Welcome to our Q1 results Caledonia. You've got Steve Curtis our CEO, Mark Learmonth our CFO, Dana Roets our COO, Maurice Mason our Vice President of Corporate Development, and then myself, Camilla Horsfall, I'm the Vice President of Investor Relations. If you have any questions, please can you either just write them in the Q&A or raise your hand and we will unmute you at the end of the presentation. So I'm now going to pass you over to Steve and Mark and they're going to talk through the results.

Thanks, Camilla. Yeah. Good afternoon, everybody. We are going to go through a presentation that's being prepared for the one results, and Camilla will share the screen as presentation is obviously available on our website. And if we go through it quickly, you've always got an opportunity to go back and have a look later. So thank you once again for joining us. Obviously, the disclaimer as usual and you'll be very familiar with that. So we've got a mixture here of sort of a summary results in financial results, I'm obviously going to ask Mark to do the financial results. You will have seen these results before because we announced production numbers as a particular time and we put out the MD&A and the Q1 results. So all of this should be familiar to you, but just to reemphasize the quality of the quarter. Production ounces 40% up on the previous quarter, on the comparable quarter, 2021, my apologies, average gold price, nothing in our control there, but we will beneficiaries of a higher gold price, which resulted in revenues 37% up. Pleasingly, gross profit 63% up. An EBITDA, 49% up on the comparable quarter. Also Blanket's is well known for all-in sustaining costs, show a reduction of 7%, management they continued to do a very good job in controlling costs even as we ramp up production. And then profit attributable to shareholders up 30%, and adjusted earnings per share, and Mark will talk a little bit more about the adjustments to arrive at that number, 62.5 since -- for the quarter, remembering we pay $0.14 a quarter in terms of dividend. And therefore, you can see that the business is very cash-generative, very profitable, and we are returning some of that too to shareholders. Moving onto the next…

Thank you, Steve. So very briefly, revenue was up 36%, was driven largely by 28% increase in gold sales. Now Steve already mentioned a 6% higher go price. Royalties’ stays fixed up 5% of revenues. Production cost got a little bit more detail in the next slide. So although the dollar value went up, there was actually a 17% reduction in online cost per ounce and depreciation in terms of substantial, because don't forget now that we've commissioned the Central Shaft, unfortunately, we got depreciated. So that's going up a bit. So hence gross profit up by 63% from $10.5 million to just under $17 million. G&A up by $1.6 million to $2.4 million, that's driven by the considerably increase in the quarterly charge for insurance. I got some more information on how the G&A is made up. higher advisory expenses in the quarter. Net foreign exchange gain was just under million dollars. That reflects a considerable step-up in the rates of devaluation of the RTGS $ against the U.S. dollar in the quarter. Then other $3 million. That includes $1.7 million of the mark-to - market costs on the various hedges, half a million dollars in exploration and evaluation, asset impairment, and that primarily relates to the decision to walk away from the Connemara North asset and about $4,000 of LTIP costs. .: The more on production, which largely comprises wages and salaries, consumables, electricity. wages and salaries increased quite substantially from $4.4 million to $5.9 million, but don't forget we had nearly a 24% increase in headcount at the mine; the mine employs about 2,000 people now as we've increased personnel levels to cater for the increased rates of production. But also don't forget that the comparable quarter, quarter 1 of 2021 was a very poor quarter. I…

Should l go straight to the video?

Yeah. Your speakers are mute.

Sorry, let's get Dana to talk about the solar farm.

The solar farm is progressing quite well. And we should see during July that we sought commissioning and connecting to the mine. And we hope to be up and running fully by the end of July within August. You will see as the video as shown progress that the areas that we were going to -- that you can see the preparation for the solar panels in the beginning and then kind of to view almost complete all the solar panels being installed and .

That Video is a few weeks old left directors that dollar has moved on quite a bit since then.

You could, you can see the photograph in the rocketed top corner almost completed the installation on the solar panels and go within the next couple of months, we will start using solar panel, which we will help us quarter lock. Just want to remind everybody that these panels will be following the fund.

Yeah, so that they tilt, so that they follow the sun, to improve their efficiency. Just a word on the dividend, we paid dividend of $0.14 quarter, we've increased the dividend quite substantially over the last few years, but now we decided to hold it up $0.14 a share, given the high level of CapEx this year. And also as we begin to position the company to, say invest in new projects, of which Molly Green is probably the front runner. So the company's transitioning a little bit away from being a one-trick pony, focused on Blanket, to actually now beginning to look at investing in new projects, and hence is a pretty productive overtime to begin to accumulate some more cash so we can bring those projects forwards. Steve, I'm finished.

