Caledonia Min Share News (CMCL)

(Sharecast News) - Caledonia Mining reported record profitability for 2024 on Monday, underpinned by higher gold prices, stable production from its flagship Blanket Mine, and cost efficiencies.

The AIM-traded company also announced a restatement of prior financial statements due to a deferred tax accounting adjustment, though it confirmed there was no impact on historic cash flows or tax filings.

Revenue rose to $183m from $146.3m in 2023, while gross profit nearly doubled to $77m, reflecting favourable gold pricing and lower production costs, particularly at the Bilboes oxide mine.

Net attributable profit reached $17.9m, reversing a $7.9m loss from the previous year.

Operating cash flow strengthened to $42m, up from $14.8m, and adjusted earnings per share rose to 125.2 cents, swinging from a loss of 10.3 cents in 2023.

Blanket Mine produced 76,656 ounces of gold, in line with guidance.

Although Bilboes oxide production was minimal following its placement on care and maintenance in September, consolidated realised gold prices averaged $2,347 per ounce.

On-mine costs were contained at $1,073 per ounce, while all-in sustaining costs remained broadly stable at $1,506 per ounce.

The company reported improved net cash of negative $8.7m, compared to negative $11m at end-2023, and declared a quarterly dividend of 14 cents per share.

Caledonia also announced an extension to the feasibility study for the Bilboes sulphide project.

The board said the decision reflected the identification of optimisation opportunities that could materially improve project economics and reduce upfront capital spending.

They included the potential sale of concentrate in the early years of production, relocation of the tailings facility to more favourable terrain on the adjacent Motapa property, and integration of encouraging exploration results from Motapa into the development plan.

A revised timeline for the study would be communicated once the optimisation work concluded.

Caledonia said it had budgeted $41m in capital investment for 2025, with the majority allocated to Blanket and the balance directed to Bilboes and Motapa.

Production in the first two months of 2025 totalled 11,782 ounces, supporting the company's outlook.

Board changes during the period included the appointment of two new independent non-executive directors, a chief financial officer transition, and changes to committee leadership ahead of the company's AGM in May.

Caledonia reaffirmed its strategic goal of becoming a multi-asset, Zimbabwe-focused gold producer, with ongoing investment in exploration, asset optimisation and operational efficiency.

"2024 was a year of significant progress for Caledonia, both financially and operationally," said chief executive officer Mark Learmonth.

"We delivered solid gold production at Blanket, achieving 76,656 ounces, towards the upper end of our guidance.

"Our financial performance benefited from a higher gold price environment, which resulted in a significant increase in gross profit and operating cash flows."

Learmonth said Bilboes remained a "highly attractive" project, adding that the company was confident that it would find the optimal development method to maximise returns for shareholders.

"We continue to refine the feasibility study, exploring ways to enhance project economics and reduce upfront capital requirements.

"We are confident that by taking a disciplined approach we can develop the project in a way that creates long term value while maintaining financial prudence.

"Our strategic vision remains to become a multi-asset, Zimbabwe-focused gold producer that delivers sustainable value for shareholders and respective stakeholders."

At 1245 BST, shares in Caledonia Mining Corporation were up 0.35% at 928.2p.

Reporting by Josh White for Sharecast.com.