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.£56.6m
Last close532.50p
High / Low (52 weeks)590.0p / 415.0p
Stock market listingLN, CN
Forecast net cash (US$m)17.3
Forecast gearing ratio (%)N/A
TeamResources - Mining
SectorMining

Price performance

%1m3m12m
Actual5.523.1(8.2)
Relative *3.220.6(14.7)

* % 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
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
Entrée 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

Caledonia’s Q3 results indicate record gold production with moderate unit cost decreases. The company is now firmly on target for its FY17 full-year guidance of 54-56koz of gold. We also consider the marked increase in gold grade mined compared with the previous quarter, as a major positive for the company. Following a marked increase in higher confidence category gold resources situated at depth, the central shaft development has been extended to add further long-term mining flexibility.

Last updated on 12/01/2018

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 17.9 9.0
2016A 62.0 23.3 19.6 106.9 6.7 2.9
2017E 68.0 24.5 21.0 129.3 5.5 2.5
2018E 78.7 29.8 25.0 148.4 4.8 2.9

Last updated on 12/01/2018

Latest video

Executive Interview - Caledonia Mining

Industry outlook

With Zimbabwe transitioning to a post-Mugabe era, it is reassuring to note that management continues uninterrupted to produce gold in line with its own guidance, and in continuing to invest in Blanket, to protect the mine’s future viability and to raise production towards 80koz pa. This target is supported by the company’s vastly improved resource base, which has further lent support and allowed CMCL to extend its Central Shaft development depth by 240m to 1,330m, at a cost of US$10m, funded (as with the entire IP) purely via cash flows. We are currently updating our forecasts.

Last updated on 13/12/2017

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
Toronto
Ontario
M5H 1A1
Canada
+1 (416) 369-9835
View website