GlobeNewswire Inc | Nov 11, 2021 02:00AM EST

November 11, 2021

ST HELIER, Jersey, Nov. 11, 2021 (GLOBE NEWSWIRE) -- Caledonia Mining Corporation Plc (NYSE AMERICAN: CMCL; AIM: CMCL) ("Caledonia" or the "Company") announces its operating and financial results for the quarter and the nine months ended September 30, 2021 (the "Quarter" and "Nine Months" respectively). Further information on the financial and operating results for the Quarter and Nine Months can be found in the management discussion and analysis ("MD&A") and the unaudited financial statements which are available on the Company's website and have been filed on SEDAR.

Financial Highlights for the Quarter

-- Gross revenues of $33.5 million, a 31.9 per cent increase on the $25.4 million achieved in the third quarter of 2020 ("Q3 2020"). -- Gross profitof $15.7 million, a 25.6 per cent increase on the $12.5 million in Q3 2020, due to higher production and lower cost per ounce offset in the Quarter by a lower gold price. -- EBITDAof $15.1 million, a 30 per cent increase on the $11.7 million in Q3 2020 at a margin of 45 per cent (Q3 2020: 46 per cent). -- The on-mine cost per ounce1 decreased 8% from $758 in Q3 2020 to $695 due to higher production which spread fixed costs over more production ounces. -- The all-in sustaining cost per ounce decreased 19% from $1,119 in Q3 2020 to $909. This reflects the decrease in on-mine cost per ounce and reduced sustaining capex. -- Basic IFRS earnings per share ("EPS") increased by 56 per cent from 36.6 cents in Q3 2020 to 57.1 cents. -- Adjusted EPSincreased by 102 per cent from 34.1 cents in Q3 2020 to 68.9 cents. -- Net cash from operating activities of $7.1 million (Q3 2020: $5.3 million) due to higher operating profit offset by higher working capital. -- Net cash and cash equivalents of $13.0 million (Q3 2020: $21.6 million). -- In October 2021, the Company declared and paid a quarterly dividend of 14 cents per share. This was the seventh increase in the quarterly dividend since October 2019 and more than double the 6.875 cents declared only two years ago in October 2019

Operating Highlights

-- 18,965 ounces of gold produced in the Quarter (Q3 2020: 15,155 ounces) which is a new quarterly production record for Blanket and reflects the contribution of Central Shaft. -- 48,872 ounces produced in the Nine Months, a 14 per cent increase on the 42,887 ounces produced in the first nine months of 2020.

Outlook

-- Production guidance for the year to December 31, 2021 has been narrowed at the top end of previous guidance at 65,000 to 67,000 ounces. -- Due to, inter alia, historic delays in the completion of the Central Shaft arising from COVID-19, the need to remediate the poor electricity supply from the Zimbabwe Electricity Supply Authority, and an upgrade to the workers village to accommodate a larger workforce, capital expenditure at Blanket in 2022 is now expected to be $27million. -- Caledonia has completed the purchase of the mining claims at Maligreen in the Zimbabwe midlands. -- Caledonia continues to evaluate Connemara North, in respect of which it has an option to purchase. -- The Company will consider further investment opportunities in Zimbabwe and elsewhere.

Steve Curtis, Chief Executive Officer, commented:

This has been another excellent quarter: record quarterly production of almost 19,000 ounces signifies the contribution that Central Shaft is already making. The commissioning and subsequent ramp-up of activity at Central Shaft met our best expectations and we have therefore been able to narrow our production guidance to the top end of our previous range. We remain on track to hit our 80,000 ounce target from 2022 onwards2.

Revenue in the Quarter was 32 per cent higher than in Q3 2020 due to a 42 per cent increase in the quantity of gold produced and sold offset by a 7 per cent decrease in the average realised gold price. Net cash generated by operations in the Quarter was $7.1 million, compared to $5.3 million in Q3 2020. The increase was due to higher gross profit (due to increased production and lower costs per ounce), offset by increased working capital.

The completion of Central Shaft and the resultant increase in production means that Caledonia can execute other areas of its growth strategy, such as the agreement to acquire Maligreen which was announced during the quarter, which has an estimated inferred resource of 940,000 ounces of gold in 15.6 million tonnesat a grade of 1.88 grammes per tonne3. This transaction was completed after the end of the Quarter.

In October 2021, the Company declared and paid an increased dividend of 14 cents per share. This was the seventh increase in the quarterly dividend since October 2019 and an increase of 104 per cent from 6.875 cents in October 2019. These dividend increases reflect the strong financial and operating performance of the business. The board will continue to review Caledonia's future dividend distributions as appropriate.

In October, the advance dividend loan account due from the Gwanda Community Share Ownership Trust (GCSOT), a 10 per cent shareholder in Blanket, was repaid. Henceforth GCSOT will receive its full entitlement to 10 per cent of dividends paid by Blanket. Investment in our local communities and employees (who also hold a 10 per cent shareholding in the mine through an employee trust) is key to a successful business and I am therefore delighted that the loan to the GCSOT is now fully repaid and that the community will start to receive its full dividend amount.

