CMCL

Caledonia Mining Corporation Plc ("Caledonia" or the "Company") (NYSE AMERICAN: CMCL; AIM: CMCL; VFEX: CMCL) announces its operating and financial results for the year ended December 31, 2022 (the "Year"). Further information on the financial and operating results for the Year and the quarter ended December 31, 2022 (the "Quarter" or "Q4") can be found in the Management Discussion and Analysis ("MD&A"), and the audited financial statements which are available on the Company's website and have been filed on SEDAR.   

 2022 Financial Highlights (USD)

• Gross revenues of $142 million (2021: $121 million).
• Gross profit of $61.8 million (2021: $54.1 million).
• EBITDA of $50.4 million (2021: $46.4 million).
• On-mine cost per ounce1 of $735 (2021: $742).
• All-in sustaining cost per ounce1 of $878 (2021: $856).
• Adjusted earnings per share (EPS)1 of 219.9 cents (2021: 225.9 cents).
• Net cash from operating activities of $42.6 million (2021: $30.9 million).
• Net cash and cash equivalents of $1.5 million (2021: $16.3 million).
• Dividend paid of 56 cents per share (2021: 50 cents per share).

Operating Highlights

• 80,775 ounces (“oz”) of gold produced in the Year (2021: 67,476oz); record annual production at Blanket Mine and achieving the Company’s long-term production target.
• During Q4, Caledonia completed the acquisition of a company owning the mining lease for Motapa, a property contiguous to the Bilboes gold project with the potential of gold processing synergy.
• In the Quarter, the 12.2 MWac solar plant at Blanket Mine started to generate power.

Post Year-end events and Outlook

• Regrettably, a fatal accident occurred on February 16, 2023. The directors and management of Caledonia and Blanket express their sincere condolences to the family and colleagues of the deceased. Caledonia takes the safety of its employees very seriously and, accordingly, measures have been taken to reinforce adherence to prescribed safety procedures.
• 2023 combined gold production guidance of between 87,500 - 97,000oz comprised of:
  • 75,000 - 80,000oz from Blanket.2
  • 12,500 – 17,000oz from the oxide operation at Bilboes.3
• In January the Company completed the acquisition of the Bilboes gold project in Zimbabwe.
  • A large high-grade gold deposit.
  • The project has NI 43-101 compliant proven and probable mineral reserves of 1.96 million ounces (“Moz”) of gold in 26.64 million tonnes (“Mt”) at a grade of 2.29 grams per ton (“g/t”) and measured and indicated mineral resources of 2.56 Moz of gold in 35.18Mt at a grade of 2.26 g/t and inferred mineral resources of 577,000oz of gold in 9.48Mt at a grade of 1.89 g/t.4
• In February the Company released an update to the NI 43-101 compliant mineral resources and reserves at Blanket Mine. The total measured and indicated mineral resources inclusive of mineral reserves has increased from the most recently published estimate by 52% to 1,095,000oz of gold in 10.72Mt at a grade of 3.18 g/t and the total mineral reserves increased by 1% to 395,000oz of gold in 3.94Mt at a grade of 3.12 g/t5.

Conference Call

Management will host a conference call on March 28, 2023 to discuss the 2022 results and the outlook for the Company.  The details for this call are set out towards the end of this announcement.

Mark Learmonth, Chief Executive Officer, commented:

“Operationally, the last 12 months have marked a turning point for the business, and I am delighted that we hit our long-term target of just over 80,000oz. The last couple of years has seen a tremendous amount of change in the Company as we pivot the direction of the business towards becoming a multi-asset gold producer in Zimbabwe. We have always seen huge geological potential in the country and are very excited about the portfolio of attractive new assets that we have acquired.

“In November we purchased Motapa, an asset we consider to be highly prospective and strategically important in our growth ambitions, as it is a large exploration property which is contiguous to the Bilboes gold project.

“In January 2023, following the satisfaction of conditions precedent, we closed the acquisition of the Bilboes Gold Project. A feasibility study prepared by the vendors indicates the potential for an open-pit gold mine producing an average of 168,000oz per year over a 10-year life of mine. Caledonia has commissioned its own feasibility study to identify the most judicious way to commercialise the project to optimize shareholder returns.  One approach that will be considered is a phased development which would minimise the initial capital investment and reduce the need for third party funding. The Company has also restarted the oxide operations at Bilboes providing immediate cash-flow and has given guidance of between 12,500 - 17,000oz for 2023.

