Caledonia Mining 4th Quarter and 2004 Annual Results.TORONTO -- Caledonia Mining Corporation ("Caledonia") (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :CAL)(NASDAQ-OTCBB:CALVF) is pleased to announce its key financial and operating results for the fourth quarter and the year ended 31 December 2004. The financial results are reported in thousands of Canadian dollars Noun 1. Canadian dollar - the basic unit of money in Canada; "the Canadian dollar has the image of loon on one side of the coin" loonie dollar - the basic monetary unit in many countries; equal to 100 cents except where otherwise stated.
Financials (in C$ 000's)
Q4'04 Q4'03 FY'04 FY'03
(unaudited) (audited)
Revenue and operating costs
Revenue from sales 469 334 841 646
Operating costs 1,686 1,405 6,451 3,630
Gross profit (loss) (1,217) (1,071) (5,610) (2,984)
Cost and Expenses 3,352 10,777 4,382 11,550
Cash 6,470 4,179 6,470 4,179
Net (loss) for the period (4,569) (11,810) (9,979) (14,496)
Net (loss) per share (basic &
fully diluted) (0.015) (0.052) (0.034) (0.062)
For the year ended December 31, 2004, Caledonia recorded a net loss, after write downs, of $10 million ($0.034 per share) compared to a net loss of $14.5 million ($0.062 per share) in 2003. The loss in 2004 included a write down of mineral properties of $1.1 million and losses from operations of $5.6 million. The loss from operating activities increased from $3.0 million in 2003, reflecting a higher level of activity associated with ongoing activities to refurbish re·fur·bish tr.v. re·fur·bished, re·fur·bish·ing, re·fur·bish·es To make clean, bright, or fresh again; renovate. re·fur the Barbrook Gold Mine. In 2004 general and administrative expense includes a charge of $0.2 million for stock option grant expense as compared to $0.1 million in 2003. As of December 31, 2004 Caledonia's cash position is healthy, with working capital of $6.4 million (2003: $3.8 million). Caledonia remains completely debt-free. During the year, $14.3 million was raised from private placements, exercise of warrants and options (2003: $9.5 million). The majority of these funds will be used to finance the improvements in the processing of gold ore at Barbrook and exploration activity on the Company's most prospective projects. Reviewing the company's performance, Stefan Hayden, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , said "2004 has been another challenging yet exciting year for Caledonia as we work towards bringing the Barbrook Gold Mine into profitable gold production and consolidate work on exploration projects, in particular, the prospective Nama Cobalt/Copper Deposit in Zambia and the Rooipoort Platinum Project. We have worked hard to consolidate Caledonia's financial situation during 2004 and I am pleased to report the Company is completely debt-free, with a solid cash position of $6.4 million at the year end. While the macro-economic environment in South Africa South Africa, Afrikaans Suid-Afrika, officially Republic of South Africa, republic (2005 est. pop. 44,344,000), 471,442 sq mi (1,221,037 sq km), S Africa. where we operate the Barbrook Gold Mine continues to be challenging, we believe that the overall outlook for commodity prices is good. The continuing strength of the rand is impacting negatively in the South African mining industry, however, we remain confident that despite this challenge we will return Barbrook to profit in the near future." Barbrook Gold Mine, South Africa The complex refractory refractory Material that is not deformed or damaged by high temperatures, used to make crucibles, incinerators, insulation, and furnaces, particularly metallurgical furnaces. sulphide sulphide: see sulfide. ore body at Barbrook continued to test the metallurgical met·al·lur·gy n. 1. The science that deals with procedures used in extracting metals from their ores, purifying and alloying metals, and creating useful objects from metals. 2. plant during most of 2004, necessitating further extensive modifications to increase gold recoveries. Following these changes, there has been a significant improvement in the operating efficiency in the resin-in-leach ("RIL RIL Recombinant Inbred Lines RIL Reduced Impact Logging RIL Radio Interface Layer RIL Reliance Industries Limited, India RIL Research Information Letter RIL Repairable Items List RIL Runway Identification Lights ") section during the first quarter of 2005. Recently, gold recoveries of over 80% have been achieved and the Company expects further improvements during the 2005 financial year. Gold production for the year increased 43% to 1,693 ounces (2003: 1,187 ounces). Due to the longer than expected time for improvements in gold recoveries, mill throughput The speed with which a computer processes data. It is a combination of internal processing speed, peripheral speeds (I/O) and the efficiency of the operating system and other system software all working together. 