Short and sweet, very nice to talk to a great results. So thank you, Mark. There are a couple of questions that have been typed into the Q&A session. I'll ask the team just to have a look at those. And if anybody else wants to ask a question, please raise your hand and then Camilla will drive the system accordingly.

Shall I do it cash increased dividends of pursue exploration. It's fair to say that over the last seven years or so, we've probably not done Blanket the justice deserves in terms of exploration expenditures. Exploration activities that historically been focused, just going deeper, deeper, and deeper. And in the last few years, we just not have the flexibility underground to do that. So we do intend to resume that deep-level exploration with the view to improve the confidence level that there's existing inferred resources that depth but also finding more material. This year, for memory, l think it's the back end of the year, we're proposing to do 15,000 meters of drilling, next year, 25,000 meters of drilling. But in addition to that, we also believe there's potential for drilling in the shallower areas of Blanket which have been historically, people are just going deeper. And we think there are scenarios there that merit further attention. In addition, we feel that those potential for exploration are immediately outside the existing mining area. So that's to the North and to the South. That also we'd like to begin to look at something called the stone formation, which is about 800 meters to a kilometer to the east of the current mining area. So there is actually quite a lot of exploration potential or are Blanket itself, which I thought could cost probably $2, $3 million a year. In addition to that we are looking at Maligreen. At the moment we're reevaluating all drill call with a view to improving the confidence level of the existing resource base, which is about 940,000 ounces at 1.9 grams a ton. We do intends to spend more money on exploration and it's going to be a balancing act between how much money we choose to retain in the business to fund those projects, and how much we choose to divert back to shareholders. When I say divert, that implies on use the money clearly, there's a use of money. So it's a balancing act. At this stage, we sort of pausing to let the fact pattern catch up with where we are. Not the only answer I can give to that question now.

Thank you, Mark. Yes. How the increase in the DNO costs that's not just too particular to us. It seems to be reflective from the beginning of the COVID in pandemic looking across at the American listed companies, but the whole market has gone nuts. And it is a huge cost. We used to pay $80,000 a year in premium, we now paying just over a million. So that is very expensive. Joseph, the workforce, as Mark mentioned, is now being paid a 100% in U.S. dollars. So they are in the best situation to fund themselves against rising costs in the rising inflation in Zimbabwe. There's nothing more we can do to make their lives easier. They already paid above the unionized market rates and we pay a 100% in U.S. dollars. So they are they are in a good space from Zimbabwe perspective, but all of us are being affected by these rising fuel costs, and we'll just have to watch this space.

But it is fair to say that the complexity of the exchange rate environment in Zimbabwe must have beyond underestimated. The service dollar earners, our workers presumably benefit from the informal exchange rate which runs at a massive, massive premium, we have a way on looking at it to the official exchange rate. So that buying power in local currency is increasing very, very quickly indeed, which is probably on the more than our weighing the effect of genuine food price inflation.

Mark, if l can just add that currently, there is no compliance from the mindset. The fact that we are paying 100% compared to previously only paying 60. They work for us really in a good position. They're not complaining, they're happy, and even with some increases we see, they're in a much better position than last year.

I think Dana should talk about Maligreen?

Yes, please.

The Maligreen, what we found is that a there is a in fact resource, and we've got enough information that are re-logging and having a look at a core that's all available, that we can upgrade that into improved resource. What's the word I'm looking for?

Improving the confidence of

Indicated resource. And we're busy with that work. It's about 80% compete, and then we will compile a new resource and report back to the market. But we are confident that we can actually upgrade the resource in refer to communicate.

I guess the idea then would be with increased confidence level, we would then proceed as quickly as we could to the feasibility study with the feed to make it making some money out of mine. The only other thing I can add to that, it may be that offsets could be able to taken by another asset which may be more attractive and therefore pushes modeling green down the pecking order. We do continue to look at other .