“In November 2022, the Company’s 12.2 MWac solar plant was connected to the Blanket grid and the mine has since been receiving 27% of its energy from solar. The solar power will displace power from the grid and from the diesel generators and is expected to reduce Caledonia's consolidated cost per ounce of gold produced by approximately $37. This completion happily coincides with an improvement in the supply of power from the Zimbabwe grid which has substantially reduced the amount of diesel consumed.  We are confident that we will continue to see an ongoing meaningful reduction to our diesel usage month on month, fully justifying our investment in solar power and delivering on our Environmental Social Governance strategy.

“The quarterly dividend continues to be an important part of the Company’s strategy and during the Year we paid a quarterly dividend of 14 cents a share, providing a healthy yield to our shareholders. We believe the dividend coupled with our growth strategy makes us an attractive investment and sets us apart from our industry peers.

“I would like to thank the Caledonia team for their continued hard work, and I look forward to updating shareholders of our progress.”

Conference Call Details

A presentation of the 2022 results and outlook for Caledonia is available on Caledonia's website (www.caledoniamining.com). Management will host a conference call at 2 pm London Time on March 28, 2023.

Details for the call are as follows:

When: March 28, 2023 02:00 PM London TimeTopic: 2022 Full Year and Q4 Results call for Shareholders

Register in advance for this webinar:https://caledoniamining.zoom.us/webinar/register/WN_kZXEkm8AQZajiCX55eqLBA

After registering, you will receive a confirmation email containing information about joining the webinar.

Mr Dana Roets (B Eng (Min.), MBA, Pr.Eng., FSAIMM, AMMSA), Chief Operating Officer, is the Company's qualified person as defined by Canada's National Instrument 43-101 and has approved any scientific or technical information contained in this news release.

Enquiries:

Caledonia Mining Corporation PlcMark LearmonthCamilla Horsfall	Tel: +44 1534 679 800Tel: +44 7817 841 793
Cenkos Securities plc (Nomad and Joint Broker)Adrian HaddenNeil McDonaldPearl Kellie	Tel: +44 207 397 1965Tel: +44 131 220 9771Tel: +44 131 220 9775
Liberum Capital Limited (Joint Broker)Scott Mathieson/Kane Collings	Tel: +44 20 3100 2000
BlytheRay Financial PR (UK)Tim Blythe/Megan Ray	Tel: +44 207 138 3204
3PPB (Financial PR, North America)Patrick ChidleyPaul Durham	Tel: +1 917 991 7701Tel: +1 203 940 2538
Curate Public Relations (Zimbabwe)Debra Tatenda	Tel: +263 77802131
IH Securities (Private) Limited (VFEX Sponsor - Zimbabwe)Lloyd Mlotshwa	Tel: +263 (242) 745 119/33/39

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.

Cautionary Note Concerning Forward-Looking Information

Information and statements contained in this news release that are not historical facts are "forward-looking information" within the meaning of applicable securities legislation that involve risks and uncertainties relating, but not limited to Caledonia's current expectations, intentions, plans, and beliefs.  Forward-looking information can often be identified by forward-looking words such as "anticipate", "believe", "expect", "goal", "plan", "target", "intend", "estimate", "could", "should", "may" and "will" or the negative of these terms or similar words suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. Examples of forward-looking information in this news release include: production guidance, estimates of future/targeted production rates, and our plans and timing regarding further exploration and drilling and development.  This forward-looking information is based, in part, on assumptions and factors that may change or prove to be incorrect, thus causing actual results, performance or achievements to be materially different from those expressed or implied by forward-looking information.  Such factors and assumptions include, but are not limited to: failure to establish estimated resources and reserves, the grade and recovery of ore which is mined varying from estimates, success of future exploration and drilling programs, reliability of drilling, sampling and assay data, assumptions regarding the representativeness of mineralization being inaccurate, success of planned metallurgical test-work, capital and operating costs varying significantly from estimates, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and other factors.