1. will only rise to 10,000 tonnes later on in the year. The Biox(R) feasibility study The analysis of a problem to determine if it can be solved effectively. The operational (will it work?), economical (costs and benefits) and technical (can it be built?) aspects are part of the study. Results of the study determine whether the solution should be implemented. is underway and the Company is awaiting the results of further testing of the virtually carbon free concentrate now being produced, and its impact on the Biox(R) plant design and cost. In addition, Caledonia is evaluating ultra-fine milling and dense media separation technologies to improve feed quality and recoveries. A decision on whether to implement the Biox(R) plant and/or ultra-fine milling and/or dense media separation is also anticipated in the second quarter of 2005. Barbrook underground development continued at the French Bob's, Taylors and Daylight/Victory zones to delineate the mine's reserves and resources. Nama Project, Zambia Our exciting cobalt Cobalt, town, Canada Cobalt (kō`bôlt), town (1991 pop. 1,470), E Ont., Canada, NE of Sudbury, near Lake Timiskaming. Once a center for cobalt and silver mining, the area is now economically depressed. project Nama, located in northern Zambia, has made steady progress during 2004 with encouraging results from the mini-bulk sample. The sample was tested, during the fourth quarter, at MINTEK's laboratory in South Africa and confirmed that a suitable cobalt concentrate can be extracted. In 2005 a larger tonnage TONNAGE, mar. law. The capacity of a ship or vessel. 2. The act of congress of March 2, 1799, s. 64, 1 Story's L. U. S. 630, directs that to ascertain the tonnage of any ship or vessel, the surveyor, &c. sample will be excavated and processed through a pilot plant, to be built on site, to produce a suitable cobalt concentrate for testing through a smelter or hydrometallurgical hy·dro·met·al·lur·gy n. The treatment of metal or the separation of metal from ores and ore concentrates by liquid processes, such as leaching, extraction, and precipitation. plant. If this test is successful and satisfactory economic terms are obtained, Caledonia will seek to negotiate a long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. supply contract with a large cobalt user or users. Caledonia will also investigate potential joint venture partners to assist with the development of this project. Rooipoort Platinum Exploration Project, South Africa Exploration work in the fourth quarter continued at the Rooipoort Platinum Project with the commencement of an initial drilling programme intended to define an indicated PGM PGM Program PGM Pragmatic General Multicast PGM Phosphoglucomutase PgM Program Manager PGM Platinum Group Metal PGM Pagemaker (software) PGM Portable Gray Map PGM Precision Guided Munition resource. This follows the completion of an earlier stratigraphic stra·tig·ra·phy n. The study of rock strata, especially the distribution, deposition, and age of sedimentary rocks. strat diamond drill program. Flotation flotation or froth flotation Most widely used process for extracting many minerals from their ores. The method separates and concentrates ores by altering their surfaces so that they are either repelled or attracted by water. testwork on mineralized min·er·al·ize v. min·er·al·ized, min·er·al·iz·ing, min·er·al·iz·es v.tr. 1. To convert to a mineral substance; petrify. 2. To transform a metal into a mineral by oxidation. 3. composite samples from 5 lithological units was also conducted during the last quarter to verify (1) To prove the correctness of data. (2) In data entry operations, to compare the keystrokes of a second operator with the data entered by the first operator to ensure that the data were typed in accurately. See validate. the flotation amenability a·me·na·ble adj. 1. Responsive to advice, authority, or suggestion; willing. 2. Responsible to higher authority; accountable: amenable to the law. See Synonyms at responsible. 3. of the ore. The tests included milling and basic flotation to produce a flotation concentrate. The results indicated that from each of the 5 mineralized zones, a re-cleaner flotation concentrate of low mass recovery can be produced that contains medium to high recovery of the platinum, palladium palladium, chemical element palladium [Gr. Pallas, goddess of wisdom], metallic chemical element; symbol Pd; at. no. 46; at. wt. 106.42; m.p. 1,554°C;; b.p. 2,970°C;; sp. gr. 12.02 at 20°C;; valence +2, +3, or +4. , gold, copper and nickel nickel, metallic chemical element; symbol Ni; at. no. 28; at. wt. 58.69; m.p. about 1,453°C;; b.p. about 2,732°C;; sp. gr. 8.902 at 25°C;; valence 0, +1, +2, +3, or +4. . This initial test work indicates that a simple metallurgical process route could process a flotation concentrate from a high-tonnage lower-grade feed ore from an open-pit ore source. In 2005 the work program will focus on drilling the northern and extreme southern property boundaries Ask a Lawyer Question Country: United States of America State: Alabama Land property House built in 1960's. Her house was built her house was built years late. My and myself own our house. , where recent exploration results show the mineralization Mineralization The process by which the body uses minerals to build bone structure. Mentioned in: Rickets mineralization, n the bioprecipitation of an inorganic substance. is closer to surface. Results will be released during the second quarter of 2005. Grasvally, Adjacent to Rooipoort Project, South Africa During 2004, Caledonia completed the purchase of an additional 342 hectares of mineral and prospecting rights on the Grasvally farm prospect adjacent to the