Q1 2024 Caledonia Mining Corp PLC Earnings Call
quarter and so far we've seen much more stability.
Looking at a production cost on a balance on sold basis.
It was good to see that our costs at bankers remain in check throughout this quarter. Our consumer has actually come down by 4%. And that goes against the grain of inflation increases that we are seeing mostly all over the world. High inflation, high prices.
and as to some initiatives that we've implemented at our procurement department to reduce the
This is while maintaining the quality of the consumables that we are
purchasing so that was very good to see our cost coming down we do we do have a very sophisticated procurement operation based in Johannesburg which leverages the quite competitive
supply environment in Joberg, say if you want a thing for the mine, there's usually a number of people who produce that thing so you can get a good price. And then we're very good, we take receipt of it in a warehouse in Johannesburg, and we're very good at shipping it up to the mine.
quickly. If we didn't have that operation in Johannesburg, we would find it very, very difficult to
get South African-based suppliers to deal directly with a blanket mine in Zimbabwe. So I'm very pleased to see that 4% reduction. Also quite pleased to see the wages and salaries on a per round basis coming down. But as you can see, electricity is higher for reasons that Chester's just already explained.
Other than that, it's also good to see the cost coming down with Bulbos, we've spoken about that. So although I think cost came down or remained flat quite well.
As said earlier, this shows the online costs, not all-in-standing costs per ounce. We've maintained our guidance at $870 to $970 per ounce on an online cost basis.
And on all these standing costs basis, we believe this will increase and that's due to the timing of all the CAPEX thing, the scheduling of our CAPEx finish most towards the end of the asset. So that's also maintained at 1370 to 1470 for the full year.
Also, I was quite pleased to see administrative expenses coming down. It came down by about $3.3 million overall. And it came down on several fronts.
Waste the relations that was lower than a comparable quarter. Advisory services fees were $3.1 million lower and that's due to us not re incurring the bulbous acquisition cost that was a once-off cost to obtain
[inaudible]
And it's good to see that coming down. Wages and salaries from the group perspective, the reversal of a 2020 management bonus accrual and a 2024, reducing our wages and salaries.
and also our travel costs came down quarter on quarter. So all it's very good to see that the quarter four
GNA costs, the general administrative costs that we incurred that had quite a few once-off costs, you know, that these costs, or those, those ones of costs were not reoccurring into Q1 and we've
We've really focused our cost to make sure that we reduce our costs. It's really good to see that in these numbers.
The slide shows the cash generated from operations before working capital changes. As said earlier, here you can see our cash generation throughout the quarters. That was 2023 numbers looking very bleak.
But from Q1, our cost controls are in place, our production is up, we're really doing well in terms of the gold price. And if you count back that 3.6 million foreign exchange realized foreign exchange loss that was outside of our control, the route of
generated over $20 million, that is higher than our 2022 amounts when we ramped up to 80,000 ounces per annum. So really good to see the blanket's black and as cash generation generating abilities remain strong.
Over to you what? Yeah, so just in terms of the outlook, I don't know as much here that's new. We're looking at 74 to 78,000 ounces for this year and then thereafter producing at a similar level. We're well advanced in reviewing a range of development options
at Bill Bowes.
with the view exclusively to optimize the uplifting value for
Kellers and I'm hopeful that we'll get something else to investors
before the end of the month.
Exploration results of Blanket have been very encouraging and that will be translated into
a revised mineral resource statement and an increased life of mine, which will be announced shortly, which will go straight to value. And we're just about to start a first phase of drilling activity
at Metalpa. So I'm delighted that we've, we seem to have
draw the line under what was a very, very difficult, 2023. 2024 has gone off to a reasonable start. The first half of the second quarter is going very well indeed. And I think we're in a very exciting
Speaker Change: Juncture now as we begin to take this business forward materially. So at the end of the formal presentation, we can now hold it up, hold this open to questions.
Speaker Change: There are a couple of written questions. Okay, there's a first one's from Howard about the Zimdala.
Speaker Change: Okay, so the new, let's be clear on this. The new currency is called the ZIG. It was introduced, and let's face the ZIG only affects us as to 25% of our revenues. The rest of the 75% of our revenues are new as dollars and nothing has changed there.
Speaker Change: The Zig is apparently
Speaker Change: backed by assets. I'll say apparently, I've got no reason to doubt that, but I've not seen those assets.
Speaker Change: But we told that the total value of Zigs in circulation is backed by assets such as gold and other assets, which I assume would be currency, mainly dollars I'd expect.
Speaker Change: Since the introduction of the ZIG on the 5th of April , the exchange rate, I think, has gone from about 13.8 to, I think it's strengthened very slightly. So it's moved to the right direction. So basically it's been stable.
Speaker Change: as strengthened slightly. So that's the question about the ZIG.
Speaker Change: And then a question, another question, when can we expect?
Speaker Change: Can we expect to see Blanket's head grade return to four grams a ton? Well, can we just wait a few days until you get the revised
Speaker Change: mineral, to get the revised resource statement out to the next few days, we can have a more sensible conversation about that then. So we would, once we, there's quite, the resource statement is quite a complex
Speaker Change: Quite a lot of information. So that will be published sometime in the next few days, and then we will have a further call thereafter to give Sheldon investors an opportunity to ask questions specifically on that. So at this stage, I don't particularly want to answer that question right now. We'll get back to it in a few days' time.
Speaker Change: Okay, those are the only written questions we've got. Do we have any anybody wanting to ask questions in the traditional way by asking?
Speaker Change: Can I go? The line's open.
Speaker Change: The lines are open. If people want to raise their hand, it can.
Speaker Change: Yeah.
Speaker Change: I'm going to just wait a couple of days.
Speaker Change: No, no. I'm not seeing any questions.
Speaker Change: Okay, there's another question popped up.
Speaker Change: How many shares are out? So I think it's 19.1 million, is that? Chester? That's right. Yeah. Correct.
Speaker Change: Any further questions?
Speaker Change: Oh, there's another one.
Speaker Change: Thank you. Okay, thank you Alan.
Speaker Change: Unless anyone's got anything else, I think we'll draw stumps there. Thank you very much. There is going to be quite a lot of news flow coming over the next few weeks, so keep your eyes open for it. Okay, thank you all for your attendance.