Caledonia Mining (CMCL) Q3 2024 earnings summary

Executive summary

• Q3 2024 gold production at Blanket Mine was 18,992 ounces, down from 21,772 ounces in Q3 2023, with full-year guidance maintained at 74,000–78,000 ounces.

• Revenue reached $46.9 million for the quarter, driven by higher gold prices, while gross profit rose to $19.3 million year-over-year.

• Encouraging exploration results at Motapa support the strategy of building a mid-tier, Zimbabwe-focused gold producer.

• Sale of the 12.2MWac solar plant for $22.35 million will release capital while maintaining exclusive energy supply and supporting renewable energy strategy.

• Dividend of $0.14 per share declared, reflecting commitment to shareholder returns and payable December 6, 2024.

Financial highlights

• Q3 2024 revenue was $46.9 million, up 14% year-over-year, with gross profit rising 37% to $19.3 million.

• Net profit attributable to shareholders fell 50% to $2.3 million in Q3 2024, impacted by $3.1 million in foreign exchange losses.

• Average gold price realized increased 29% to $2,447/oz in Q3 2024.

• On-mine cost per ounce (consolidated) increased 13.7% year-over-year to $1,056 in Q3 2024; AISC for Q3 was $1,501/oz, up 18% year-over-year.

• Cash and cash equivalents at September 30, 2024 were $7.2 million.

Outlook and guidance

• Full-year production guidance reaffirmed at 74,000–78,000 ounces for 2024, with similar levels targeted for 2025.

• On-mine cost guidance for 2024 at Blanket increased to $950–$1,050/oz; AISC guidance revised to $1,450–$1,550/oz.

• Feasibility study for Bilboes sulphide project expected Q1 2025, with funding options under active consideration.

• Focus on cost control initiatives, including power factor correction, labor efficiency, and equipment upgrades, with expected savings from 2025 onward.

• Continued exploration at Motapa and Blanket, targeting resource definition and near-term oxide development.