Thanks, Mark. I think we've answered the next question in terms of the stages and new mining projects. Our projects, new projects are brown fields. They are not mining projects at the moment. So I think Dana has also that one already. Allan, you ask if exploration reveals increased resource? Can plant increased capacity relatively easily? You're obviously talking about at Blanket. And Blanket does have some spare capacity both in hoisting and in the CIL. But we are -- we will manage that situation because in the ramp-up process, we've got to get tons up to about 2,300 tons a day. We've got milling capacity at that rate once the new mill that is being installed is in operation, and we will have to then look at the cost of any incremental plant capacity. But that is not the big money. So I'm sure if the -- if additional resources are found that our economic to get out of the ground, then the right to engineering decisions can be made. Otherwise the other projects are not contiguous to Blankets, that'll be standalone.

I forget how much should be in turn ins. It's about -- I thought it's about $80,000, wasn't it?

$1.5 million.

Okay. But it's not big, is not a large amount of money and it's relatively quick, a newer environment to get these things.

I just want to add that, if we need to add another mold, it will not be as much as -- as the more boomers concerns the -- we've got three grand molds and then we curtailed one more, and the reground mold that we added now is actually -- added quite a lot of capacity. And we will -- in future if we look at expanding, we will add our , which is the Roth , add more big . The we added was not similar the $50,000, so it won't be as much as the , and it's modular. If you want to add another mold, guess you're talking about $80,000, if you want to do that. And then if you want to add -- given to the share Altex, that's roughly we just what the currently, we're adding an extra bank and that's about $200,000. So if we need to increase, you're looking at extra ten, maybe an extra broadly .

To the poodle or that in the context, the fact's this mine is making approximately $1 million a week of operating cash flow.

Yeah. We'll ask a question about consensus about increasing consumable custom possible supply chain issues. Yes, well, we have to be cognizant of that at the moment. We're not experiencing any supply chain issues that we are experiencing certain consumable cost increases and explosives affected by the international changing pricing. So we are managing our working capital to the best of our ability. We are buying as intelligently as we can. But I think this is effective life, and we're just something that our procurement people have to watch very closely. We have the ability to shake with anybody is trying to take an opportunistic approach to these rising prices and trying to profit here. And we will keep a very close eye on that, but yes, we're seeing diesel prices going up already quite significantly. And as already spoken, we do use quite a lot of diesel without the gensets. The solar farm is very, very important to us. I just want to add work. You also see is that still has come across as probably capital projects. And then some of because of what we're testing, we see some deloads, not kind of work divisor better month or so that we see that that we all have all delayed because of the effect of the war. But we haven't seen severe increases yet, , diesel and steel and then some explosives.

On the question about supply chain, I don't know if we'll intended this, but we were some more concerned about the extent to ensure supply chain reliant on bringing goods up from South Africa through by bridge. And we were pleasantly surprised all of the virtually everything for the solar projects came through from the east, came through from the eastern border placed through Mozambique, and that actually worked very well. And also we're beginning to explore whether we can bring in projects from the west through Walvis Bay. So we're trying to create more flexibility to protect ourselves in the event at the South Africa border suffers in the same sort of disruption has happened last year when there was the insurrection in South Africa. Well, it's fair to say, most of our stuff does still come through by bridge.

Mark, maybe you want to just look at Joseph Parish's question on cash flows and new money assets.

Joseph.

Just below Wills.

With all that recent approved, these operation cash flows efficient acquisition for the sale of -- no, anything of any -- you mean Maligreen, a million ounces could possibly support a mine of say 50,000 ounces a year. That's going to cost about $60 million, $70 million. There's no way we could do that from our own internal cash resources. Even if you stop the dividend, that's not going to cover enough. When we make any investments evaluation, we take into account the -- obviously, the money that we expect to come from the project, many shares that we'd have to issue to fund the project. And at the moment, we believe if we didn't do anything, if we just ran Blanket for cash, we'd be able to distribute -- Maurice, what's the number today? It's about $2.75 a share?

No, that would be leaving nothing in the till.

Yeah, just run it. If we just ran this business for cash, we could distribute $2.75. When we evaluate new projects such as Maligreen, we need to be comfortable that taking everything into account, both the shares would need to issue to fund the capital program. We need to be confident that the amount of cash we could distribute per share, fully diluted, must be appreciably more than say $2.75. Otherwise, it's not worthwhile. It's just not worthwhile. So we do take that into account.

Mark if l can take the question these new projects we got into production, l would say that within the next two years, hopefully we will start building a new mine and then if it's two years start to build a mine then it will take about 1.5 years that you will start breaking even and start making money. So I would say, within the next 3.5 year, four years, we will start seeing a new one looking after itself. But adding to production, I would say within next few years because the contribution from new project adding to the answers.

