Caledonia Mining (CMCL) Q3 2024 earnings summary

Executive summary

• Q3 2024 gold production at Blanket Mine was 18,992 ounces, down from a record 21,772 ounces in Q3 2023, but full-year guidance of 74,000–78,000 ounces remains on track.

• Motapa exploration delivered encouraging results with new oxide discoveries and significant high-grade mineralization.

• Sale of the 12.2MWac solar plant for $22.35 million will release capital while maintaining exclusive energy supply; a second phase is being evaluated.

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

• A fatality occurred at Blanket Mine in September 2024; safety measures and external reviews are being reinforced.

Financial highlights

• Q3 2024 revenue was $46.9 million, up 14% year-over-year, driven by a 29% rise in gold prices.

• Gross profit rose 37% to $19.3 million compared to the same quarter last year.

• Net profit attributable to shareholders fell 50% to $2.3 million in Q3 2024, impacted by $3.1 million in FX losses and higher costs.

• On-mine cost per ounce increased 13.7% year-over-year to $1,056; AISC for Q3 was $1,501/oz.

• Operating cash flow for Q3 2024 was $21.2 million; net cash from operating activities was $4.6 million, down from $14.5 million in Q3 2023.

Outlook and guidance

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

• On-mine cost guidance for 2024 set at $950–$1,050/oz; AISC guidance at $1,450–$1,550/oz, with cost-saving initiatives underway.

• Feasibility study for Bilboes sulphide project expected in Q1 2025, with funding discussions progressing.

• Continued exploration at Motapa and Blanket, focusing on near-term oxide potential and resource definition.