Caledonia
Mining First Quarter 2011 Results
Caledonia Mining Corporation
("Caledonia") (TSX: CAL, NASDAQ-OTCBB: CALVF and AIM: CMCL) is
pleased to announce its first quarter 2011 operating and financial results.
The financial results below are reported in Canadian dollars, except where
otherwise stated.
Highlights:
- Gold production increased by 17% to 7,322 ounces compared to
6,235 ounces in the fourth quarter 2010 (Q1 2010: 3,129 ounces). Gold production in
April 2011 was 2,737 ounces.
- Average cash cost per ounce of gold produced decreased by 18%
to US$648 compared to the fourth quarter 2010 (Q1 2010: US$807).
- Average achieved price per ounce of gold was US$1,397 (Q1 2010:
US$1,107).
- Gross Profit for the quarter (i.e. before depreciation,
amortization and administrative expenses) nearly doubled to $5,248,000
compared to $2,815,000 in the fourth quarter 2010 (Q1 2010: $449,000).
- At March 31, 2011 the Corporation had net cash and cash
equivalents of $1,406,000 (December 31, 2010: $398,000).
- During the quarter Caledonia made considerable progress in
removing the remaining constraints to Blanket achieving the targeted
annual production rate.
- The 2011 drilling program commenced in March 2011 at the Konkola West area of the Nama
base metals project in Zambia.
Commenting
on the results, Stefan Hayden, President and CEO, said: "I am very
pleased to report a strong first quarter performance for 2011. The
increased production coupled with the continued strength in the gold price
and a reduction in Blanket's cash cost resulted in a substantial
improvement in Caledonia's profitability and cash generation.
"We have made significant progress during the current quarter to
address the remaining constraints which, once solved, should enable us to
reach our target of 10,000 ounces per quarter. A new ore pass was
raise-bored and commissioned on May 13, 2011. The commissioning of the
complete standby generating system commenced on May 16, 2011 and is
expected to be completed by the end of May, after which Blanket will be
able to maintain full operations during any interruption to the normal
power supply. I am confident that Blanket will achieve its targeted
quarterly production from the third quarter of 2011.
"The drilling program at the Nama base
metals project in Zambia commenced in March 2011 to identify typical
copper-belt type mineralization. This drilling program is expected to be
completed by the third quarter 2011.
On May 9 2011, Caledonia submitted its Indigenization Plan to the
Government of Zimbabwe and awaits their response."
Financial
Highlights
Condensed Consolidated
Statement of Comprehensive Income
(in thousands of Canadian dollars except per share amounts)
|
|
Three months ended
March 31
|
|
2011
|
2010
|
|
$
|
$
|
Revenue
|
11,226
|
4,458
|
Royalty
|
455
|
145
|
Production
costs
|
4,950
|
3,279
|
Amortization
|
573
|
585
|
|
Gross
profit
|
5,248
|
449
|
Administrative
Expenses
|
2,049
|
424
|
|
Results from operating activities
|
3,199
|
25
|
Finance
income
|
-
|
100
|
Finance
cost
|
155
|
15
|
|
Profit
before income tax
|
3,044
|
110
|
Income Tax expense
|
1,150
|
-
|
|
Profit
for the period
|
1,894
|
110
|
Loss on foreign currency translation
|
(714)
|
(676)
|
|
Total comprehensive
income/(loss) for the period
|
1,180
|
(566)
|
|
Earnings per share (cents)
|
|
|
Basic
|
0.38
|
0.02
|
Diluted
|
0.35
|
0.02
|
Condensed Consolidated
Statement of Financial Position
(in thousands of Canadian dollars)
|
|
Mar 31
|
Dec 31
|
|
2011
|
2010
|
|
$
|
$
|
Total
assets
|
39,910
|
34,520
|
Total
liabilities
|
14,807
|
11,699
|
Condensed Consolidated
Statement of Cash Flows
(in thousands of Canadian dollars)
|
|
Three months ended
March 31
|
Cash provided by (used in)
|
2011
|
2010
|
|
$
|
$
|
Profit
for the period
|
1,894
|
110
|
Adjustments to reconcile net cash from
operations
|
2,960
|
561
|
Changes in non-cash operating account balances
|
(72)
|
612
|
Income tax paid
|
(96)
|
-
|
|
Cash
from operations
|
4,686
|
1,283
|
Net expenditures on capital items and mineral
properties
|
3,523
|
1,025
|
Net cash from/(used in) financing activities
|
(91)
|
771
|
|
Increase/(decrease) in cash for the period
|
1,072
|
1,029
|
Cash and cash equivalents at the start of the
period
|
1,145
|
1,623
|
Cash and cash equivalents at the end of the
period
|
2,217
|
2,652
|
For more information, please contact:
Mark Learmonth
Caledonia Mining
Tel: +27 11 447 2499
|
Alex Buck
BuckBias
Tel: +44 7932 740 452
|
John
Prior/Sebastian Jones
Collins Stewart
Tel: +44 20 7523 8306
|
|