Caledonia Mining Corp PLC (CMCL) Q1 2025 Earnings Call Highlights: Record Profits and Strategic ...
Release Date: May 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Caledonia Mining Corp PLC (CMCL) reported a strong financial performance in Q1 2025, with record gross profit doubling from $14 million to $27 million.
The company achieved a 46% increase in revenue, reaching $56.2 million, driven by a 9% increase in gold production and a 42% rise in the average realized gold price.
Operational improvements led to a record production of 19,000 ounces of gold, supported by strategic actions such as improved employee health and safety and decoupling of the plant and mine.
Caledonia Mining Corp PLC (CMCL) strengthened its balance sheet with a pro forma consolidated net cash position improving to $18.6 million following the completion of the solar sale.
The company is actively pursuing cost reduction initiatives, including the optimization of the central shaft and the deployment of a time and attendance program to manage labor costs.
Production costs increased by 19% due to higher labor, power, and consumable costs, impacting the overall cost structure.
The all-in sustaining cost was higher than the comparative quarter, influenced by increased admin and capital expenditure.
Forex losses, both realized and unrealized, continue to impact financial results, although efforts are being made to manage these effects.
The company faces challenges in maintaining grade levels, with strategic actions needed to open up reserves in better grade areas.
There are concerns about the upfront capital costs for the Bilbos project, with ongoing efforts to optimize project economics and minimize equity dilution.
Warning! GuruFocus has detected 7 Warning Signs with CMCL.
Q: James, you've provided a lot of data about the mine. Can you update us on the longer-term aspects of mine development, particularly the declines and other work? A: Unidentified_3 (COO): We've decided to focus on mining shallow reserves closer to the surface, which are less costly in terms of ventilation and energy. However, in the medium to long term, we will need to restart the declines and go deeper.
Q: Regarding Blanket dividends, what were the dividends in 2024, and how much do you expect to extract from Blanket to fund other business areas? A: Unidentified_1 (CEO): Blanket is not a cash trap, and we aim to distribute as much cash as possible without over-distributing. At the current rate, facilitation loans should be repaid in about 12 months. Unidentified_2 (CFO) added that they expect a cash balance of $50 to $60 million by year-end.
Q: With your current commitments, is it the right time to divest smaller exploration projects like Molly Green? A: Unidentified_1 (CEO): We have no intention of selling Molly Green as it is being incubated. We are focused on our current projects and have enough on our plate.
Q: You set aside $41 million in CapEx for 2025. How much has been spent so far? A: Unidentified_2 (CFO): Approximately $10 million has been spent across both Blanket and Bilbos. The main challenge is the speed of spending due to procurement and service provider lead times, not cash availability.
Q: With increased cash generation, will most of your CapEx for the rest of the year come from internal cash flows? A: Unidentified_1 (CEO): Yes, all CapEx is funded from internal cash generation. The $50 to $60 million cash balance expected by year-end is after CapEx spending.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
USA Today
21 hours ago
- USA Today
Report: Mark Walter could help LeBron James someday own an NBA team
Malk Walter, the CEO of Guggenheim Partners and the primary owner of the Los Angeles Dodgers, has reportedly agreed to purchase a majority share of the Los Angeles Lakers from the Buss family. It has made some wonder if LeBron James' desire to remain with the Lakers will be affected. According to ESPN's Dave McMenamin, this change in ownership will not have any bearing on what James decides to do for the 2025-26 NBA season. The 40-year-old has a player option for next season, and he has until June 29 to decide whether to exercise that option or opt out. In fact, an ESPN report indicated that Walter could help James with his stated goal of someday owning an NBA team. Via ESPN: "While James' decision is still pending, a source close to James suggested that Walter could be a valuable resource for James as he pursues his post-playing career goal of one day owning an NBA franchise, too." James has said multiple times that he would like to bring an expansion team to Las Vegas. While nothing is official as far as the league adding any expansion teams, commissioner Adam Silver said recently that the topic will come up at the next board of governors meeting in July, per ESPN. Walter has had a stellar track record ever since taking over the Dodgers. They have won the National League West in 11 of the last 12 seasons and have claimed the World Series championship in 2020 and 2024. They have also spared no expense when it comes to bringing in the best people throughout the organization, including superstars Mookie Betts, Freddie Freeman and Shohei Ohtani.
