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Caledonia Mining Corp PLC on Friday posted an increase in annual profit and announced a £8.1 million fundraise.
The Zimbabwe-focused gold producer said pretax profit totalled $39.6 million in 2021, up 4.2% from £38.0 million in 2021, as revenue rose by 17% to $142.0 million from $121.3 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 $42.6 million in 2022, up from $30.9 million in 2021. Production costs, however, increased to $63.0 million from $53.1 million.
Earnings before interest, tax, depreciation and amortisation amounted to $50.4 million, up from £46.4 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 £8.1 million before expenses through a placing of shares at a price of £11.15 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 £2.4 million at the same price.
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