Caledonia Mining Plc plans to raise US$13,7 million

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By Alois Vinga

CALEDONIA Mining Plc has tabled plans to raise US$13,7 million through placing of new common shares in a bid to generate working capital and strengthen the miner’s balance sheet.

The AIM listed company said the capital will be raised through placing of new common shares at a significant discount when compared to the shares current market worth.

“Pursuant to a placing of new common shares of no-par value at a price per Placing Share of £11.15 which is approximately US$13,74.

“The Placing Price is equivalent to a discount of 13.2% to the closing price of the Company’s Common Shares on AIM, the market operated by London Stock Exchange plc (“LSE”) on 23 March 2023,” the company said.

The share value is in line with the latest practicable date prior to this announcement, and a discount of 3% to the volume weighted average price on AIM for the 30 trading days to 23 March 2023.

The Placing is being conducted in the UK and South Africa through an accelerated book building process, which is being managed by Cenkos Securities plc and Liberum Capital Limited in the UK, and The Standard Bank of South Africa Limited together with the “Joint Bookrunners”.

In addition to the Placing, IH Securities (Private) Limited  is undertaking on behalf of the Company a placing in Zimbabwe of  depositary receipts to raise approximately £2.4 million (approximately US$3 million at, or at not less than, the Placing Price and, together with the Placing.

“The Zimbabwe Placing will also open with immediate effect following release of this announcement and is expected to remain open until 12.00 p.m. on 31 March 2023. The Company will make a further announcement confirming the result of the Zimbabwe Placing as soon as practicable after it has closed. Members of the public are not entitled to participate in the Fundraise,” the company said.

The top miner also realised gross revenue of US$142 million for 2022 in its full-year results on Friday, up from the $121m it recorded in 2021.

The firm’s adjusted earnings per share for the year totalled 219.9 US cents, a slight decrease from the 225.9 cents reported for 2021.

Caledonia Mining said net cash from operating activities totalled $42.6m for the year, up from $30.9m 12 months earlier.

However, its net cash and cash equivalents decreased significantly to $1.5m at year-end on 31 December, from $16.3 million year-on-year.

The board paid a dividend of 56 cents per share for the year, up from its 50 cent-per-share distribution for 2021.