Security holders, potential security holders and other prospective investors should be aware that these statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements.  Such factors include, but are not limited to: risks relating to estimates of mineral reserves and mineral resources proving to be inaccurate, fluctuations in gold price, risks and hazards associated with the business of mineral exploration, development and mining, risks relating to the credit worthiness or financial condition of suppliers, refiners and other parties with whom the Company does business; inadequate insurance, or inability to obtain insurance, to cover these risks and hazards, employee relations; relationships with and claims by local communities and indigenous populations; political risk; risks related to natural disasters, terrorism, civil unrest, public health concerns (including health epidemics or outbreaks of communicable diseases such as the coronavirus (COVID-19)); availability and increasing costs associated with mining inputs and labour; the speculative nature of mineral exploration and development, including the risks of obtaining or maintaining necessary licenses and permits, diminishing quantities or grades of mineral reserves as mining occurs; global financial condition, the actual results of current exploration activities, changes to conclusions of economic evaluations, and changes in project parameters to deal with unanticipated economic or other factors, risks of increased capital and operating costs, environmental, safety or regulatory risks, expropriation, the Company's title to properties including ownership thereof, increased competition in the mining industry for properties, equipment, qualified personnel and their costs, risks relating to the uncertainty of timing of events including targeted production rate increase and currency fluctuations.  Security holders, potential security holders and other prospective investors are cautioned not to place undue reliance on forward-looking information.  By its nature, forward-looking information involves numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and various future events will not occur.  Caledonia undertakes no obligation to update publicly or otherwise revise any forward-looking information whether as a result of new information, future events or other such factors which affect this information, except as required by law.

National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") is a rule of the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Unless otherwise indicated, all reserves and resource estimates contained in this press release have been prepared in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum Classification System. These standards differ from the requirements of 1300 S-K adopted by the SEC, and reserve and resource information contained in this press release may not be comparable to similar information disclosed by U.S. companies. The requirements of NI 43-101 for identification of reserves and resources are also not the same as those of 1300 S-K, and any reserves or resources reported in compliance with NI 43-101 may not qualify as "reserves" or "resources" under 1300 S-K. Accordingly, the mineral reserve and resource information set forth herein may not be comparable to information made public by companies that report in accordance with United States standards.

This news release is not an offer of the shares of Caledonia for sale in the United States or elsewhere. This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the shares of Caledonia, in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such province, state or jurisdiction.

 Consolidated statements of profit or loss and other comprehensive income(in thousands of United States Dollars, unless indicated otherwise)

For the years ended December 31		Note	2022		2021		2020
Revenue		8	142,082		121,329		100,002
Royalty			(7,124	)	(6,083	)	(5,007	)
Production costs		9	(62,998	)	(53,126	)	(43,711	)
Depreciation		17	(10,141	)	(8,046	)	(4,628	)
Gross profit			61,819		54,074		46,656
Other income			60		46		4,765
Other expenses		10	(11,782	)	(7,136	)	(5,315	)
Administrative expenses		11	(11,941	)	(9,091	)	(7,997	)
Cash-settled share-based expense		12.1	(609	)	(477	)	(1,413	)
Equity-settled share-based expense		12.2	(484	)	–		–
Net foreign exchange gain		13	4,411		1,184		4,305
Net derivative financial instrument expense		14	(1,198	)	(240	)	(266	)
Operating profit			40,276		38,360		40,735
Finance income		15	17		14		62
Finance cost		15	(657	)	(375	)	(367	)
Profit before tax			39,636		37,999		40,430
Tax expense		16	(16,770	)	(14,857	)	(15,173	)
Profit for the year			22,866		23,142		25,257
Other comprehensive loss
Items that are or may be reclassified to profit or loss
Exchange differences on translation of foreign operations			(462	)	(531	)	(173	)
Total comprehensive income for the year			22,404		22,611		25,084
Profit attributable to:
Owners of the Company			17,903		18,405		20,780
Non-controlling interests		27	4,963		4,737		4,477
Profit for the year			22,866		23,142		25,257
Total comprehensive income attributable to:
Owners of the Company			17,441		17,874		20,607
Non-controlling interests		27	4,963		4,737		4,477
Total comprehensive income for the year			22,404		22,611		25,084
Earnings per share
Basic earnings per share ($)		26	1.36		1.49		1.73
Diluted earnings per share ($)		26	1.35		1.48		1.73

Consolidated statements of cash flowsFor the years ended December 31,(in thousands of United States Dollars, unless indicated otherwise)

