Education
About Us
Working with TipRanks
Follow Us
Caledonia Mining Corporation Plc (CMCL)
:CMCL
Top Page
Caledonia Mining
(NYSE MKT:CMCL)
78Outperform
Positive Factors
Earnings
CMCL reported 1Q25 revenue and EBITDA above forecasts, leading to an increased price target and maintained Buy rating.
Financial Stability
CMCL plans to use free cash flow to reduce debt and maintain the dividend, reflecting financial stability.
Gold Prices
Gold prices continue to rise, which benefits Caledonia's revenue and production forecasts.
Negative Factors
Cost Increases
Caledonia expects a 2025 all-in sustaining cost (AISC) per ounce of $1,690–$1,790, up 12.7%–19.3% from the midpoint of 2024 AISC per ounce guidance.
Production Guidance
Management's 2024 gold production guidance is down 5.7%, implying a temporary decline.
Tax Liabilities
Financial results were restated due to a recalculating of deferred tax liabilities, identifying a 'material weakness'.
Caledonia Mining (CMCL) vs. S&P 500 (SPY)
Market Cap
$295.21M
Dividend Yield3.66%
Average Volume (3M)124.72K
Price to Earnings (P/E)11.5
Beta (1Y)0.67
Revenue Growth29.36%
EPS Growth707.68%
CountryUS
Employees2,147
SectorBasic Materials
Sector Strength60
IndustryGold
Share Statistics
EPS (TTM)0.45
Shares Outstanding19,294,785
10 Day Avg. Volume138,016
30 Day Avg. Volume124,718
Financial Highlights & Ratios
PEG Ratio-0.99
Price to Book (P/B)0.80
Price to Sales (P/S)0.00
P/FCF Ratio51.57
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$21.00Price Target Upside37.25% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Caledonia Mining Business Overview & Revenue Model
Company DescriptionCaledonia Mining Corporation Plc (CMCL) is a mining, exploration, and development company primarily engaged in the acquisition, exploration, and development of gold properties. The company's principal asset is the Blanket Mine in Zimbabwe, an established gold producer with a strong production history. Caledonia Mining focuses on increasing production and extending the life of its mining operations while seeking new opportunities for expansion within the gold mining sector.
How the Company Makes MoneyCaledonia Mining makes money primarily through the extraction and sale of gold from its Blanket Mine in Zimbabwe. The company generates revenue by producing gold, which is then sold in the global markets at prevailing market prices. The primary revenue stream is from the sale of gold bullion, which is typically sold to refineries or gold trading companies. Significant factors contributing to its earnings include the efficiency of its mining operations, gold production volume, and market gold prices. Caledonia Mining also engages in strategic investments to optimize and expand its mining operations, aiming to increase productivity and reduce operational costs, thereby enhancing profitability.
Caledonia Mining Financial Statement Overview
Summary
Caledonia Mining's financial performance is characterized by strong revenue growth and operational efficiency, with a robust balance sheet marked by low debt levels. However, challenges remain in net profit conversion and cash retention, which slightly dampen the overall financial performance score.Income Statement
Caledonia Mining's TTM (Trailing-Twelve-Months) revenue showed growth over the previous period, with a revenue growth rate of approximately 21%. Gross Profit Margin stands at 38.1%, indicating decent profitability in operations. However, the Net Profit Margin is relatively low at 5.8%, reflecting challenges in converting revenue into profit. The EBIT Margin and EBITDA Margin are strong at 24% and 30% respectively, showing solid operational efficiency.65
Positive
Balance Sheet
The balance sheet remains robust, with a Debt-to-Equity Ratio of 0.06, indicating low financial leverage and a conservative capital structure. Return on Equity (ROE) is 3.9%, which is modest but shows room for improvement. The Equity Ratio is high at 72.8%, demonstrating a strong equity base relative to total assets, providing financial stability.70
Positive
Cash Flow
Caledonia Mining has shown improvement in cash flow generation, with a positive Free Cash Flow of $3.9 million in the TTM, compared to a negative free cash flow in the previous year. The Operating Cash Flow to Net Income Ratio is strong, indicating good cash conversion from earnings. However, Free Cash Flow to Net Income Ratio is low, suggesting potential challenges in cash retention.60
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 167.77M | 138.68M | 142.08M | 121.33M | 100.00M | 75.83M | Gross Profit |
| 63.94M | 41.37M | 61.82M | 54.07M | 46.66M | 31.14M | EBIT |
| 40.28M | 15.18M | 40.28M | 38.36M | 40.73M | 26.57M | EBITDA |
| 50.37M | 29.70M | 50.43M | 46.42M | 45.42M | 65.47M | Net Income Common Stockholders |
| 9.66M | -4.20M | 17.90M | 18.41M | 20.78M | 42.02M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 11.19M | 6.71M | 4.74M | 17.15M | 19.09M | 9.38M | Total Assets |
| 125.69M | 328.30M | 235.19M | 210.88M | 177.92M | 143.55M | Total Debt |
| 5.96M | 25.06M | 12.66M | 1.35M | 647.00K | 3.31M | Net Debt |
| -5.23M | 18.35M | 7.92M | -15.80M | -18.45M | -6.07M | Total Liabilities |
| 46.88M | 64.11M | 41.73M | 30.32M | 19.88M | 18.84M | Stockholders Equity |
| 70.46M | 239.72M | 171.05M | 161.30M | 141.52M | 108.42M |
| Cash Flow | Free Cash Flow | ||||
| 3.90M | -15.62M | -1.48M | -6.93M | 3.12M | -1.96M | Operating Cash Flow |
| 31.59M | 14.77M | 42.62M | 30.90M | 30.96M | 18.06M | Investing Cash Flow |
| -28.13M | -31.16M | -44.57M | -35.92M | -28.00M | -19.02M | Financing Cash Flow |
| -8.78M | 3.93M | -12.51M | 2.37M | 7.33M | -1.23M |
Caledonia Mining Technical Analysis
Positive
15.30
Price Trends
12.51
Positive
11.10
Positive
11.89
Positive
Market Momentum
0.65
Negative
67.17
Neutral
91.60
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CMCL, the sentiment is Positive. The current price of 15.3 is above the 20-day moving average (MA) of 13.75, above the 50-day MA of 12.51, and above the 200-day MA of 11.89, indicating a bullish trend. The MACD of 0.65 indicates Negative momentum. The RSI at 67.17 is Neutral, neither overbought nor oversold. The STOCH value of 91.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CMCL.
