Highlights

  • In Q3FY24, Caledonia Mining’s gross profit rose by 36.88% to USD19.30 million, compared to USD14.10 million in pcp
  • CMCL recently announced executing "At the Market" (ATM) sales agreement with Cantor Fitzgerald & Co
  • The company targets to produce up to 78k ounces of gold for 2024

Caledonia Mining Corporation PLC (LSE:CMCL) is a FTSE AIM All-share-listed gold producer. The company explores and develops mineral properties for precious metals.

In the third quarter of financial year 2024 (Q3FY24), CMCL had a higher EBITDA ratio of 35.8% and a lower debt/equity ratio of 0.11x, compared to the industry median of 30.1% and 0.20x, respectively.

In Q3FY24, the company reported gross revenue of USD46.90 million, a decrease of 6.39% compared to USD50.10 million in the prior corresponding period. The decline was primarily due to a slight decrease in the volume of gold sold, although this was partially offset by higher value of average realized sales price during the quarter.

On the other hand, gross profit saw a notable increase of 36.88% to USD19.30 million, compared to USD14.10 million in the same quarter last year. This growth was primarily driven by the higher average realized gold price and reduced production costs at the Bilboes oxide mine.

Recent Business Update

On December 17, 2024, CMCL announced the execution of an "At the Market" (ATM) sales agreement with Cantor Fitzgerald & Co. This agreement enables the company to sell shares worth up to USD 50 million at its discretion. The net proceeds will fund the Bilboes sulphide project development.

Outlook

The company expects to record gold production of 74,000 to 78,000 ounces in 2025. It is also maintaining a similar output level for 2025. The company aims to finalise the feasibility study for the Bilboes sulphide project by 1Q2025, advance funding solutions, and commence project development. Additionally, the company will also focus on exploration activities at Motapa to support future growth initiatives.

Stock Information

The stock price of CMCL has appreciated by around 1.63% in the past six months. However, it has declined by around 8.82% in the past nine months. The stock’s 52-week low and high prices are GBX 600 and GBX 1304.84, respectively. As of 24 December 2024, the stock’s closing price is GBX 775.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is 24 December 2024. The reference data in this report has been partly sourced from EODHD/Others.