Hamilton Spectator
4 days ago
- Hamilton Spectator
Perseus Mining Appoints Additional Non-Executive Director
Perth, June 18, 2025 (GLOBE NEWSWIRE) — perseus mining appoints additional independent non-executive director to its board Perth, Western Australia/June 18, 2025/ Perseus Mining Limited (ASX/TSX:PRU) ('Perseus' or 'the Company') is pleased to advise that Mr James (Jim) Rutherford has agreed to join the Board of Perseus in the role of non-executive, independent Director and will take up this position with immediate effect. Jim is a seasoned investment professional with over 25 years of experience in investment management and banking, specialising in the global mining and metals sector. He has extensive international experience and brings considerable financial and corporate insight to the Board. Between 1997 and 2013, Jim was Senior Vice President at Capital Group, a long-established US investment firm, where he had responsibility for investing in the global mining and metals sector. Prior to that, he was Vice President at HSBC James Capel in New York, responsible for covering the Latin American mining industry and also worked at Credit Lyonnais Securities. Currently, he is a director of Manara Minerals Investment Co., a joint venture between the Saudi Arabian Mining Company (Ma'aden) and the Public Investment Fund (PIF) and is a non-executive director of Ecora Resources plc, positions he has held since 2023 and 2019 respectively. Earlier this year, he was also appointed as a non-executive director of Minera Cobre de Colombia, a private company that is focused on copper exploration in Colombia. From 2013 to 2020, he served as a non-executive director of Anglo-American plc, the UK-listed diversified mining group, and in 2020 was appointed Non-Executive Chairman of the gold producer Centamin plc, a role he held until late 2024. He was also Lead Independent Director of GT Gold from 2019 until its acquisition by Newmont in 2021 and, prior to that, was a Non-Executive Director and then Chairman of Dalradian Resources from 2015 to 2018. He received his Bachelor of Science in Economics and Computer Science from Queen's University, Belfast (UK) and gained his Master of Arts in Development Economics from the University of Sussex (UK). He is also an alumnus of the London Business School. Jim has also been active throughout his career in the non-profit sector and is currently a member of the Advisory Board of Queen's University Belfast Business School and a member of the Board of Governors of the Royal Belfast Academical Institution. Perseus's Non-Executive Chairman Rick Menell said: 'On behalf of the Board of Perseus, I am delighted to welcome Jim Rutherford to the Board of our Company at a pivotal time in our growth. Jim brings extensive experience in the resources sector, and his expertise in financial markets will be invaluable as we execute our strategy and continue to create long-term value for our stakeholders. His broad knowledge of the mining industry, across multiple commodities and jurisdictions, including Africa, will be a strong complement to the Perseus leadership team as we pursue our ambitions to become a leader of the gold mining industry on the continent. Jim's appointment forms part of our ongoing Board renewal process. The Board is currently considering the appointment of an additional director with specific geological expertise to further strengthen its capability' This market announcement was authorised for release by Jeff Quartermaine, Perseus's Managing Director and Chief Executive Officer.
Yahoo
4 days ago
- Yahoo
Lakers' LeBron James bluntly puts potential coaching future to bed
The post Lakers' LeBron James bluntly puts potential coaching future to bed appeared first on ClutchPoints. While LeBron James will soon become an NBA player longer than any other person in history, the 'King' apparently has no interest in sliding down the bench and becoming a coach. Advertisement James, while talking to 'Mind the Game' co-host Steve Nash, who coached the Brooklyn Nets years after retiring from the NBA as a player, made it clear that when he's done playing, he will not be following in the footsteps of many who transitioned into coaching. 'There's no way. There's no way, guys… It ain't happening. No team. Zero chance,' James said in response to a viewer's question about which team he would coach if he were to do so. Nash, immediately after reading the question aloud, also directly told James, 'Please don't coach.' James has long been considered one of the smartest players in the NBA, with other players and coaches remarking on his ability to remember games and plays from years earlier, as well as recognizing other teams' plays before they happen. Advertisement Still, coaching, especially in the NBA, has proven to be an incredibly difficult task. Not only is it difficult to win games and championships, very few coaches in the league last more than a few years, even with many games and a championship under their proverbial belt. This is evident by the fact that only two current coaches — the Miami Heat's Erik Spoelstra and Golden State Warriors' Steve Kerr — were hired before September 2020. James has also expressed interest in becoming an NBA team owner after he retires from playing, which would effectively rule out strolling the sidelines of each game as a coach. In particular, James has said he wants to bring an NBA team to Las Vegas, which has long been rumored to be among the top locations for an expansion team. According to Forbes, James has a net worth of $1.2 billion, which would be among the lowest on the list of current NBA principal owners, especially those who bought their team recently. Team prices have skyrocketed all around sports, and in March, the Boston Celtics were reportedly sold for $6.1 billion, a record in North American sports, to a group headed by private equity executive Bill Chisholm. Although James, 40, has not confirmed that he will return next season, it is expected he will do so, in the process becoming the first player in NBA history to play more than 22 seasons. Advertisement Related: NBA news: Jalen Suggs, Tyrese Haliburton cousin truth has fans losing their minds Related: Khaman Maluach gets real on how Duke prepared him for NBA Draft
