Caledonia Mining Corporation PLC · AMEX:CMCL
Caledonia Mining — Shareholder Meeting (May 2009)
39 slides from Caledonia Mining's shareholder meeting presentation, May 2009
Slide 1: AGM Presentation, May 2009
www.caledoniamining.com AGM Presentation, May 2009
Slide 2: Disclaimer
Disclaimer This presentation does not constitute, or form part of, any offer to sell or issue or any solicitation of any offer to purchase or subscribe for, any shares in Caledonia, nor shall it (or any part of it) or the fact of its distribution, form the basis of, or be relied on in connection wit
Slide 3: Contents
Contents 1. Operations Blanket Gold mine (Zimbabwe) Nama Cobalt Project (Zambia) PGM and Nickel (South Africa) 2. 2008 Financial Performance 3. Outlook 4. Questions 3
Slide 4: Blanket Gold Mine (Zimbabwe)
Blanket Gold Mine (Zimbabwe) No 4 Shaft, No 2 Shaft and Tailing Dam “A” 4
Slide 5: Blanket Gold Mine (Zimbabwe)
Blanket Gold Mine (Zimbabwe) Blanket Mine, the Metallurgical Plant and Tailing Dam “B” 5
Slide 6: Blanket Gold Mine (Zimbabwe)
Blanket Gold Mine (Zimbabwe) No 2 Shaft Personnel & Material Cage 6
Slide 7: Blanket Gold Mine (Zimbabwe)
Blanket Gold Mine (Zimbabwe) No. 4 shaft, Winder House, Road Bin and Surface Primary Crusher House 7
Slide 8: Blanket Gold Mine (Zimbabwe)
Blanket Gold Mine (Zimbabwe) No.1 Conveyor feeding the two Surface Primary Jaw Crushers 8
Slide 9: Blanket Gold Mine (Zimbabwe)
Blanket Gold Mine (Zimbabwe) No.2 conveyor from Primary Crushers feeding the Secondary Crusher stockpile 9
Slide 10: Blanket Gold Mine (Zimbabwe)
Blanket Gold Mine (Zimbabwe) No.2 and No 3 conveyors feeding the Secondary Crusher stockpile 10
Slide 11: Blanket Gold Mine (Zimbabwe)
Blanket Gold Mine (Zimbabwe) Secondary Crushing & Screening Circuit feeding the Mill Bin 11
Slide 12: Blanket Gold Mine (Zimbabwe)
Blanket Gold Mine (Zimbabwe) Secondary Gyratory Crushers and Screens 12
Slide 13: Blanket Gold Mine (Zimbabwe)
Blanket Gold Mine (Zimbabwe) Rod mill (background) & foundations for the refurbished rod mill (part of Shaft 4 Expansion Project) 13
Slide 14: Blanket Gold Mine (Zimbabwe)
Blanket Gold Mine (Zimbabwe) Gallager re-dressing table Re-dressed concentrate fed with concentrate from at approx 80% gold the Knelson Concentrators 14
Slide 15: Blanket Gold Mine (Zimbabwe)
Blanket Gold Mine (Zimbabwe) Carbon in Leach Circuit 15
Slide 16: Blanket Gold Mine (Zimbabwe)
Blanket Gold Mine (Zimbabwe) Liquid Cyanide Storage Tanks under construction, 16
Slide 17: Blanket Gold Mine (Zimbabwe)
Blanket Gold Mine (Zimbabwe) Carbon Elution and Electrowinning Circuit 17
Slide 18: Blanket Gold Mine: History
Blanket Gold Mine History • Acquired in 2006 from Kinross Gold Year to 31 December 2008 2007 2006* • Caledonia improved recoveries and profitability Ore Mined (Tonnes 000) 81.7 100.1 100.7 • Capital investment to increase production Ore Milled (Tonnes 000) 81.7 100.1 103.2 capacity from 24,000 oz pa
Slide 19: Blanket Gold Mine: Re-Starting Production
Blanket Gold Mine Re-Starting Production • 30 January 2009: announcement of New Monetary Policy – Subject to securing licenses, Zimbabwean gold producers can export gold and retain 100% of proceeds in Foreign Currency Accounts • If implemented efficiently, this creates an environment in which Blanke
Slide 20: Blanket Gold Mine: Current Status
Blanket Gold Mine Current Status • New Monetary Policy operating effectively, although it could be speeded up • Operating costs currently difficult to forecast – Historic under-investment due to economic climate in Zimbabwe has created a back-log of required capital expenditure and investment – Tran
Slide 21: Exploration: Shaft4/Lima Shaft
Blanket Gold Mine Exploration: Shaft4/Lima Shaft 2 2 3 1 1. Shaft 4 Expansion to 1060mbs: US$2.5m to complete; increase capacity to 40,000 oz pa by April 2010 (subject to funding) 2. Extension of Level 22 haulage: 1,500m completed; 1,550m to go. Provides platform for resource development drilling an
Slide 22: Broader Exploration
Blanket Gold Mine Broader Exploration • Primary exploration focus is on current mine footprint • Preliminary exploration will be undertaken on potential satellite operations to assess potential for further developments • Pace of exploration will be determined by the availability of internal cash flo
