Caledonia Mining Company Plc: Outcomes for the quarter and 9 months ended September 30, 2024

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ST HELIER, Jersey, Nov. 11, 2024 (GLOBE NEWSWIRE) — Caledonia Mining Company Plc (“Caledonia” or “the Firm”) (NYSE AMERICAN: CMCL; AIM: CMCL; VFEX: CMCL) broadcasts its working and monetary outcomes for the quarter and the 9 months ended September 30, 2024 (the “Quarter” and “9 months” respectively).  Additional data on the monetary and working outcomes for each could be discovered within the administration dialogue and evaluation (“MD&A”) and the unaudited monetary statements, which can be found on the Firm’s web site and are being filed on SEDAR+ and EDGAR. 

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Monetary and Company Highlights

• Revenues within the Quarter of $46.9 million; 9 months’ income of $135.5 million.
• Gross revenue within the Quarter of $19.3 million elevated from $14.1 million within the third quarter of 2023 (the “comparable quarter” or “Q3 2023”) because of the increased gold worth and decrease prices of the Bilboes oxide mine.
• Consolidated on-mine value per ounce for the Quarter of $1,056 (Q3 2023: $928). The rise was primarily as a consequence of decrease ounces offered and better manufacturing prices at Blanket.
• The group’s all-in sustaining value (“AISC”) for the Quarter was $1,501 per ounce (Q3 2023: $1,268 per ounce), the rise being as a consequence of decrease ounces offered, increased on-mine prices (primarily labour and electrical energy) and elevated cash-settled share-based cost bills within the Quarter because of the enhance in Caledonia’s share worth.
• Primary IFRS earnings per share (“EPS”) for the Quarter of 12.0 cents (Q3 2023: 24.1 cents).
• Adjusted EPS¹ for the Quarter of 26.2 cents (Q3 2023: 29.9 cents).
• Internet money from working actions within the Quarter was $4.6 million, decrease than the $14.5 million earned within the comparable quarter as a consequence of decrease working earnings, elevated realised international alternate losses because of the devaluation of the Zimbabwean forex (“ZiG”), elevated tax funds as a consequence of timing of funds, and elevated working capital as a consequence of accelerating spend on stock ranges throughout the Quarter to assist preventative upkeep initiatives and cut back potential manufacturing delays. Working cashflow within the Quarter earlier than working capital actions was $16.2 million (Q3 2023: $16.3 million).
• An extra dividend of 14 cents per share has been declared on November 11, 2024 and will likely be paid on December 6, 2024. To streamline the administration regarding board processes, and as beforehand introduced, dividends are actually anticipated to be accepted concurrently the publication of quarterly outcomes.  

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Operational Abstract

• Regrettably, a fatality occurred on September 21, 2024 because of a rock fall whereas a Blanket mine worker was performing assist drilling actions in a decline space. Caledonia takes the protection of its staff very critically and, accordingly, measures have been taken to strengthen adherence to prescribed security procedures.
• Quarterly gold manufacturing of 18,992 ounces was decrease than the 21,772 ounces produced within the comparable quarter (which established a brand new manufacturing report) as a consequence of decrease grade and decreased metallurgical recoveries.
• Gold produced within the 9 months was 56,815 ounces (9 months 2023: 55,244 ounces) at Blanket.
• Caledonia reiterates gold manufacturing steerage for 2024 of between 74,000 and 78,000 ounces² at Blanket.
• On-mine value steerage for 2024 at Blanket has elevated to between $950 and $1,050 per ounce from the earlier steerage of $870 to $970 per ounce as a consequence of increased labour and electrical energy prices. Administration is pursuing initiatives to attain value reductions in each of those areas.
• A conditional sale settlement to promote the corporate which owns the 12.2MWac photo voltaic plant for $22.35 million, payable in money, was signed on September 30, 2024. Upon completion of the sale, Caledonia will realise a revenue on the $14.3 million building value whereas Blanket will retain the unique provide of vitality.
• $2.3 million enhance in stock ranges throughout the Quarter to assist preventative upkeep initiatives and cut back potential manufacturing delays. $2.7 million deliberate within the final quarter of 2024.
• Caledonia has printed encouraging outcomes from its current exploration programme at Motapa, which comprised deeper drilling under historic open pits and shallower drilling in a brand new goal space.

