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.£57.4m
Last close540.00p
High / Low (52 weeks)587.5p / 415.0p
Stock market listingLN, CN
Forecast net cash (US$m)17.3
Forecast gearing ratio (%)N/A
TeamResources - Mining

Price performance

Relative *7.514.9(8.2)

* % Relative to local index

Other companies in sector Show

Afferro Mining Afri-Can Marine Minerals
African Barrick Gold African Eagle Resources
African Minerals Alabama Graphite
Alderon Iron Ore Aldridge Minerals
Alkane Resources All Star Minerals
Allied Gold Mining Almonty Industries
Altius Minerals Altona Energy
Amara Mining Amerigo Resources
Amur Minerals Angel Mining
Anglesey Mining Anglo Pacific Group
Antofagasta Aquarius Platinum
Arian Silver Ariana Resources
Asa Resource Aspire Mining
Atalaya Mining Atlantic Gold NL
Aurcana Corporation Aureus Mining
Auriant Mining Aurizon Mines
Avalon Rare Metals Avnel Gold Mining
Baobab Resources Bear Creek Mining
Bellzone Mining Bezant Resources
Blackthorn Resources Bushveld Minerals
Cabral Resources Cadence Minerals
Caledon Resources Cameco
Canada Lithium Corporation Carpathian Gold
Celamin Holdings Central Asia Metals
Centrex Metals Champion Iron
Chatham Rock Phosphate Chieftain Metals
Coal of Africa Condor Gold
Continental Coal Cradle Resources
Dalradian Resources Danakali
Denison Mines Discovery Metals
Doray Minerals DRDGOLD
Duluth Metals Eastern Platinum
ECR Minerals Edgewater Exploration
Energy Fuels Entree Resources
Equatorial Resources Euromax Resources
European Goldfields Forsys Metals Corp
Fronteer Gold Frontier Mining
Frontline Gold Galaxy Resources
Gascoyne Resources Gemfields
GMA Resources Gold One
Gold Road Resources Gold Sector Report
Goldcrest Resources Golden Minerals Company
Goldplat Graphite Sector Report
Gunson Resources Hambledon Mining
Hecla Highland Gold
Highlands Pacific Hummingbird Resources
Ichor Coal International Mining & Infrastructure Corp
Iron Road Ironwood Gold
Jameson Resources KEFI Minerals
Kenmare Resources Kingsgate
Kinross Gold Corporation Kopy Goldfields
Lemur Resources Lepidico
Lithium Americas Corp Lithium X Energy
London Mining MacPhersons Resources
Majestic Gold Mandalay Resources Corp
Mariana Resources Matamec Explorations
MDM Engineering Group Medusa Mining
Metallica Minerals Metals Exploration
Minera IRL Mineral Commodities
Minotaur Exploration Mkango Resources
MMG Natural Resource Partners
Ncondezi Energy Nevsun Resources
New Talisman Gold Mines Nkwe Platinum
Nordgold Northern Dynasty Minerals
Norton Gold Fields NovaCopper
OceanaGold Oracle Coalfields
Orbis Gold Ormonde Mining
Orosur Mining Orpheus Energy
Pan African Resources Pan American Goldfields
Papillon Resources Petropavlovsk
Pilot Gold Platmin
PolyMet Mining Polymetals Mining
Randgold Resources Rare Element Resources
Red Rock Resources Regency Mines
Richmont Mines Rio Tinto
Robust Resources Rutila Resources
Sable Mining Seabridge Gold
Shore Gold Sirius Minerals
South American Silver Corp St George Mining
Sumatra Copper & Gold Syndicated Metals
Teck Resources Tiger Resources
Titanium Resources Group Torex Gold
Triton Minerals True North Gems
U3O8 Holdings Universal Coal
Vatukoula Gold Mines Veris Gold Corp
Victoria Gold Volt Resources
W Resources Western Areas
Wheaton Precious Metals Wits Gold
Wolf Minerals Woulfe Mining
Zanaga Iron Ore Company Zazu Metals Corporation

Company news

Investment summary

Q317 results announced on 13 November showed record gold production for the quarter from the Blanket gold mine in Zimbabwe, with 14,396oz produced at AISC of $773/oz, a 10% q-o-q reduction. As a result of this record production, third-quarter gross profit came in 7% higher q-o-q at US$7.2m, with net attributable profit to shareholders 179% higher at US$3.1m.

Last updated on 02/02/2018

Y/E Dec Revenue (US$m) EBITDA (US$m) PBT (US$m) EPS (c) P/E (x) P/CF (x)
2015A 49.0 9.0 5.1 40.0 18.9 9.6
2016A 62.0 23.3 19.6 106.9 7.1 3.1
2017E 68.0 24.5 21.0 129.3 5.9 2.7
2018E 78.7 29.8 25.0 148.4 5.1 3.0

Last updated on 24/01/2018

Latest video

Executive Interview - Caledonia Mining

Industry outlook

We have adjusted our base case valuation for Caledonia’s Q317 results, driven by an improved gold grade providing record gold production for the quarter of 14,936oz at cash operating costs of US$663/oz and all in sustaining cost (AISC) of US$827/oz. The average gold price realised fell slightly by 2% q-o-q from US$1,265/oz to US$1,238/oz. We have also included US$18m in total additional capex required for the central shaft’s depth extension. We assume that US$12m is spent over FY18 with the remaining US$6m spent during FY19 as the central shaft completes. Of most significance to our valuation is the adoption of our new gold price forecasts. Factoring in all these adjustments reduces our previous 933p base case valuation by 7% to 869p. We use a 10% discount rate to reflect general equity risk.

Last updated on 02/02/2018

Key management

Leigh Alan Wilson, Chairman
Steve Curtis, CEO
Mark Learmonth, CFO
Maurice Mason , Head of IR

Company address

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