Welcome!

Microsoft Cloud Authors: David H Deans, Pat Romanski, Janakiram MSV, Jnan Dash, Andreas Grabner

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
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @CloudExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, New York, and 21st International Cloud Expo, which will take place in November in Silicon Valley, California.
WebRTC is about the data channel as much as about video and audio conferencing. However, basically all commercial WebRTC applications have been built with a focus on audio and video. The handling of “data” has been limited to text chat and file download – all other data sharing seems to end with screensharing. What is holding back a more intensive use of peer-to-peer data? In her session at @ThingsExpo, Dr Silvia Pfeiffer, WebRTC Applications Team Lead at National ICT Australia, looked at differ...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, discussed the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports.
SYS-CON Events announced today that Technologic Systems Inc., an embedded systems solutions company, will exhibit at SYS-CON's @ThingsExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Technologic Systems is an embedded systems company with headquarters in Fountain Hills, Arizona. They have been in business for 32 years, helping more than 8,000 OEM customers and building over a hundred COTS products that have never been discontinued. Technologic Systems’ pr...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, Cloud Expo and @ThingsExpo are two of the most important technology events of the year. Since its launch over eight years ago, Cloud Expo and @ThingsExpo have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors! In this blog post, I provide 7 tips on how, as part of our world-class faculty, you can deliver one of the most popular sessions at our events. But before reading the...
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
In his session at @ThingsExpo, Steve Wilkes, CTO and founder of Striim, will delve into four enterprise-scale, business-critical case studies where streaming analytics serves as the key to enabling real-time data integration and right-time insights in hybrid cloud, IoT, and fog computing environments. As part of this discussion, he will also present a demo based on its partnership with Fujitsu, highlighting their technologies in a healthcare IoT use-case. The demo showcases the tracking of patie...
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Have you ever noticed how some IT people seem to lead successful, rewarding, and satisfying lives and careers, while others struggle? IT author and speaker Don Crawley uncovered the five principles that successful IT people use to build satisfying lives and careers and he shares them in this fast-paced, thought-provoking webinar. You'll learn the importance of striking a balance with technical skills and people skills, challenge your pre-existing ideas about IT customer service, and gain new in...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
Buzzword alert: Microservices and IoT at a DevOps conference? What could possibly go wrong? In this Power Panel at DevOps Summit, moderated by Jason Bloomberg, the leading expert on architecting agility for the enterprise and president of Intellyx, panelists peeled away the buzz and discuss the important architectural principles behind implementing IoT solutions for the enterprise. As remote IoT devices and sensors become increasingly intelligent, they become part of our distributed cloud enviro...
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business. Though, IoT is far more complex than most firms expected with a majority of IoT projects having failed. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, Chief IoTologist at Wipro, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology portfolios and business models to adopt and leverage IoT. He will delve in...