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Technique and Outlook: elevated concentrate on development alternatives

The quick strategic focus is to:

• Keep manufacturing at Blanket on the focused vary of 74,000 to 78,000 ounces for 2024 and at an analogous stage for 2025;
• Full the Caledonia feasibility research on the Bilboes sulphide mission (anticipated first quarter of 2025); progress growth funding options; start growth of the sulphide mission; and
• Proceed with exploration actions at Motapa.

Commenting on the announcement, Mark Learmonth, Chief Govt Officer, stated:

“I’m happy to report that manufacturing for the Quarter was according to expectations and we stay on monitor to satisfy our manufacturing steerage for the yr.

“Regrettably, throughout the Quarter we had a fatality at Blanket. I want to prolong our condolences to the household and pals of the deceased. We stay dedicated to bettering our security efficiency and delivering a zero-harm setting.

“We proceed to discover methods to cut back on-mine prices at Blanket – notably the price of electrical energy and labour the place a number of initiatives are being applied and additional measures are into consideration.

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“In parallel, we proceed to fastidiously handle our cashflows and dealing capital, albeit we have now made the strategic resolution to speed up funding in stock ranges throughout the Quarter to assist preventative upkeep initiatives and cut back potential manufacturing delays. This funding would have beforehand been scheduled for 2025. Our money reserves have additionally been negatively impacted by the forex devaluation in Zimbabwe throughout the Quarter.

“Throughout the Quarter, Caledonia introduced the signing of a conditional sale settlement to promote the subsidiary that owns the 12.2MWac photo voltaic plant which provides energy to Blanket for $22.35 million. Completion of the sale will return capital to Caledonia at a key second within the Firm’s development trajectory whereas retaining the unique vitality offtake, guaranteeing roughly 20% of Blanket’s day by day electrical energy requirement continues to be met by renewable energy.

“Blanket stays a stable basis for our development profile in Zimbabwe; our exploration actions at each Blanket and Motapa proceed to ship encouraging outcomes, enjoying to our future development ambitions.

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“We proceed to progress the revised feasibility research for the Bilboes sulphide mission with a concentrate on capital allocation and count on to finish this within the first quarter of 2025. We’re additionally making encouraging progress in the direction of figuring out and implementing a funding construction for Bilboes with the target of minimising fairness dilution and optimising the uplift in web current worth per Caledonia share. We’re excited by this chance to evolve our enterprise and broaden our manufacturing profile, which we consider will generate important long run shareholder worth.”

Caledonia will host a web-based presentation and Q&A session open to all buyers on 11 November at 14.00 London Time

You’re invited to a Zoom webinar.

When: Nov 11, 2024 02:00 PM London

Matter: Q3 2024 Outcomes name for Buyers

Register prematurely for this webinar:

https://caledoniamining.zoom.us/webinar/register/WN_ZHTT-Ji5RDylrtSaSYE0fA

After registering, you’ll obtain a affirmation e mail containing details about becoming a member of the webinar.

Enquiries:

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Craig James Harvey, MGSSA, MAIG, Caledonia Vice President, Technical Companies, has reviewed and accepted the scientific and technical data contained on this information launch. Craig James Harvey is a “Certified Individual” as outlined by every of (i) the Canadian Securities Directors’ Nationwide Instrument 43-101 – Requirements of Disclosure for Mineral Tasks and (ii) sub-part 1300 of Regulation S-Ok of the U.S. Securities Act.

Word:

This announcement accommodates inside data which is disclosed in accordance with the Market Abuse Regulation (EU) No. 596/2014
(“MAR”)
because it kinds a part of UK home legislation by advantage of the European Union (Withdrawal) Act 2018 and is disclosed in accordance with the Firm’s obligations underneath Article 17 of MAR.

