24th Mar 2023 12:26
(Alliance News) - Caledonia Mining Corp PLC on Friday posted an increase in annual profit and announced a GBP8.1 million fundraise.
The Zimbabwe-focused gold producer said pretax profit totalled USD39.6 million in 2021, up 4.2% from GBP38.0 million in 2021, as revenue rose by 17% to USD142.0 million from USD121.3 million.
Caledonia Mining said it produced 80,775 ounces of gold in 2022, compared to 67,476 ounces in 2021. Annual production at the Blanket mine in south west Zimbabwe was a record, the company said.
Caledonia guided 2023 gold production between 87,500 and 97,000 ounces.
Net cash from operating activities amounted to USD42.6 million in 2022, up from USD30.9 million in 2021. Production costs, however, increased to USD63.0 million from USD53.1 million.
Earnings before interest, tax, depreciation and amortisation amounted to USD50.4 million, up from GBP46.4 million a year earlier.
Chief Executive Mark Learmonth said: "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 80,000 ounces. 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."
Caledonia 56 cents per share in dividends for 2022, up 12% from 50 cents a year prior.
Caledonia also Friday said it plans to raise GBP8.1 million before expenses through a placing of shares at a price of GBP11.15 each.
The placing price represents a 13% discount to the company's closing share price on Thursday. Caledonia shares were down 12% at 1,136.00 pence each around midday Friday in London.
The placing will be conducted in UK and South Africa through an accelerated bookbuild, Caledonia said.
In addition, IH Securities Ltd will undertake a placing of depositary receipts in Zimbabwe on behalf of the company to raise GBP2.4 million at the same price.
By Xindi Wei, Alliance News reporter
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