Welcome!

.NET Authors: Pat Romanski, Elizabeth White, ChandraShekar Dattatreya, Trevor Parsons, Peter Silva

News Feed Item

Caledonia Mining Reports Record High Q3 2012 Production and Gross Profits

TORONTO, ONTARIO -- (Marketwire) -- 11/14/12 -- Caledonia Mining Corporation (the "Company") (TSX:CAL)(OTCQX:CALVF)(AIM:CMCL) is pleased to announce its operating and financial results for the third quarter 2012 ("Q3" or the "Quarter") ended September 30, 2012, which are reported below in Canadian dollars.

Operational Highlights


--  Gold produced at the Blanket Mine in Zimbabwe in Q3 reached a new all-
    time high of 12,918 ounces, 12% higher than the 11,560 ounces produced
    in the quarter ended June 30, 2012 (the "preceding quarter") and 33%
    higher than the 9,743 ounces produced in Q3 of 2011 (the "comparable
    quarter"). 
    
--  Gold production from underground mining in the Quarter was the highest
    ever produced by Blanket since its first recorded production in 1906.  
    
--  Blanket's cash operating costs in the Quarter decreased to US$508 per
    ounce of gold produced from US$547 in the preceding quarter and US$583
    in the comparable quarter.

Financial Highlights


--  Gold Sales during the Quarter were at an average sales price of US$1,673
    per ounce compared, to an average sales price of US$1,599 in the
    preceding quarter and an average sales price of US$1,737 in the
    comparable quarter. 
    
--  Gross Profit for the Quarter (i.e. after depreciation and amortization
    but before administrative expenses and the Indigenisation related
    expenses referred to below) was $12,602,000, a new record high, which
    was 25% higher than the $10,067,000 achieved in the preceding quarter
    and 35% higher than the $9,364,000 achieved in the comparable quarter. 
    
--  Cash flow from continuing operations in the Quarter, before capital
    investment, was $12,364,000 compared to $8,653,000 in the preceding
    quarter and $9,206,000 in the comparable quarter. 
    
--  Net cash and cash equivalents generated per share in the Quarter was 1.2
    cents compared to 0.36 cents in the preceding quarter and 2.9 cents for
    the nine months to September 30, 2012 compared to 1.14 cents for the
    nine months to September 30, 2011. 
    
--  At September 30, 2012 Caledonia had cash and cash equivalents of
    $24,615,000 compared to $18,323,000 at June 30, 2012 and $6,847,000 at
    September 30, 2011. 
    
--  Caledonia's annualised return on shareholders' funds (before the non-
    cash based expenses arising from the implementation of indigenisation
    and non-cash adjustments arising from exchange rate movements on inter-
    company balances) was 61%. 
    
--  During the Quarter Blanket made payments in respect of direct and
    indirect taxes, royalties, licence fees, levies and other payments to
    the Government of Zimbabwe totalling US$8.4 million compared to US$7.9
    million in the preceding quarter and US$3.8 million in the comparable
    quarter. 

Nama Base Metals Project, Zambia


--  The 2012 drilling programme continued with the objectives of further
    identifying and defining extensions of the mineralised zone identified
    in 2011 and increasing the confidence level of the information on this
    mineralised zone. As at October 25, 2012, 30 holes and 8,400 metres of
    drilling had been completed and three rigs are currently working on the
    site. 
    
--  To date, an area of copper mineralization has been defined as follows: 
    
    --  current identified strike length of 1.3 km and a dip extent of 900
        metres; 
        
    --  mineralisation intersected at depths from 98 to 579 metres; 
        
    --  thickness of mineralized zone varies from 10 to 27 metres; 
        
    --  average copper grade of 0.52%; and 
        
    --  possible extensions of the mineralized zone to the west and to
        depths below 580 metres will be drill tested in future.  
        
--  The 2012 drilling programme is expected to be completed shortly
    following which the drill results will be analysed and interpreted.
    Caledonia expects to issue an NI 43-101 compliant copper resource and
    reserve statement by June 30, 2013.  
    
--  Caledonia will continue to manage its cash resources so that it retains
    the financial capacity to progress this project as fast and as far as
    possible without requiring third party involvement or equity funding.

Indigenisation


--  On October 11, 2012 Caledonia announced the completion of the
    Indigenisation of Blanket following which Caledonia now owns 49% of
    Blanket. 
    
