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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.£64.7m
Last close610.00p
High / Low (52 weeks)702.5p / 415.0p
Stock market listingLN, CN
Forecast net cash (US$m)14.9
Forecast gearing ratio (%)N/A
TeamResources - Mining
SectorMining

Price performance

%1m3m12m
Actual(1.6)(12.9)19.6
Relative *(0.9)(10.9)17.4

* % Relative to local index

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Company news

Investment summary

FY17 saw Caledonia Mining (CMCL) marginally beat its 54-56koz gold production guidance, drive down AISC costs, drive up its head grade increase (which had a corresponding positive effect on gold recoveries) and add significantly to its code-compliant resource base. In relation to its investment plan to lift production to 80koz by 2021, we see capex peaking this financial year (FY18), which will then allow significantly improved free cash flow generation. Coupled with an improved political environment and regulatory changes seemingly favouring gold miners (with a key objective of improving Zimbabwe’s domestic US$ currency supply), Caledonia is very well placed to capitalise on the long-overdue opening up of one of Africa’s prime geological and mining gems.

Last updated on 27/07/2018

Y/E Dec Revenue (US$m) EBITDA (US$m) PBT (US$m) EPS (c) P/E (x) P/CF (x)
2016A 62.0 23.3 19.6 106.9 7.5 3.3
2017A 69.8 26.2 22.4 79.0 10.2 2.9
2018E 74.7 29.8 24.9 170.4 4.7 2.7
2019E 80.8 40.1 33.9 223.1 3.6 2.4

Last updated on 24/07/2018

Latest video

Executive Interview - Caledonia Mining

Industry outlook

Blanket produced 12,924oz Au in Q118 and 12,657oz in Q2 which, when annualised, equates to 51koz. However, Blanket's production tends to be back-weighted to H2 and this is implicitly affirmed by the company's maintaining its stated FY18 gold production guidance of between 55koz and 59koz.

Last updated on 27/07/2018

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