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.£33.4m
Last close64.00p
High / Low (52 weeks)71.5p / 38.0p
Stock market listingLN, CN
Forecast net cash (US$m)10.6
Forecast gearing ratio (%)N/A
TeamResources - Mining
SectorMining

Price performance

%1m3m12m
Actual(2.3)36.232.0
Relative *(2.3)32.244.8

* % Relative to local index

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Company news

Q&A with Caledonia Mining Corporation PLC COM SHS NPV (DI): First Quarter ...

Mon, 16 May 2016 09:33:45 GMT

Is Selling Stock Like CALEDONIA MINING CORPORATION PLC COM SHS NPV (DI) After ...

Mon, 23 May 2016 22:18:45 GMT

Caledonia Mining Corporation Plc CFO Mark Learmonth Q1 production update

Fri, 08 Apr 2016 06:27:44 GMT

Caledonia Mining Corporation Q&A: Zimbabwe - perception, indigenisation & the ...

Mon, 01 Feb 2016 11:17:31 GMT

Caledonia Mining Corporation Mark Learmonth steps up as CFO

Mon, 10 Aug 2015 07:23:13 GMT

Investment summary

Caledonia saw stable gold production at Blanket in 2015, albeit at slightly higher costs due mainly to a reduced average gold grade and additional sustaining capex. Investment accelerated with the implementation of the revised investment plan (RIP), significantly yielding ore production for the first time from below the 750m reduced level (RL) via the completed No. 6 Winze. This level is a key ‘watermark’ in that the company’s longer-term growth hinges on gold production below this depth. Such an important milestone mirrors a management team that is delivering on its 2014 initiated RIP and one that has taken precautionary measures to ensure its successful completion (inter alia, a small gold hedge).

Last updated on 03/05/2016

Y/E Dec Revenue (US$m) EBITDA (US$m) PBT (US$m) EPS (fd) (c) P/E (x) P/CF (x)
2014A 53.5 14.7 11.0 10.4 8.9 3.1
2015A 49.0 9.0 5.1 8.1 11.5 5.8
2016E 60.4 19.5 16.0 23.5 3.9 2.9
2017E 87.2 40.3 36.7 46.7 2.0 1.3

Last updated on 21/04/2016

Latest video

Executive Interview - Caledonia Mining

Industry outlook

We adjust our model for Caledonia’s FY15 accounts and its US dollar accounting format. On this basis, our DCF valuation of Blanket’s cash flows, based on the RIP’s production and cost profile, is £1.59 per share, at a 10% discount rate to reflect general equity risk and our gold price assumptions. On the same basis but using a flat gold price of US$1,200/oz, our valuation becomes £1.05. We also note that Caledonia should realise a 190% uplift in earnings in FY16, based on an average gold price of US$1,224/oz and achieving 50koz of gold production.

Last updated on 03/05/2016

Key management

Carl Jonsson, Chairman
Stefan Hayden, CEO
Steve Curtis, CFO

Company address

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