Hello and welcome to the Caledonia Mining Full Year Results. My name is Shawn and I’ll be your coordinator for today’s event. Please note, that this call is being recorded. For the duration of the duration of the call your lines will be on listen-only. [Operator instructions] I will now hand you over to your host, Steve Curtis, CEO, to begin today’s conference. Thank you.

Thank you very much, indeed and thank you to all those who are listening, for joining this call and welcome to our 2018 results presentation. I’m going to be talking to the presentation that is loaded up on our website and it’s quite a comprehensive documents. And I’m going to assume that the fact you have taken the time to join the call, you may well have looked at that. So I’m not going to go in absolute page by page turning, but I’d like to focus on what I think of the critical areas and should be of interest to you, both the positive and the negative and unfortunately there are some negatives. But I will keep it focus on the areas that I trust will help you understand the business and the business environment. I'm joined on the call by the management team. That includes Mark Learmonth, CFO; Dana Roets, the COO; and Maurice Mason who looks after our Investor Relations. So welcome once again and let’s proceed into the call. Obviously, I'd like to just draw your attention to the disclaimer, which is an important document and that I will take again as read. So I'm now flicking over to what is page four, which is titled Strategy. And I’d just like to highlight some of the key areas that we have dealt with through the year, and will be top of mind for us as we go forward. In the announcement, we highlighted again that our focus in terms of the Central Shaft project is for us to achieve a production run rate and a production target of 80,000 ounces. And we've indicated that we will hit an annual rate of 80,000 ounces in the year 2022, with initially guided that this would be 2021. And…

Thank you, Steve. Let’s start with the profit and loss account on page 22. The production costs increased from about $36 million to $39 million, that's a 9% increase. And that looks quite alarming. It's worth noting that the adverse effect of lower grade was a significant contributor to that. And typically when you get lower grade you also get a lower recovery. So if you were to look at those production costs on a cost per ton basis, the increase isn’t 9%, it’s about 4%. And the increase on a cost per ton basis is largely due to things like higher -- some of the higher -- some of the consumable costs were slightly higher. So in particular, cyanide [going to explode] [ph]. And the cost of running the enlarged fleet of underground trackless equipment have also increased, because we're running more machines. Sort of a bizarre effect of the monetary changes in Zimbabwe was that in October, when they introduced the modification of the banking system between RTGS and FCA effectively that [indiscernible] the banking system didn't know how to cope with those, and so stopped working for a period of two weeks or so. And there's nothing to do that -- wasn’t to do with the availability of money, it's just that you couldn't process transactions. That meant that we were unable to place an order as we’ve planned to do for an underground -- a dump truck to operate underground. So we failed to place an order before the Christmas shut down in Johannesburg. And as a result of that, it meant that the LHD machines which are only designed to go very, very short distances, we're having to go much longer distances and is a very long way of explaining the cost of the inefficiency…

Thanks, Mark. Yes -- and it's important that we look at the sort of brackets of time zones that are critical to Blanket at this point in time. The next 18 to 24 months when we finish and commission the shaft and we ramp up production. Crucial, because it will be the combination of a long exercise, it will prove that we have been successful in this very significant capital project. But most importantly, the capital expenditure will start to decline and the ramp up of free cash flow will move in a very positive direction. So, that's an exciting period for us to move into. Thereafter, sort of two years to four years on from here, as again declining CapEx, Blanket will be equipped really for the balance of the life of mine that we’ve got in terms of resources by this capital project, apart from the decline that we need to do at a point in time to establish the fourth level that's going to be very manageable expenditure. And again, it will be done out of the free cash flow, which will be growing to a significant amount. That will give us the opportunity, as I said earlier to review the dividend policy, and maybe other corporate activities like share buybacks depending on what we believe is appropriate, and the -- the share price at that point in time that we deploy shareholder funds that are becoming more and more available in the right direction for the right reasons. And thereafter, looking sort of far over the fence, looking at the next stage of opportunities, projects do take some time to bring through the germination and the gestation stage. And we're looking now we would hopefully be able to push a button at some time. But over the next five years, hopefully there will be new opportunities to augment and add to the very significant gold production that we're going to have coming out of Blanket. And we can proudly talk to shareholders about that as we find something to put on the table. So I've got nothing more to say on the actual presentation. And I'd like to open up the floor to questions. And the team is here and please if anybody is interested, work through our call coordinator and let's see if we can answer any questions you have. So thank you for listening.