Rooipoort property to the south. We consider Grasvally to be highly prospective as the mineralization in this area appears to be near surface with a shallow dip. Caledonia's application for the necessary Prospecting Permit from the Department of Minerals and Energy, which was filed on April 23, 2004, was refused on March 11, 2005 on the sole grounds of not having a shareholders agreement in place with regard to a black economic empowerment Black Economic Empowerment (BEE) is a program launched by the South African government to redress the inequalities of Apartheid by giving previously disadvantaged groups (black Africans, Coloureds and Indians) economic opportunities previously not available to them. partner. Caledonia believes that this refusal has no legal basis and continues to actively pursue this permit by all available means. Mulonga Plain Joint Venture Diamond Project, Zambia At the Mulonga Plain Diamond Project in Zambia, our joint venture partners have continued to fully fund the exploration programs. Based on the results of a 5,000 line km Falcon(R) airborne airborne /air·borne/ (ar´born) suspended in, transported by, or spread by air. airborne, adj carried through the air. In health care settings, viruses or bacteria may become airborne, e.g. gravity and magnetic survey, flown over the identified kimberlite kimberlite: see diamond. kimberlite or blue ground Dark, heavy, often fragmented igneous rock that may contain diamonds in the rock matrix. mineral clusters located in the most eastern portion of the Mulonga licence area, a drilling budget for 2005 of US$520,000 has been allocated to follow up the identification of the targets derived from previous work and the 71 gravity anomalies A gravity anomaly is the difference between the observed gravity and a value predicted from a model. Geodesy and geophysics In geodesy and geophysics, the usual model is the surface of a global spheroid (ellipsoid of Hayford or WGS84) by rather simple formulae (2 functions of identified by the preliminary interpretation of the Falcon(R) data. At Kashiji Plain, a number of samples were collected and are currently undergoing laboratory work. Budget allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as and planning for 2005 has been deferred until these analyses are complete. Caledonia's interest in Mulonga Plain remains 40%. Kikerk Lake Diamond Project, Canada Caledonia's joint venture partners have continued their obligation to fund the exploration programs. During 2004, all the heavy mineral follow-up samples, collected in 2003, were processed. A total of 361 heavy mineral samples were collected during July and August 2004. The sampling program had two objectives: the first was to better define known indicator mineral trains or confirm isolated indicator anomalies; the second was to increase the sample density across the property in those areas of the property where sampling was considered inadequate to confidently assess mineral potential. Results from this sampling program are expected by the end of the second quarter 2005. Caledonia's 17.5% share of this program is funded by Ashton Mining of Canada. Ashton holds a 52.5% interest, having incurred in excess of $750,000 in exploration expenditures on the property. This interest can be increased to 59.5% if Ashton funds Caledonia's share of the costs through to a completed feasibility study. The remaining 30% interest is held by Stornoway Diamond Corporation. Eersteling Gold Mine During 2004, Caledonia redeemed re·deem tr.v. re·deemed, re·deem·ing, re·deems 1. To recover ownership of by paying a specified sum. 2. To pay off (a promissory note, for example). 3. minority shareholdings in Eersteling, thus making Eersteling a 100% owned subsidiary of Caledonia. A full geological ge·ol·o·gy n. pl. ge·ol·o·gies 1. The scientific study of the origin, history, and structure of the earth. 2. The structure of a specific region of the earth's crust. 3. A book on geology. review of the Eersteling property, including the mine plans and other technical data, was commenced in October 2004. The resources at Eersteling were evaluated and a development program prioritized. Other prospective areas, which should be investigated as potential ore sources, were identified and a surface exploration program has commenced to test some of these areas. This included a high resolution aeromagnetic and radiometric survey, which was completed in January 2005. In the soil geochemical program, 500 soil samples in a 3,500 sample program were collected at Eersteling, with the results currently pending. Potential target zones will be identified and it is planned to drill these during 2005. Corporate During 2004, Caledonia continued its programme to enlarge TO ENLARGE. To extend; as, to enlarge a rule to plead, is to extend the time during which a defendant may plead. To enlarge, means also to set at liberty; as, the prisoner was enlarged on giving bail. and enhance the skills of the Board and meet corporate governance Corporate Governance The relationship between all the stakeholders in a company. This includes the shareholders, directors, and management of a company, as defined by the corporate charter, bylaws, formal policy, and rule of law. objectives. The Company obtained shareholder approval to increase the Caledonia Board of