Caledonia Mining Plc(US:CMCL)2025-08-13 14:00Financial Data and Key Metrics Changes - Revenue increased by 30% to $65 million, with net profit attributable to shareholders rising by 147% to just over $20 million, and adjusted earnings per share up by 155% [4][20] - Operating cash flows rose to $28 million, with a closing cash position of $26 million, including $8 million of net cash and $18 million in fixed-term deposits [5][32] - Gross profit for the quarter reached $33.8 million, up 48% compared to the previous quarter [21][29] Business Line Data and Key Metrics Changes - Blanket Mine achieved record production of just over 21,000 ounces in the quarter, leading to an increase in full-year guidance to a range of 77,500 to 79,500 ounces [5][73] - The average realized gold price was approximately $3,200 per ounce, contributing to the revenue increase [6][20] - Production costs increased by 18% due to higher grades and plant recoveries, but gross profit still saw significant growth [21][24] Market Data and Key Metrics Changes - The gold price has shown a strong upward trend, with the company realizing a price increase of 38% compared to the previous quarter [20] - The foreign exchange environment in Zimbabwe has stabilized, leading to increased liquidity and a more favorable operating environment [16][17] Company Strategy and Development Direction - The company is focused on minimizing equity dilution while maximizing net present value per share, particularly in relation to the Bilbo's project [55] - There is an ongoing feasibility study for the Bilbo's project, with considerations for a phased approach to minimize capital costs [49][50] - The company aims to continue investing in modernization and cost containment at Blanket Mine while exploring new revenue opportunities [73] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the operational environment in Zimbabwe, noting improvements in security and foreign exchange stability [15][16] - The company is committed to maintaining its dividend policy, recognizing its importance to shareholders, especially in Zimbabwe [14][81] - Future growth is anticipated through continued exploration and development of existing projects, with a focus on sustainable practices [74] Other Important Information - The company plans to follow a reduced disclosure regime for quarterly reporting, maintaining transparency while streamlining information [34][35] - The sale of the solar plant generated $22.4 million, which was part of a strategic decision to release capital for core business operations [6][29] Q&A Session Summary Question: Regarding cash generation and potential dividend suspension - Management acknowledged the importance of dividends, especially in Zimbabwe, and emphasized the need to balance cash flow with maintaining shareholder returns [81][82] Question: Timeline for the Bilbo's feasibility study completion - Management indicated that there is no specific timeline available due to ongoing evaluations of a smaller scale option [91] Question: Reduction in initial CapEx for the Bilbo's project - Management noted that capital costs have increased across the industry, and while they cannot provide specific figures, they are focused on minimizing financial jeopardy [92][93] Question: Tax rate on the capital gain from the solar plant sale - Management confirmed that there is a tax on the capital gain, but it is lower than initially expected [103][106] Question: Potential impact of cutting dividends on stock price - Management acknowledged that cutting dividends could lead to a significant drop in stock price, emphasizing the need for careful consideration before making such decisions [107][108]