		Note	2022		2021		2020
Cash generated from operations		31	49,657		38,703		37,967
Interest received			17		14		56
Net finance costs paid			(192	)	(388	)	(405	)
Tax paid		16	(6,866	)	(7,426	)	(6,656	)
Net cash generated from operating activities			42,616		30,903		30,962
Cash flows used in investing activities
Acquisition of property, plant and equipment			(41,495	)	(32,112	)	(25,081	)
Acquisition of exploration and evaluation assets			(2,596	)	(5,717	)	(2,759	)
Proceeds from sale of assets held for sale			–		500		–
Proceeds from (purchase of) derivative financial assets			–		1,066		(1,058	)
Proceeds from disposal of subsidiary			–		340		900
Acquisition of Put options		14.1	(478	)	–		–
Net cash used in investing activities			(44,569	)	(35,923	)	(27,998	)
Cash flows from financing activities
Dividends paid			(8,906	)	(8,069	)	(4,542	)
Term loan repayments			–		(361	)	(574	)
(Repayment of) proceeds from gold loan		14.2	(3,698	)	2,752		–
Proceeds from Call options		14.2	240		208		–
Payment of lease liabilities		19	(150	)	(129	)	(118	)
Shares issued – equity raise (net of transaction cost)		24	–		7,806		12,538
Proceeds from share options exercised		24	–		165		30
Net cash (used in) from financing activities			(12,514	)	2,372		7,334
Net (decrease) increase in cash and cash equivalents			(14,467	)	(2,648	)	10,298
Effect of exchange rate fluctuations on cash and cash equivalents			(302	)	(179	)	(99	)
Net cash and cash equivalents at the beginning of the year			16,265		19,092		8,893
Net cash and cash equivalents at the end of the year		23	1,496		16,265		19,092

Consolidated statements of financial position(in thousands of United States Dollars, unless indicated otherwise)

As at December 31		Note	2022		2021
Assets
Property, plant and equipment		17	178,983		149,102
Exploration and evaluation asset		18	17,579		8,648
Deferred tax asset		16	202		194
Total non-current assets			196,764		157,944
Inventories		20	18,334		20,812
Derivative financial assets		14.1	440		–
Income tax receivable		16	40		101
Prepayments		21	3,693		6,930
Trade and other receivables		22	9,185		7,938
Cash and cash equivalents		23	6,735		17,152
Total current assets			38,427		52,933
Total assets			235,191		210,877
Equity and liabilities
Share capital		24	83,471		82,667
Reserves		25	137,801		137,779
Retained loss			(50,222	)	(59,150	)
Equity attributable to shareholders			171,050		161,296
Non-controlling interests		27	22,409		19,260
Total equity			193,459		180,556
Liabilities
Provisions		28	2,958		3,294
Deferred tax liabilities		16	5,123		8,034
Cash-settled share-based payment		12.1	1,029		974
Lease liabilities		19	181		331
Total non-current liabilities			9,291		12,633
Cash-settled share-based payment		12.1	1,188		2,053
Lease liabilities		19	132		134
Derivative financial liabilities		14.2	–		3,095
Income tax payable		16	1,324		1,562
Trade and other payables		29	17,454		9,957
Loan notes payable		30	7,104		–
Overdraft		23	5,239		887
Total current liabilities			32,441		17,688
Total liabilities			41,732		30,321
Total equity and liabilities			235,191		210,877

_____________________________

1 Non-IFRS measures such as “On-mine cost per ounce”, “All-in sustaining cost per ounce” and “adjusted EPS” are used throughout this announcement. Refer to section 10 of the MD&A for a discussion of non-IFRS measures.2 Refer to the technical report entitled "NI 43-101 Technical Report on the Blanket Gold Mine, Zimbabwe" with effective date September 1, 2022 prepared by Minxcon (Pty) Ltd filed by the Company on SEDAR (www.sedar.com) on March 13, 20233 Gold production will be derived from the measured mineral resources set out in the technical report entitled "BILBOES GOLD PROJECT FEASIBILITY STUDY" with effective date December 15, 2021 prepared by DRA Projects (Pty) Ltd and filed by the Company on SEDAR on July 21, 20224 Refer to the technical report entitled "BILBOES GOLD PROJECT FEASIBILITY STUDY" with effective date December 15, 2021 prepared by DRA Projects (Pty) Ltd and filed by the Company on SEDAR on July 21, 20225 Refer to announcement by the Company dated February 6, 2023 entitled “Mineral Resources and Reserves Update at the Blanket Mine” together with the technical report on Blanket Mine referred to at footnote 2 above