Building on what Dana just said, that just following on for what I said, that doesn't mean we would need to raise all the money for new project by issuance of equity. Clearly, we'd expect to build to raise some debt. And let's not forget, any new project this for any new project will be that we can export the gold ourselves and therefore that means that that project will be capable of debt funding. And then also we do expect to make some contribution to the costs through our own retained cash. It's not as though we'd have to go to the equity markets for all of the required funding. And let's face it if for whatever reason the equity markets are closed, whatever reason, we just do the project more slowly, just defer it and do it as we did for Central Shaft, just do it by phasing it so we reinvest the cash that we're generating ourselves.

So thank you. Thank you to the team.

One more thing, I didn't see some comments somewhere to the management should put out some guidance about a recent announcement from Zimbabwe government relating to trying to clamp down on foreign exchange controls. So there was a -- I think Bloomberg reported a speech given by Mnangagwa. It is fair to say that Mnangagwa who makes the speeches and announces big picture policy changes. The detail invariably doesn't become clear for days if not weeks after that when speech has been then converted into practice guidance notes, issued by the Arbizet (ph) and all the relevance attached to instruments. So in respect to that particular change in policy, all we believe it means is that our existing overdraft facilities out the mine, probably being canceled, the $3 million of existing overdraft facilities are probably being canceled. Although, we know currently in overdraft right now. But we're confident but that's just a timing issue and we will get those overdrafts reinstated, not that we actually need them particularly. But just understanding that it's very difficult for us to respond quickly to those Bloomberg reports because the underlying facts take quite some time to establish.

Mark and to support that even now we are hearing that the gold sector will be exempt from those new announcements made by the president. But until we see it in the statute instrument, which is the legal standing, we just have to keep talking to the relevant authorities. But as Mark says, it only becomes fact once the strategy instrument is published and then we adjust accordingly. But we've got our finger on the pulse, but Mark says, we're in a position where we can paddle our own boat which is very comfortable.

And then again, having said that, is January -- is fair to say that the various mechanisms that we use for moving money around the place, have stabilized and the system, although it's complex, works better that it has done for many years. So we're finding it, won't say easy, but we're certainly finding it very manageable to work in this environment, and I think that reflects the fact that , just much more in the way foreign exchange available in Zimbabwe.

The last question coming from Anthony Mitchell.

Total operating costs. I think -- Dana, if you have seen that, you can --

January outcome cost operations were much cheaper than underground because first of all, your work forces looks smaller you talking about 300 people compared to the way we are employing over 2,000 now. And so that's why you can operate outcome cost mines can make money at one gram or tonnes to And I don't know if that answer your question, but normally, additionally, outcome cost mine can operate half a cost a

We've got quite a lot of information from our technical consultants regarding a sort of ballpark capital costs and ballpark operating costs for open cast and underground operations of particular type. But clearly before we make any investment decision, even if we all going to fund the thing through internal cash flow than for equity -- internal equity, we would do a feasibility study to get better for the clarity on that.

Okay. Good. The biggest of the surface operation is that you can get it up and running very, very quickly. Normally you can get it up and running and paying for itself within two years, while with the underground mines in and all, 10 years if you're lucky and then you start production, a lot less risky.

The only problem with open , everyone can see mistakes, whereas on the ground they're hidden.

Yeah.

Are you finished?

Yeah. So that has answered all the questions, and I see no more coming in. So thank you to all the participants. Thank you to the team for answering. And we look forward to talking to you again and we're very pleased to being able to present the results of a very good quarter, and giving you an indication that the same short investment is beginning to pay off. And that therefore, we're confident to reiterate our guidance between 73,000 and 80,000 ounces. But as you see, April is already indicating that the mine is performing extremely well. So thank you. Thank you for participating, and we look forward to talking to you all again.

On our last note. This is going to be sad. This is Steve's final quarter, reporting quarter as Chief Executive. He'll be stepping down at the end of June. And on behalf of his colleagues, we'd like to thank him for all the work he's done since sort of like 2014 is we've rehabilitated the company. We've made some great progress and I'm very pleased handing it over in reasonable shapes. Thank you very much and well done.

Thank you, Mark. And I know the team is going to be successful going forward. And it's very, very pleasing that the succession work we have done is paying off. The faces are going to be familiar to all of you, so you're in good hands. And I wish the team all the very, very best. Thank you all. Thank you, Mils.

Great. Thank you.