Caledonia Mining (CMCL) Q3 2022 earnings summary

Executive summary

• Blanket produced a quarterly record 21,120 oz in Q3, up 10% YoY; 9M output rose 18% to 59,726 oz.

• Q3 revenue rose 6% to $35.8m and adjusted profit attributable to shareholders rose 19% to $8.6m; adjusted EPS fell 12% to 60.7 cents.

• 2022 gold production guidance remained 73,000–80,000 oz; strategic growth plans included the proposed Bilboes acquisition and exploration assets.

Financial highlights

• Q3 revenue was $35.8m, up 6% YoY; 9M revenue was $107.9m, up 17%, reflecting higher gold sales.

• Q3 gross profit was $15.6m, down 1% YoY; 9M gross profit reached $50.5m, up 21%.

• Q3 adjusted profit attributable to shareholders was $8.6m versus $6.9m; 9M adjusted profit was $25.9m versus $14.2m.

• Q3 net cash from operating activities was $8.9m versus $7.1m; 9M operating cash flow was $35.8m versus $21.8m.

• Quarterly dividend declared increased 14% YoY to 14 cents per share; 9M declared dividends rose 18% to 28 cents per share.

Outlook and guidance

• 2022 production guidance was 73,000–80,000 oz; October production was almost 6,770 oz.

• The 16,500-tonne quarter-end ore stockpile contained ~1,750 oz of recoverable gold, excluded from Q3 production.

• Bilboes feasibility study projected average production of 168,000 oz annually over a 10-year steady-state mine life, subject to transaction completion and development.