Caledonia Mining (CMCL)

Business description

Caledonia Mining mines gold at its main operating asset, the 49%-owned Blanket gold mine in southern Zimbabwe. It is also progressing its understanding of a number of promising satellite projects close to Blanket.

Stock data

Market cap.£62m
Last close117.50p
High / Low (52 weeks)143.0p / 47.0p
Stock market listingLN, CN
Forecast net cash (US$m)10.7
Forecast gearing ratio (%)N/A
TeamResources - Mining
SectorMining

Price performance

%1m3m12m
Actual7.320.5152.7
Relative *5.713.6107.0

* % Relative to local index

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Company news

Headlines for 27 January 2017

Fri, 27 Jan 2017 00:02:59 GMT

Investment summary

Caledonia Mining’s (CMCL) Q3 results indicate the Blanket mine is operating in line with expectations, bar a minor slip in the head grade, which is already improving through Q416. As such, revenue and costs remain in line with expectations and the company remains on track to meet its FY16 production target of 50koz Au. The main impacts to the company’s cash flow are non-operational, relating to share-based payments, negative forex movements (with rand strengthening affecting certain costs), as well as a non-recurring cost relating to due diligence on an investment opportunity. As a result, we have downgraded our 2016 adj. EPS estimate 25% from 24c to 18c, while noting that this still represents a y-o-y increase of 123% and a low P/E of 5.7x (cf FTSE Mining Index average of 27.1x). Caledonia’s dividend yield is currently c 5.3%.

Last updated on 21/12/2016

Y/E Dec Revenue (US$m) EBITDA (US$m) PBT (US$m) EPS (c) P/E (x) P/CF (x)
2014A 53.5 14.7 11.0 10.4 14.1 4.9
2015A 49.0 9.0 5.1 8.1 18.1 9.2
2016E 61.8 20.7 17.5 18.1 8.1 3.5
2017E 75.1 29.5 25.9 34.2 4.3 2.8

Last updated on 12/12/2016

Latest video

Executive Interview - Caledonia Mining

Industry outlook

Blanket produced a record 13,428oz Au in Q316, a q-o-q increase of 7.3% (Q216: 12,510oz Au) at cash operating costs of US$618/oz, 2% down q-o-q (Q216: US$629/oz). Q216 gold production in itself was a record. Third quarter all-in sustaining costs were US$969/oz, a slight q-o-q increase of 4% (Q216: US$936/oz).

Last updated on 21/12/2016

Key management

Carl Jonsson, Chairman
Stefan Hayden, CEO
Steve Curtis, CFO
Maurice Mason , Head of IR

Company address

Suite 4009
1 King Street West
Toronto
Ontario
M5H 1A1
Canada
+1 (416) 369-9835
View website