of this as is we're materially.

So we it to formal now that's the open questions. can hold the of presentation, end

Camilla Horsfall

There of questions. couple written are a

Mark Learmonth

Okay. from the how is first one about There's a Zim-dollar?

Okay.

currency new changed Since that, U.S. to the XX% revenues. revenues ZIG by is clear our those other dollars is no assets, such strengthened rate, the which is The -- assets. ZIG in total to circulation we're only of the that assets I has face, about there. Xth doubt would has seeing on from I'm So dollars I to backed of But expect. our assets. by apparently, be say value was in moving and nothing on think but and of rest XX% not told ZIG, ZIGs of introduced, let's I'd as called us The April, think, I've let's of the I The ZIG got the and apparently gold It's mainly it assume the affects I currency, this. are exchange it's backed direction. reason new the the the XX.X% of be very right slightly. to gone introduction

So basically, has been strengthened slightly. stable, it's

that's Blanket's then. So to get expect ZIG. And a -- just wait the about can until the the then to the question question, we about can grade X question sensible grams -- few a more the when return that in you to on and result a tonne. Well, expect next get conversation a we we days statement days, can out few revised have we revised can mineral

we is information. would -- once lot a So complex, the of quite quite statement resource a

be will next left to call the that give an in days. a and have will then further ask investors published few shareholders And on sometime questions specifically So we opportunity that. to

days' I So that answer want to to particularly in a few now. at back right We'll time. get this it stage, don't question

we've lines questions open. wanting have the any Okay. only to Do That was we questions written have traditional anybody Could way in we asking? the by ask the got.

Camilla Horsfall

raise people want yes. Not to any can, seeing The open. they their If are hand, lines questions.

Mark Learmonth

How are shares popped seeing out? So think isn't it's up. it, any There's Chester? I another question questions. many XX.X Not million, No.

Chester Goodburn

Correct. Right.

Mark Learmonth

Thank you. Any further questions.

Okay. Alan Thank you, ]. [

Okay.

draw of is lot stumps much. next go basis, to the flow be think I There think a over we'll to there. coming that news few else, weeks. then on very going I you Thank anything lets quite

your eyes it. So open keep for

attendance. all you your for Thank Okay.

Caledonia Mining (CMCL) 13 May 242024 Q1 Earnings call transcript