Caledonia Mining (CMCL) Q2 2024 earnings summary

Executive summary

• Q2 2024 delivered strong operational and financial performance, with record profitability driven by higher gold production, increased gold prices, and lower costs per ounce.

• Blanket Mine gold production reached 21,174 ounces, up from 17,436 ounces in Q2 2023, supported by higher tonnage and grade.

• Preliminary Economic Assessment for Bilboes Sulphide Project confirmed robust economics, targeting 1.5 million ounces over a 10-year mine life at $968/oz AISC.

• Revised Mineral and Resource Estimate at Blanket Mine doubled reserves, extending mine life to at least 2034, with plans out to 2041.

• Welcomed new COO, James Mufara, to support ongoing growth and operational excellence.

Financial highlights

• Revenue rose to $50.1 million, up 35.4% year-over-year, driven by higher gold prices ($2,300/oz vs $1,949/oz) and increased production.

• Gross profit more than doubled to $22.9 million from $10.9 million in the prior year quarter.

• Net profit attributable to shareholders was $8.4 million, reversing a $0.5 million loss in Q2 2023.

• Adjusted EPS increased to $0.51 from $0.10 year-over-year.

• Cash generation exceeded $20 million, with net cash up $12.8 million in the quarter.

Outlook and guidance

• Production guidance for Blanket Mine maintained at 74,000–78,000 ounces for 2024 and similar levels for 2025 onward.

• On-mine cost guidance held at $870–$970/oz, and all-in sustaining cost guidance at $1,370–$1,470/oz.

• Feasibility study for Bilboes Sulphide Project progressing, with funding expected to be largely debt-financed and completion targeted for Q1 2025.

• Motapa exploration ongoing, with results expected by year-end.

• Future dividends to be declared with quarterly results, with no change to dividend policy.