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

Price performance

Relative *(1.7)(2.6)(21.5)

* % Relative to local index

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