--  Caledonia has received the Certificate of Compliance from the Government
    of Zimbabwe which confirms that Blanket is fully compliant with the
    Indigenisation and Economic Empowerment Act.  
    
--  Caledonia's strong operating performance was converted into an
    attributable net loss after tax for the Quarter of $7,240,000 after a
    non-cash, non-recurring charge of $14,161,000 due to the implementation
    of the Indigenisation of Blanket. 
    
--  As an indigenised entity, Blanket can now develop and implement its long
    term growth strategy. The newly constituted Blanket Board, which
    includes representatives of the Indigenous Zimbabwean shareholders, has
    approved a capital investment programme for 2013 and a 4 year growth
    strategy for 2014 to 2017. Work has commenced on a new development
    project at Blanket (the No. 6 Winze Project) which is expected to result
    in a 70% increase in ore production from 2015. This programme will be
    funded from Blanket's internally generated cash and is expected to
    result in progressive increases in gold production over the next five
    years. 

Commenting on Caledonia's performance, Stefan Hayden, President and CEO, said: "The third quarter of 2012 showed a substantial improvement in gold production at the Blanket Mine in Zimbabwe. Gold production in the quarter was 12,918 ounces - 12% higher than the preceding quarter and 33% higher than the third quarter of 2011. This was the highest quarterly gold production ever achieved by Blanket Mine since its first recorded production in 1906, and whose previous owners include Falconbridge and Kinross Gold.

Increased gold production, further improvements in gold recoveries and continued close attention to costs contributed to a reduction in average operating costs from US$547 per ounce of gold produced in the preceding quarter to US$508 per ounce of gold produced. Blanket is now one of the lowest cost gold producers in both Africa and the world.

The strong operating performance is a testament to the hard work of the management and employees at Blanket and shows the benefits of Caledonia's investments in the Blanket Mine.

Following the implementation of indigenisation, Blanket, as a highly profitable and cash-generative gold producer and with Caledonia's financial, technical and administrative support, is well-positioned to implement its growth strategy. Work continues at Blanket's satellite development properties and on the deeper level development and exploration at the Blanket Mine. In addition, work has also commenced on a new development project at Blanket Mine, the No. 6 Winze, which is expected to give rise to an approximate 70% progressive increase in production, commencing in three to four years.

As expected, the implementation of indigenisation at Blanket resulted in a large non-cash accounting charge which adversely affected our reported profit. This charge, which is a non-recurring item, had no impact on Caledonia's strong cash generation. Details of the highly complex accounting for indigenisation is set out in the unaudited consolidated financial statements for the Quarter, which are available on Caledonia's website.

Work continues at the Nama base metals project in Zambia. I expect that Caledonia will be in a position to issue a resource and reserve statement by the end of June, 2013, as previously advised.

Caledonia's financial position continues to improve. With almost $25 million of cash on hand Caledonia has sufficient cash resources to invest in its existing projects and also in potential new opportunities."

Caution Regarding Forward Looking Statements:

Information included in this release constitutes forward-looking statements. There can be no assurance that future exploration will identify mineralisation that will prove to be economic, that anticipated metallurgical recoveries will be achieved, that future evaluation work will confirm the viability of deposits that may be identified or that required regulatory approvals will be obtained.

Dr. Trevor Pearton, BSc Eng. (Mining Geology), PhD (Geology) FGSSA, VP Exploration, is the Company's Qualified Person as defined by NI 43-101. Dr. Pearton is responsible for the technical information provided in this Release.