Directors to six members and appointed Roland Fasel, a Swiss based businessman, to the Caledonia Board of directors. Mike Tombs was appointed Vice President Finance and Chief Financial Officer and is based in Johannesburg, South Africa. Steven Poad has assumed the position of Controller. In February 2005, Rupert Pardoe was appointed Chairman, with immediate effect. Caledonia plans during the second quarter 2005 to list the company's shares on the Alternative Investment Market in London, England in conjunction with a financing. The Board believes this listing will introduce Caledonia to London's institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. , offer Caledonia greater market exposure, and further broaden the shareholder base, ultimately benefiting all shareholders. By March 31, 2005 Caledonia's Audited 2004 Financial Statement and Management Discussion and Analysis will be filed with SEDAR SEDAR System for Electronic Document Analysis and Retrieval SEDAR Southeast Data, Assessment, and Review , and published on our website www.caledoniamining.com, and will be posted to registered shareholders. Further information regarding Caledonia's exploration activities and operations along with its latest financials may be found at www.caledoniamining.com.
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PERFORMANCE HIGHLIGHTS
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2004 2003(2) 2002(2) 2001(2) 2000(2)
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Financial - C$ 000's
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Revenue from Sales 841 646 27 124 6,623
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Gross Profit (Loss) (5,610) (2,984) (118) (143) 284
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Expenses (General and
Administration, Interest 2,959 1,841 1,585 1,130 2,143
and Amortization)
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Net Income (Loss)
- before Write-Downs (8,917) (4,737) (1,856) (1,096) 7,451
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Net Income (Loss)
- after Write-Downs (9,979)(14,496) (4,446) (1,096) 7,451
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Cash 6,470 4,179 1,864 90 75
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Current Assets 7,481 4,573 2,094 184 200
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Assets 23,666 19,530 24,969 25,183 25,273
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Current Liabilities 1,062 790 1,336 2,701 2,556
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Long Term Liabilities 423 1,089 1,073 1,499 1,598
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Working Capital (Deficiency) 6,419 3,783 758 (2,517) (2,356)
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Shareholders' Equity 22,181 17,651 22,560 20,983 21,119
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Total Capital Expenditures
including Mineral 3,813 2,279 613 23 120
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Expenditures on Mineral
Properties 2,298 2,042 624 23 120
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Financing Raised 14,314 9,511 5,174 1,078 979
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Share Information
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Market Capitalization
($ Thousands) 39,145 105,955 86,836 9,086 10,374
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Shares Outstanding
(Thousands) 301,112 252,274 211,795 165,202 148,202
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Warrants & Options (Thousands) 52,342 27,348 28,055 19,566 7,566
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Earnings (Loss) per Share (0.03) (0.06) (0.02) (0.01) 0.08
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TSE Share Price High 0.465 0.610 0.44 0.09 0.35
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TSE Share Price Low 0.12 0.215 0.060 0.04 0.05
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TSE Share Volume (Thousands) 56,934 99,233 81,234 22,310 22,939
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NASDAQ Share Price High (US$) 0.37 0.39 0.281 0.06 0.18
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NASDAQ Share Price Low (US$) 0.10 0.16 0.040 0.02 0.03
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NASDAQ Share Volume
(Thousands) 210,251 440,811 271,404 74,714 61,919
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Operating Results (1)
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Gold Production (Ounces) 1,693 1,187 52 114 14,558
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Silver Production (Ounces) 66 42 4 - 122,665
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Average Cost per Ounce Gold
(US $) Sold 2,310 3,129 - - 240
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Average Revenue per Ounce
Gold (US $) Sold 415 402 - - 285
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Year End Gold Resource
(Thousand Ounces) 2,459 2,478 2,489 2,930 2,930
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(1) Filon Sur to June 30 for year 2000 only.
(2) Restated for the adoption of the Asset Retirement Obligations
change in accounting policy.
Caledonia Mining Corporation (TSX:CAL) (OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. :CALVF) |
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