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    Ian Joslin • Not specified in transcript

    Ian Joslin's questions to Caledonia Mining Corporation PLC (CMCL) leadership

    Ian Joslin's questions to Caledonia Mining Corporation PLC (CMCL) leadership • Q3 2024

    Question

    Ian Joslin inquired about the key differences between IAS and adjusted EPS, particularly concerning foreign exchange (FX) and minority interests. He also asked for clarification on how increased inventories improve operational flexibility and questioned the development timeline for the newly discovered oxides at the Motapa project.

    Answer

    CFO Chester Goodburn and Executive Mark Learmonth clarified that adjusted EPS calculations remove the non-controlling interest's share and certain non-structural FX movements, noting that minority interests bear their share of any losses. Mark Learmonth explained that the inventory buildup consists of critical spare parts and goods purchased with local currency (ZIG) to avoid devaluation, rather than holding volatile cash. Regarding Motapa, he stated that the shallow oxides would be mined if economically viable, drawing a lesson from a previous experience at Bilboes where a high stripping ratio made a similar operation unfeasible on a standalone basis.

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    Ian Joslin's questions to Caledonia Mining Corporation PLC (CMCL) leadership • Q2 2024

    Question

    Ian Joslin questioned the practice of excluding foreign exchange losses from adjusted EPS, especially if they are systematic due to currency volatility. He also asked for an opinion on whether the Zimbabwean government has genuinely changed its approach to currency management with the new ZiG.

    Answer

    CEO Mark Learmonth acknowledged the significant FX losses in recent quarters but noted they were concentrated before the introduction of the more stable ZiG currency on April 5th. He explained that adjusted EPS was initially used to strip out large, non-cash FX gains and that a full reconciliation is provided. Regarding government policy, Learmonth relayed that the Deputy Minister of Finance, the new Reserve Bank Governor, and the IMF representative have all expressed a clear determination not to repeat past mistakes with the new currency. CFO Chester Goodburn added that the timing of VAT refunds has been consistent and not manipulated around currency devaluations.

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