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Caledonia Mining Corporation Plc (LSE:CMCL) has released its operating and financial results for the quarter ended June 30, 2024. The Company achieved significant improvements across key financial metrics, driven by higher gold production and a favorable gold price environment.
Financial Highlights
- Gross Revenues: Caledonia reported gross revenues of $50.1 million for Q2 2024, up from $37.0 million in Q2 2023. The increase reflects both higher gold production and an elevated gold price.
- Gross Profit: The Company’s gross profit surged by 109.8% to $22.9 million, compared to $10.9 million in the same quarter last year. This notable rise was attributed to increased gold revenues and reduced production costs.
- EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the quarter was $22.5 million, significantly up from $9.6 million in Q2 2023.
- On-Mine Cost Per Ounce: The on-mine cost per ounce at Blanket Mine was $906, slightly down from $915 in Q2 2023.
- All-In Sustaining Cost (AISC): Consolidated AISC decreased by 7.7% to $1,253 per ounce from $1,357 per ounce in the previous year. This reduction was offset by higher sustaining capital expenditure and increased administrative expenses.
- Net Cash Inflow: The group experienced a net cash inflow from operating activities of $19.1 million, a marked improvement from a $2.2 million outflow in Q2 2023.
- Cash Position: The Company’s net cash and cash equivalents increased by $12.8 million to a negative balance of $1.4 million.
Dividend Policy Update
- Quarterly Dividends: Caledonia paid a dividend of 14 cents per share in April and July 2024, corresponding to Q1 and Q2 2024 respectively.
- Timing of Future Dividends: To streamline board processes, future dividends will be declared simultaneously with the publication of quarterly results, starting with the Q3 2024 dividend expected in mid-November.
- Dividend Policy: There are no changes to the Company’s dividend policy; future dividends will continue to be assessed in line with investment opportunities and risk management practices.
Outlook
- Production Guidance: Caledonia remains on track to meet its production guidance for Blanket Mine, targeting 74,000 to 78,000 ounces for 2024.
- Bilboes Sulphide Project: The feasibility study for the Bilboes Sulphide Project is progressing and is anticipated to be completed in the first quarter of 2025.
- Exploration Activities: Exploration work continues at the Motapa project, reflecting Caledonia's ongoing commitment to expanding its resource base.