Cautionary Word Regarding Ahead-Trying Data

Data and statements contained on this information launch that aren’t historic details are “forward-looking data” or “forward-looking statements” throughout the which means of relevant securities laws (collectively, “forward-looking data”) that contain dangers and uncertainties relating, however not restricted, to Caledonia’s present expectations, intentions, plans, and beliefs. Ahead-looking data can typically be recognized by forward-looking phrases akin to “anticipate”, “consider”, “count on”, “objective”, “plan”, “goal”, “intend”, “estimate”, “may”, “ought to”, “could” and “will” or the adverse of those phrases or related phrases suggesting future outcomes, or different expectations, beliefs, plans, aims, assumptions, intentions or statements about future occasions or efficiency. Examples of forward-looking data on this information launch embody: manufacturing and price steerage, estimates of future/focused manufacturing charges, our plans and timing concerning additional exploration and drilling and growth at Motapa, the event of the Bilboes Sulphide Undertaking, the continuation of dividend funds, the forex devaluation in Zimbabwe, and our plans and timing concerning the completion of the sale of the 12.2MWac photo voltaic plant. This forward-looking data relies, partially, on assumptions and components that will change or show to be incorrect, thus inflicting precise outcomes, efficiency or achievements to be materially completely different from these expressed or implied by forward-looking data. Such components and assumptions embody, however aren’t restricted to: failure to determine estimated sources and reserves, the grade and restoration of ore which is mined various from estimates, success of future exploration and drilling packages, reliability of drilling, sampling and assay information, assumptions concerning the representativeness of mineralization being inaccurate, success of deliberate metallurgical test-work, capital and working prices various considerably from estimates, delays in acquiring or failures to acquire required governmental, environmental or different mission approvals, inflation, adjustments in alternate charges, fluctuations in commodity costs, delays within the growth of tasks and different components.

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Safety holders, potential safety holders and different potential buyers ought to be conscious that these statements are topic to identified and unknown dangers, uncertainties and different components that would trigger precise outcomes to vary materially from these urged by the forward-looking data. Such components embody, however aren’t restricted to: dangers regarding estimates of mineral reserves and mineral sources proving to be inaccurate, fluctuations in gold worth, dangers and hazards related to the enterprise of mineral exploration, growth and mining, dangers regarding the credit score worthiness or monetary situation of suppliers, refiners and different events with whom the Firm does enterprise; insufficient insurance coverage, or lack of ability to acquire insurance coverage, to cowl these dangers and hazards, worker relations; relationships with and claims by native communities and indigenous populations; political danger; dangers associated to pure disasters, terrorism, civil unrest, public well being issues (together with well being epidemics or outbreaks of communicable ailments such because the coronavirus (COVID-19)); availability and rising prices related to mining inputs and labour; the speculative nature of mineral exploration and growth, together with the dangers of acquiring or sustaining essential licenses and permits, diminishing portions or grades of mineral reserves as mining happens; international monetary situation, the precise outcomes of present exploration actions, adjustments to conclusions of financial evaluations, and adjustments in mission parameters to cope with unanticipated financial or different components, dangers of elevated capital and working prices, environmental, security or regulatory dangers, expropriation, the Firm’s title to properties together with possession thereof, elevated competitors within the mining trade for properties, gear, certified personnel and their prices, dangers regarding the uncertainty of timing of occasions together with focused manufacturing charge enhance and forex fluctuations. Safety holders, potential safety holders and different potential buyers are cautioned to not place undue reliance on forward-looking data. By its nature, forward-looking data entails quite a few assumptions, inherent dangers and uncertainties, each normal and particular, that contribute to the chance that the predictions, forecasts, projections and numerous future occasions is not going to happen. Caledonia undertakes no obligation to replace publicly or in any other case revise any forward-looking data whether or not because of new data, future occasions or different such components which have an effect on this data, besides as required by legislation.

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¹ Adjusted EPS excludes web international alternate actions (together with the deferred tax impact and the non-controlling curiosity thereon) and deferred tax. A reconciliation of IFRS EPS to Adjusted EPS is ready out in part 10.3 of the MD&A.
² Confer with technical report “NI 43-101 Technical Report on the Blanket Gold Mine, Zimbabwe” with efficient date December 31, 2023 ready by Caledonia Mining Company Plc and filed by the Firm on SEDAR+ (www.sedarplus.ca) on Could 15, 2024

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