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.£52.5m
Last close497.50p
High / Low (52 weeks)143.0p / 69.0p
Stock market listingLN, CN
Forecast net cash (US$m)10.5
Forecast gearing ratio (%)N/A
TeamResources - Mining
SectorMining

Price performance

%1m3m12m
Actual(2.5)(4.8)(13.9)
Relative *(1.7)(2.6)(21.5)

* % 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
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

As Caledonia Mining (CMCL) continues to implement its investment plan (IP), logistical issues governing ore handling volumes and access to higher-grade ore bodies have affected gold production during Q2 and H117. Underground works to ameliorate material handling bottlenecks have taken place with successful completion, inter alia an underground tramming loop. However, grades are lower due to restricted access to the higher-grade Eroica and Lima ore bodies situated on the other side of the Central Shaft development area to the main surface haulage route – the No. 4 haulage shaft. We have adjusted our valuation to reflect this and the H117 financial results, leading to a valuation of 933p for successful implementation and operation of the Blanket IP.

Last updated on 14/09/2017

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 16.1 8.2
2016A 62.0 23.3 19.6 106.9 6.0 2.7
2017E 67.6 23.8 20.4 135.6 4.8 3.0
2018E 78.7 29.8 24.9 147.1 4.4 2.6

Last updated on 14/09/2017

Latest video

Executive Interview - Caledonia Mining

Industry outlook

CMCL produced 12,521oz of gold in Q217, a slight increase over Q1’s 12,510oz. Second-quarter cash costs were US$696/oz, 10% higher than Q117 (US$629/oz), resulting from the lower gold grades mined (3.08g/t vs a budgeted grade closer to 3.6g/t). All-in sustaining costs for Q217 were US$855/oz and 8% lower on a q-o-q basis. Q217 gold production resulted in a gross profit of US$5.0m, 16% lower than Q216 (US$5.9m). H117 gross profit was US$10.9m, up 11% from the same period a year ago, and net profit attributable to shareholders is US$3.0m, 27% lower on a l-f-l basis.

Last updated on 06/09/2017

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