Caledonia Mining Risk Analysis
Caledonia Mining disclosed 37 risk factors in its most recent earnings report. Caledonia Mining reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Caledonia Mining Peers Comparison
Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $295.21M | 11.54 | 11.16% | 3.66% | 29.36% | 707.68% | |
61 Neutral | $177.07M | 20.43 | 26.95% | ― | 67.42% | 137.01% | |
54 Neutral | $182.22M | 11.43 | -3.29% | 5.77% | -33.92% | -58.53% | |
52 Neutral | $255.71M | ― | -0.60% | ― | 186.18% | -125.58% | |
50 Neutral | $1.98B | -1.06 | -21.29% | 3.61% | 1.95% | -30.61% | |
40 Underperform | $203.68M | ― | -4.74% | ― | ― | -173.39% |
* Basic Materials Sector Average
Performance Comparison
CMCL
Caledonia Mining
15.30
4.80
45.71%
FF
Futurefuel
4.16
-0.40
-8.77%
IDR
Idaho Strategic Resources
12.60
2.19
21.04%
GROY
Gold Royalty
1.50
-0.57
-27.54%
IONR
ioneer Limited Sponsored ADR
3.52
-2.42
-40.74%
Caledonia Mining Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q1-2025)
| % Change Since: 9.21%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance and operational achievements such as record gross profit, increased gold production and sales, and a strengthened cash position. However, these positives were tempered by increased production costs and higher administrative expenses. The company's strategic focus on cost reduction and operational efficiency improvements suggests a proactive approach to addressing these challenges.Q1-2025 Updates
Positive Updates
Record Gross Profit
Caledonia Mining reported a gross profit of $26.9 million for Q1 2025, marking a 95% increase and setting a new quarterly record.
Increased Gold Production and Sales
The company produced and sold 19,000 ounces of gold, up from 17,500 ounces in the comparable quarter, reflecting a 9% increase.
Significant Revenue Growth
Gold revenue for the quarter increased by 46% to $56 million, driven by a higher realized gold price of just under $2,900 per ounce, up 42%.
Improved Cash Position
The company improved its net cash position to a negative $4.6 million from a negative $14.2 million in the previous period. Following the Solar Plant sale, the pro forma net cash position improved to $18.6 million.
Operational Efficiency and Safety Improvements
Operational changes led to record production and improved safety metrics with accidents dropping from five in January to one in March.
Negative Updates
Increased Production Costs
Production costs increased by 19% to $22.6 million due to higher labor, power, and consumables costs.
Higher Administrative and Capital Expenditures
Administrative costs and capital expenditures were higher, with some costs attributed to one-off expenses like HR reshuffles and gold hedge settlements.
Challenges with All-In Sustaining Costs
All-in sustaining costs were impacted by higher admin and capital expenditures, some of which were one-off costs totaling $2.2 million.
Company Guidance
During the Caledonia Mining Q1 Results Presentation, Mark Learmonth, CEO, highlighted the company's strong financial performance in the first fiscal quarter of 2025. The company achieved record gross profit, supported by a high average realized gold price of just under $2,900 per ounce. Gold production and sales were robust at 19,000 ounces, a 9% increase from the 17,500 ounces in the comparable quarter. Financially, gold revenue rose to $56 million, marking a 46% increase, and gross profit soared by 95% to $26.9 million. The quarter's net cash from operating activities more than doubled to $13.3 million, improving the net cash position to negative $4.6 million from a negative $14.2 million in the previous period. These results were bolstered by a successful sale of a Solar Plant and are part of a broader strategy focusing on disciplined growth, including optimizing production costs and exploring new opportunities for growth in Zimbabwe.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.