Caledonia Mining Plc(US:CMCL)2025-03-31 23:37Financial Data and Key Metrics Changes - The company reported a record gross profit of nearly $77 million for the year, an increase of 86% from 2023 [4] - Net attributable profit was just under $19 million, compared to a loss of $4 million in the previous year, reflecting stronger operating cash flow of nearly $42 million compared to just less than $15 million in the previous year [4][5] - The average realized gold price in Q4 was just over $2,600, compared to just under $1,900 in the comparable quarter of the previous year [20] Business Line Data and Key Metrics Changes - Production at Blanket was within guidance, ending the year with 76,656 ounces, a 1.6% improvement compared to 2023 [24] - Production costs at Blanket remained broadly the same at about $19 million, with gross profit increasing to $20 million compared to $11 million in the previous quarter [36] - Bilboes continued to incur losses but is now on care and maintenance, with minimal impact on overall performance [52] Market Data and Key Metrics Changes - The company experienced a significant increase in revenue due to higher gold prices, contributing to the substantial increase in gross profit [20] - The local currency, the ZiG, stabilized in Q4, leading to reduced foreign exchange losses compared to earlier in the year [46] Company Strategy and Development Direction - The company plans to extend the timeline for the feasibility study for Bilboes to optimize project economics and explore new development options [6][62] - There is a focus on maintaining stable production at Blanket and investigating near-term growth opportunities across the portfolio, including Blanket, Bilboes, and Motapa [78] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the stability of the ZiG and improvements in cash generation, indicating a positive outlook for Q1 2025 [142] - The company is focused on reducing costs, particularly in labor and electricity, to improve overall profitability [41][130] Other Important Information - The company declared a dividend of $0.14 for the quarter, totaling $0.56 for the year [7][21] - Significant changes to the Board and management have occurred, contributing to improved operational performance [8] Q&A Session Summary Question: What is the status of the solar power project, the sale of that asset? - The company expects to provide an update sometime this week [85] Question: What is the reliability of production targets from the mine? - The target is to pull out 800,000 tonnes from the shaft, which is considered stable [86][87] Question: What is the timeline for developing a reliable reserve at Motapa? - The company will take as long as necessary to ensure the best project outcome, considering the potential integration of Motapa into the feasibility study [88][90] Question: Will the tailings dam strategy change based on concentrate sales? - Yes, if permanent permission to export concentrate is granted, it could affect the tailings facility setup [93][94] Question: Is the bank debt down to about $2 million? - The company has more cash than debt, but the strategy is to maintain debt in-country and cash out of the country [102] Question: What is the effective tax rate for the company? - The effective tax rate remains high due to structural inefficiencies, with a commercial tax rate in Zimbabwe around 24% [105][107] Question: Are there plans for more retirement expenses in 2025? - Future retirement expenses will be minimal compared to 2024, as the policy will only affect a few individuals each year [118] Question: What are the greatest cost risks for 2025? - The most unpredictable cost risk is electricity, particularly if the grid collapses [130]