[Operator instructions] The first question is from the line of Peter Townsend. Please go ahead with your question.

Good afternoon gentlemen and thanks for the call. Just one question on the mining method where you've moved to long haul stoping and narrower inches, is presumably there's additional development that needs to be done. And does that have a meaningful impact on your costs?

Peter, thanks for the question. I’ll ask Dana, who is the miner, to answer that question for you. So Dana can you jump in?

Hi Steve, can you hear me?

Yes, perfect. Thank you.

Right. Peter, it's only very limited and yes, if we reduce the veins or the [indiscernible] from 15 meters to 10 meters we’ll have to do more development. But it's really- it's very limited. It's not -- what we've done is we've got a wide open stopes at [indiscernible] ourselves we were doing longer stoping. And it’s only the narrow stopes that we used to have at Blanket and as well as [indiscernible] that we now started to implement longer stoping for safety reasons. And what we see is when it goes between about 3 meters and 1.5 meter, then we reduce the sub levels, and currently we only have two stopes that we’re doing that. So it’s very limited.

Thank you. Then a follow-up the additional training that you’re doing has that seen your grades revert to where they were previously or you continuing to experience dilution?

We managed this year so far especially from March onwards, we started to get the grade that we [indiscernible]. So, we’re sort of optimistic that we can maintain it. But signs are there that we managed to get [hand along the dilution][ph].

Okay, thank you. And one more if I may, when the central shaft comes on stream I assume your operation becomes a lot more efficient, clearly you can add more tonnages, et cetera but your per ton cost I'm assuming there's a meaningful impact. Now some of that is in your forecast. But it looks to me like this should be transformational given your current mining layout and the inefficiencies in using old infrastructure windows, et cetera. Is it a meaningful decline in cost that you expect once kind of 2021-22 when you should be operating close to steady state?

None of those synergies or improvements are built into our costs going forward. For example, it takes [indiscernible] from putting the guys down on the one end of the cycle of over 3 kilometers traveling to the other side takes about two and half hours. And that's going through [three] [ph] shaft, [the front] [ph] shaft, vertical shafts. Where now we'll put the guys down one shot right to the middle of the area. And will at least halve the traveling time to working places. The new one will travel at 50 meters per second so it will take us a couple of minutes to get people down. And the same with the equipment and material, where now they taken down by hand the smaller material items and equipment and then we had four shaft we put on our bigger equipment, and very limited because it's only two compartment. So [wasting][ph] rock and once you want to put in the equipment you're going to stop wasting. Where the new shaft is a four compartment being main material and rock. So none of the benefit has been built into our costs going forward. And I think it will have a huge effect. I don't have a feeling for that, but we can easily add one and half hours to two hours to our on [phase] [ph] time. And what that putting down equipment and material and having [delays] [ph] will be much improved.

Thank you very much. I’ll allow others to ask questions and come back later. Thank you.

We currently have no further questions. [Operator Instructions] There are no further questions. So I will now hand back to Steve Curtis, CEO to conclude today's conference.

Thank you. Hello. All right. Yeah, thank you very much. And, Peter, thank you for the questions. We appreciate people taking the time to have a listen to the presentation. We will continue to feed information into the market as we progress through this exciting stage. You could expect to hear from us around about the middle of the year when the shaft is completed and when we’ve started commissioning. So once again, I’d just like to thank you for participating in this call and being interested in Caledonia Mining. So from the team, good afternoon, good evening to all of you wherever you may be. Thank you once again.

Thank you for joining today's call. You may now disconnect your lines.