Slide 23: Blanket Gold Mine: Conclusion
Blanket Gold Mine Conclusion • Excited to have Blanket back into production, but remain cautiously optimistic – Blanket is well-paced to resume operations and attain current capacity quickly • The recent changes in Zimbabwe are encouraging, but the Government must follow through and demonstrate cont
Slide 24: The Nama Cobalt Project
The Nama Cobalt Project Targeted follow-up based on previous exploration 24
Slide 25: The Nama Cobalt Project
The Nama Cobalt Project Area covered the 4 Mining Licences - 806.25km2 25
Slide 26: 2008 Drilling on Anomaly D
The Nama Cobalt Project 2008 Drilling on Anomaly D 26
Slide 27: The Nama Cobalt Project: Current Project Status
The Nama Cobalt Project Current Project Status • ZDA Investment Licence received • EIS approval from ECZ received for new access road and both power lines • Retention licences converted into four 25 year mining licences • Zambian tax legislation amended, but still imposes a heavy tax burden at low c
Slide 28: Explored Anomalies
The Nama Cobalt Project Explored Anomalies 28
Slide 29: Nickel/PGM Properties
Nickel/PGM Properties South Africa • Caledonia has 2 Nickel/PGM properties in South Africa • Rooipoort : southern end of the Northern Limb of the Bushveld Igneous Complex (BIC) • Mapochsgronde: eastern limb of the BIC • Caledonia is in the process of concluding joint ventures with Mitsubishi Corpora
Slide 30: Rooipoort PGM/Nickel Project
Rooipoort PGM/Nickel Project South Africa Bushveld Complex: Northern Limb Property Holdings Anglo Platinum Potgietersrust Platinum Limited Ivanhoe Nickel & Platinum Mokopane PTM Rooipoort Grasvally Anooraq 2008 Exploration Priorities Current Inferred Resource: Target Area A: Resource Drilling Drilli
Slide 31: PGM/Nickel (South Africa): Current Status
PGM/Nickel (South Africa) Current Status • Rooipoort • Acquired from Falconbridge after preliminary drilling • Caledonia has New Order Prospecting Rights which are being transferred to a Caledonia subsidiary prior to completion of Mitsubishi joint venture • Transfer of Rights (even to a subsidiary)
Slide 32: Overview of 2008 Financial Performance
Overview of 2008 Financial Performance • Liquidity strong due to proceeds of Barbrook sale • RBZ failure to pay US$2.97m for gold deliveries reduces Blanket’s ability to fund working capital and complete Shaft 4 Expansion • Caledonia’s overhead structure is lean with minimal cash burn • Management t
Slide 33: 2008 Financial Performance: Profit and Loss
2008 Financial Performance Profit and Loss Deteriorating operating conditions at Blanket and eventual suspension of Summary Profit and Loss Account activities in October 2008 •C$’m 2006 2007 2008 Payment of deferred expenses to Directors subsequent to receipt of Gross Profit 5.0 0.3 3.3 proceeds fro
Slide 34: 2008 Financial Performance: Balance Sheet
2008 Financial Performance Balance Sheet Summary Balance sheet C$’m 2007 2008 Reflects proceeds for sale of Barbrook Cash and equivalents 0.0 3.7 Reduction in accounts receivable and Other current assets 4.4 1.3 inventories; 2008 balance largely Total current assets 4.4 5.0 reflects stock at Blanket
Slide 35: 2008 Financial Performance: Cash Flows
2008 Financial Performance Cash Flows Summary Balance sheet C$’m 2006 2007 2008 Broadly equivalent to withheld proceeds of Cash from operations 1.9 (1.7) (3.4) sales to RBZ Capital expenditure (3.5) (3.3) (2.7) $91k i.r.o Blanket; $2,370k i.r.o Nama Proceeds of disposal - - 9.4 Proceeds of debt 0.0
Slide 36: Outlook
Outlook • Blanket – Robust gold price – Positive developments in Zimbabwe – Encouraging progress on securing additional working capital and capital expansion funding – Cost control difficult in foreign-currency environment – Ramp-up to 24,000 oz pa well in hand; further expansion to 40,000 oz pa dep
Slide 37: Questions
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Slide 38: Contact
Contact Caledonia Mining Website: www.caledoniamining.com Stefan Hayden, President and CEO Tel: +27 11 447 2499 Email: [email protected] Mark Learmonth, Vice President Tel: +27 11 447 2499 Email: [email protected] 38
Slide 39: AGM Presentation, May 2009
www.caledoniamining.com AGM Presentation, May 2009