Caledonias immediate strategic focus following the commissioning of the Central Shaft project earlier this year is to increase production, reduce operating costs and increase the flexibility to undertake further development and exploration, thereby safeguarding and enhancing Blankets long-term future.

For further information please contact:

Caledonia Mining Corporation PlcMark Learmonth Tel: +44 1534 679 802Camilla Horsfall Tel: +44 7817 841793 WH IrelandAdrian Hadden/ Andrew De Andrade Tel: +44 20 7220 1751 Blytheweigh Financial PRTim Blythe/Megan Ray Tel: +44 207 138 3204 3PPBPatrick Chidley Tel: +1 917 991 7701Paul Durham Tel: +1 203 940 2538 Curate Public Relations (Zimbabwe)Debra Tatenda Tel: +263 77802131

Note: This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation (EU) No. 596/2014(MAR)as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

Cautionary Note Concerning Forward-Looking InformationInformation and statements contained in this news release that are not historical facts are forward-looking information within the meaning of applicable securities legislation that involve risks and uncertainties relating, but not limited, to Caledonias current expectations, intentions, plans, and beliefs. Forward-looking information can often be identified by forward-looking words such as anticipate, believe, expect, goal, plan, target, intend, estimate, could, should, may and will or the negative of these terms or similar words suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. Examples of forward-looking information in this news release include: production guidance, estimates of future/targeted production rates, and our plans and timing regarding further exploration and drilling and development. This forward-looking information is based, in part, on assumptions and factors that may change or prove to be incorrect, thus causing actual results, performance or achievements to be materially different from those expressed or implied by forward-looking information. Such factors and assumptions include, but are not limited to: failure to establish estimated resources and reserves, the grade and recovery of ore which is mined varying from estimates, success of future exploration and drilling programs, reliability of drilling, sampling and assay data, assumptions regarding the representativeness of mineralization being inaccurate, success of planned metallurgical test-work, capital and operating costs varying significantly from estimates, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and other factors.

Security holders, potential security holders and other prospective investors should be aware that these statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. Such factors include, but are not limited to: risks relating to estimates of mineral reserves and mineral resources proving to be inaccurate, fluctuations in gold price, risks and hazards associated with the business of mineral exploration, development and mining, risks relating to the credit worthiness or financial condition of suppliers, refiners and other parties with whom the Company does business; inadequate insurance, or inability to obtain insurance, to cover these risks and hazards, employee relations; relationships with and claims by local communities and indigenous populations; political risk; risks related to natural disasters, terrorism, civil unrest, public health concerns (including health epidemics or outbreaks of communicable diseases such as the coronavirus (COVID-19)); availability and increasing costs associated with mining inputs and labour; the speculative nature of mineral exploration and development, including the risks of obtaining or maintaining necessary licenses and permits, diminishing quantities or grades of mineral reserves as mining occurs; global financial condition, the actual results of current exploration activities, changes to conclusions of economic evaluations, and changes in project parameters to deal with unanticipated economic or other factors, risks of increased capital and operating costs, environmental, safety or regulatory risks, expropriation, the Companys title to properties including ownership thereof, increased competition in the mining industry for properties, equipment, qualified personnel and their costs, risks relating to the uncertainty of timing of events including targeted production rate increase and currency fluctuations. Security holders, potential security holders and other prospective investors are cautioned not to place undue reliance on forward-looking information. By its nature, forward-looking information involves numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and various future events will not occur. Caledonia undertakes no obligation to update publicly or otherwise revise any forward-looking information whether as a result of new information, future events or other such factors which affect this information, except as required by law.

This news release is not an offer of the shares of Caledonia for sale in the United States or elsewhere. This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the shares of Caledonia, in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such province, state or jurisdiction.

Condensed consolidated statements of profit or loss and other comprehensiveincome(in thousands of United States Dollars, unless indicated otherwise) Unaudited For the Three months ended Nine months ended September 30, September 30, 2021 2020 2021 2020 Revenue 33,496 25,359 89,193 71,874 Less: Royalty (1,679 ) (1,271 ) (4,471 ) (3,599 )Production costs (13,729 ) (10,399 ) (38,948 ) (32,537 )Depreciation (2,351 ) (1,143 ) (5,743 ) (3,457 )Gross profit 15,737 12,546 40,031 32,281 Other income 12 27 42 4,736 Other expenses (1,254 ) (305 ) (5,395 ) (1,827 )Administrative expenses (1,906 ) (2,539 ) (5,261 ) (5,361 )Cash-settled share-based expense (243 ) (231 ) (426 ) (1,177 )Net foreign exchange gain 413 985 341 4,694 Fair value gains (losses) on ? 27 (107 ) (121 )derivative assetsOperating profit 12,759 10,510 29,225 33,225 Finance income 4 4 11 36 Finance cost (17 ) (91 ) (365 ) (390 )Profit before tax 12,746 10,423 28,871 32,871 Tax expense (4,423 ) (4,993 ) (11,318 ) (11,410 )Profit for the period 8,323 5,430 17,553 21,461 Other comprehensive income Items that are or may be reclassified to profit or lossExchange differences on translation (330 ) (88 ) (149 ) (1,146 )of foreign operationsTotal comprehensive income for the 7,993 5,342 17,404 20,315 period Profit attributable to: Owners of the Company 6,939 4,433 14,183 17,807 Non-controlling interests 1,384 997 3,370 3,654 Profit for the period 8,323 5,430 17,553 21,461 Total comprehensive income attributable to:Owners of the Company 6,609 4,345 14,034 16,661 Non-controlling interests 1,384 997 3,370 3,654 Total comprehensive income for the 7,993 5,342 17,404 20,315 period Earnings per share Basic earnings per share ($) 0.57 0.37 1.15 1.50 Diluted earnings per share ($) 0.57 0.37 1.15 1.50