Further information regarding Caledonia's exploration activities and operations along with its latest financials and Management Discussion and Analysis may be found at www.caledoniamining.com.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
Cultural, regulatory, environmental, political and economic (CREPE) conditions over the past decade are creating cross-industry solution spaces that require processes and technologies from both the Internet of Things (IoT), and Data Management and Analytics (DMA). These solution spaces are evolving into Sensor Analytics Ecosystems (SAE) that represent significant new opportunities for organizations of all types. Public Utilities throughout the world, providing electricity, natural gas and water, are pursuing SmartGrid initiatives that represent one of the more mature examples of SAE. We have s...
The security devil is always in the details of the attack: the ones you've endured, the ones you prepare yourself to fend off, and the ones that, you fear, will catch you completely unaware and defenseless. The Internet of Things (IoT) is nothing if not an endless proliferation of details. It's the vision of a world in which continuous Internet connectivity and addressability is embedded into a growing range of human artifacts, into the natural world, and even into our smartphones, appliances, and physical persons. In the IoT vision, every new "thing" - sensor, actuator, data source, data con...
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff happens, where data lives and where the interface lies. For instance, it's a mix of architectural styles ...
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, discussed single-value, geo-spatial, and log time series data. By focusing on enterprise applications and the data center, he will use OpenTSDB as an example t...
An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and assessments, including a decade of leading incident response and digital forensics. He is co-author of t...
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, discussed how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money!
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges. In his session at @ThingsExpo, Jeff Kaplan, Managing Director of THINKstrategies, will examine why IT must finally fulfill its role in support of its SBUs or face a new round of...
One of the biggest challenges when developing connected devices is identifying user value and delivering it through successful user experiences. In his session at Internet of @ThingsExpo, Mike Kuniavsky, Principal Scientist, Innovation Services at PARC, described an IoT-specific approach to user experience design that combines approaches from interaction design, industrial design and service design to create experiences that go beyond simple connected gadgets to create lasting, multi-device experiences grounded in people's real needs and desires.
Enthusiasm for the Internet of Things has reached an all-time high. In 2013 alone, venture capitalists spent more than $1 billion dollars investing in the IoT space. With "smart" appliances and devices, IoT covers wearable smart devices, cloud services to hardware companies. Nest, a Google company, detects temperatures inside homes and automatically adjusts it by tracking its user's habit. These technologies are quickly developing and with it come challenges such as bridging infrastructure gaps, abiding by privacy concerns and making the concept a reality. These challenges can't be addressed w...
The Domain Name Service (DNS) is one of the most important components in networking infrastructure, enabling users and services to access applications by translating URLs (names) into IP addresses (numbers). Because every icon and URL and all embedded content on a website requires a DNS lookup loading complex sites necessitates hundreds of DNS queries. In addition, as more internet-enabled ‘Things' get connected, people will rely on DNS to name and find their fridges, toasters and toilets. According to a recent IDG Research Services Survey this rate of traffic will only grow. What's driving t...
Connected devices and the Internet of Things are getting significant momentum in 2014. In his session at Internet of @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, examined three key elements that together will drive mass adoption of the IoT before the end of 2015. The first element is the recent advent of robust open source protocols (like AllJoyn and WebRTC) that facilitate M2M communication. The second is broad availability of flexible, cost-effective storage designed to handle the massive surge in back-end data in a world where timely analytics is e...
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using the URL as a basic building block, we open this up and get the same resilience that the web enjoys.
We are reaching the end of the beginning with WebRTC, and real systems using this technology have begun to appear. One challenge that faces every WebRTC deployment (in some form or another) is identity management. For example, if you have an existing service – possibly built on a variety of different PaaS/SaaS offerings – and you want to add real-time communications you are faced with a challenge relating to user management, authentication, authorization, and validation. Service providers will want to use their existing identities, but these will have credentials already that are (hopefully) i...
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
P2P RTC will impact the landscape of communications, shifting from traditional telephony style communications models to OTT (Over-The-Top) cloud assisted & PaaS (Platform as a Service) communication services. The P2P shift will impact many areas of our lives, from mobile communication, human interactive web services, RTC and telephony infrastructure, user federation, security and privacy implications, business costs, and scalability. In his session at @ThingsExpo, Robin Raymond, Chief Architect at Hookflash, will walk through the shifting landscape of traditional telephone and voice services ...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at Internet of @ThingsExpo, James Kirkland, Chief Architect for the Internet of Things and Intelligent Systems at Red Hat, described how to revolutioniz...
Bit6 today issued a challenge to the technology community implementing Web Real Time Communication (WebRTC). To leap beyond WebRTC’s significant limitations and fully leverage its underlying value to accelerate innovation, application developers need to consider the entire communications ecosystem.
The definition of IoT is not new, in fact it’s been around for over a decade. What has changed is the public's awareness that the technology we use on a daily basis has caught up on the vision of an always on, always connected world. If you look into the details of what comprises the IoT, you’ll see that it includes everything from cloud computing, Big Data analytics, “Things,” Web communication, applications, network, storage, etc. It is essentially including everything connected online from hardware to software, or as we like to say, it’s an Internet of many different things. The difference ...
Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world.