16th Aug 2007 07:00
Caledonia Mining Corporation16 August 2007 Caledonia Mining Announces its Second Quarter 2007 Results Toronto, Ontario - August 15, 2007: Caledonia Mining Corporation ("Caledonia")(TSX: CAL, NASDAQ-OTCBB: CALVF, AIM: CMCL) is pleased to announce its secondquarter and half year 2007 operating and financial results. The financial results below are reported in thousands of Canadian dollars,except where otherwise stated. Financial Highlights (C$ 000's) Q2 2007 Q2 2006 1H 2007 1H 2006-------------------- -------- -------- -------- --------Sales from continuing operations 1,539 (1) 4,858 -Operating costs 1,963 253 6,358 548Gross (loss) from continuingoperations (424) (254) (1,500) (548)-------------------- -------- -------- -------- --------Income/(Loss) after tax beforediscontinued operations 364 (3,397) (3,545) (3,784)Net Income/(loss) for the periodafter discontinued operations 238 (2,893) (3,925) (5,159)Net Income/(loss) per share beforediscontinued operations, basic andfully diluted $0.001 ($0.009) ($0.008) ($0.010)-------------------- -------- -------- -------- -------- For the quarter ended June 30, 2007 Caledonia reported revenues of $1.54 millionfrom the Blanket gold mine, on sales of 2,922 ounces of gold and a net income,after tax before discontinued operations, of $0.4 million or $0.001 per fullydiluted share. For the half year, Caledonia's revenue was $4.86 million on salesof 7,274 ounces of gold and a net loss, after tax before discontinuedoperations, of $3.5 million or $0.008 per fully diluted share. Cash available atthe quarter end totaled $2.1 million. During the quarter, two sets of warrants of 22,890,000 and 6,998,259 warrantswere exercised at a price of $0.15 per share for proceeds, net of commission, of$4,380,233. These funds will be used for general working capital and the fundingof exploration activities at Nama. Gold production for the quarter was 2,672 ounces and 6,337 ounces for the halfyear. Production was affected by the planned shut down of No.4 shaft forrefurbishment, which is part of the planned expansion, and the lower thananticipated grades from underground. Commenting on the results, Stefan Hayden, President and CEO, said "I am pleasedto report that the Blanket mine continued operations throughout the quarter,despite the tough operating conditions in Zimbabwe, the cashflow issues faced byother gold producers and the planned expansion. Production of 2,672 ounces of gold was below the plan due to the lower thananticipated grades from underground, however the metallurgical plant and theSands plant performed well. Underground production has since resumed and we aretargeting a return to 600 tonnes a day, depending on the reliability of powersupply. Operating conditions continue to remain challenging in Zimbabwe, however if thesituation does not deteriorate further, we anticipate completing the shaftexpansion by the end of the fourth quarter and making-up a portion of thereduced second quarter production during the second half of the year. The drilling program at Nama continues, with drill cores currently beingassayed. These results will be evaluated during the third quarter and weanticipate announcing further NI43-101 results by the fourth quarter.Metallurgical testwork on product specification for a cobalt hydroxide is nearlycomplete and we hope to announce these results before year-end as well. Unfortunately we do not have any concrete updates on the sale negotiations ofthe Barbrook and Eersteling mines, however we do continue to negotiate with anumber of interested parties. Clearly this sale process is taking a long timeand we are aiming to conclude a transaction by the end of the third quarter." Certain statements included herein are "forward-looking statements". Managementcautions that forward-looking statements are not guarantees and that actualresults could differ materially from those expressed or implied in theforward-looking statements. Important factors that could cause the actualresults of operations, exploration or development programs, or the financialcondition of the Company, to differ include, but are not necessarily limited to,the risks and uncertainties discussed in documents filed by the Company with thevarious regulatory authorities having jurisdiction. Conference Call DetailsA conference call is scheduled for Tuesday 21 August, 2007 at 10.00 hours (EST).Conference ID: 436041#UK Dial-in number: +44 (0) 20 8609 0289UK Toll-free Dial-in number: 0800 358 2189Canadian Toll-free Dial-in number: 1 866 270 8076US Toll-free Dial-in number: 1 866 793 427International Dial-in number: +44 (0) 20 8609 0205 For more information, please contact: Stefan Hayden, President & CEO Alex Buck Jonathan WrightCaledonia Mining Buck-bias Seymour PierceTel: +27 11 447 2499 Tel: +44 7932 740 452 Tel: +44 20 7107 8000 Further information regarding Caledonia's exploration activities and operationsalong with its latest financials may be found at www.caledoniamining.com. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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