Condensed consolidated statements of financial position(Unaudited) (in thousands of United States Dollars, unless indicated otherwise)As at September 30, December 31, 2021 2020 Assets Property, plant and equipment 142,965 126,479 Exploration and evaluation asset 4,354 6,768 Deferred tax asset 102 87 Total non-current assets 147,421 133,334 Inventories 18,134 16,798 Prepayments 7,110 1,974 Trade and other receivables 11,828 4,962 Income tax receivable 27 76 Derivative financial assets ? 1,184 Cash and cash equivalents 13,213 19,092 Assets held for sale ? 500 Total current assets 50,312 44,586 Total assets 197,733 177,920 Equity and liabilities Share capital 74,696 74,696 Reserves 138,161 138,310 Retained loss (61,673 ) (71,487 )Equity attributable to shareholders 151,184 141,519 Non-controlling interests 18,649 16,524 Total equity 169,833 158,043 Liabilities Provisions 3,427 3,567 Deferred tax liabilities 8,699 4,234 Cash-settled share-based payment - long term 931 1,934 portionLease liabilities - long term portion 260 178 Total non-current liabilities 13,317 9,913 Loans and borrowings 70 408 Cash-settled share-based payment - short term 1,768 336 portionLease liabilities - short term portion 103 61 Income taxes payable 1,919 495 Trade and other payables 10,520 8,664 Overdraft 203 ? Total current liabilities 14,583 9,964 Total liabilities 27,900 19,877 Total equity and liabilities 197,733 177,920 Condensed consolidated statements of cash flows (in thousands of United States Dollars, unless indicated otherwise)Unaudited For the Three months Nine months ended ended September 30, September 30, 2021 2020 2021 2020 Cash generated from operations 9,338 7,393 26,875 23,764 Interest received ? 4 7 36 Interest paid (50 ) (78 ) (304 ) (373 )Tax paid (2,176 ) (2,048 ) (4,774 ) (4,082 )Net cash from operating 7,112 5,271 21,804 19,345 activities Cash flows used in investing activitiesAcquisition of property, plant (8,564 ) (8,007 ) (22,332 ) (15,928 )and equipmentAcquisition and expenditure on (449 ) ? (1,423 ) ? exploration and evaluation assetsProceeds on disposal of assets 500 ? 500 ? held for saleRealisation (purchase) of ? ? 1,082 (1,058 )derivative financial assetProceeds from disposal of ? ? 340 900 subsidiaryNet cash used in investing (8,513 ) (8,007 ) (21,833 ) (16,086 )activities Cash flows from financing activitiesDividends paid (2,108 ) (1,129 ) (5,614 ) (3,110 )Term loan repayments (100 ) ? (306 ) ? Payment of lease liabilities (31 ) (30 ) (96 ) (87 )Shares issued - equity raise (net ? 12,538 ? 12,538 of transaction cost)Share options exercised ? ? ? 30 Net cash (used in) from financing (2,239 ) 11,379 (6,016 ) 9,371 activities Net (decrease) / increase in cash (3,640 ) 8,643 (6,045 ) 12,630 and cash equivalentsEffect of exchange rate (19 ) 1,280 (37 ) 39 fluctuations on cash heldNet cash and cash equivalents at 16,669 11,639 19,092 8,893 the beginning of the periodNet cash and cash equivalents at 13,010 21,562 13,010 21,562 the end of the period

______________________________________1 Non-IFRS measures such as on-mine cost per ounce, all-in sustaining cost per ounce and adjusted EPS are used throughout this announcement. Refer to section 10 of the MD&A for a discussion of non-IFRS measures.2Refer to the technical report entitled Caledonia Mining Corporation Plc NI 43-101 Technical Report on the Blanket Gold Mine, Zimbabwe dated May 17, 2021 prepared by Minxcon (Pty) Ltd and filed by the Company on SEDAR(www.sedar.com) on May 26, 2021. Mr Dana Roets (B Eng (Min.), MBA, Pr.Eng., FSAIMM, AMMSA), Chief Operating Officer, is the Company's qualified person as defined by Canada's National Instrument 43-101 and has approved any scientific or technical information contained in this news release.3Refer to technical report entitled Caledonia Mining Corporation Plc NI 43-101 Mineral Resource Report on the Maligreen Gold Project, Zimbabwe by Minxcon (Pty) Ltd dated November 2, 2021 and filed on SEDAR on November 5, 2021.