Caledonia Mining : First Quarter 2021 Financial Statements

Caledonia Mining Corporation Plc

MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL INFORMATION

To the Shareholders of Caledonia Mining Corporation Plc:

Management has prepared the information and representations in this interim report. The unaudited condensed consolidated interim financial statements of Caledonia Mining Corporation Plc and its subsidiaries (the "Group") have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") and, where appropriate, these statements include some amounts that are based on best estimates and judgment. Management has determined such amounts on a reasonable basis in order to ensure that the unaudited condensed consolidated interim financial statements are presented fairly, in all material respects.

The accompanying Management Discussion and Analysis ("MD&A") also includes information regarding the impact of current transactions, sources of liquidity, capital resources, operating trends, risks and uncertainties. Actual results in the future may differ materially from our present assessment of this information because future events and circumstances may not occur as expected.

The Group maintains adequate systems of internal accounting and administrative controls, within reasonable cost. Such systems are designed to provide reasonable assurance that relevant and reliable financial information are produced.

Management is responsible for establishing and maintaining adequate internal controls over financial reporting ("ICOFR"). Any system of ICOFR, no matter how well designed, has inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.

At March 31, 2021 management evaluated the effectiveness of the Group's ICOFR and concluded that such ICOFR was effective based on the criteria set forth in the Internal Control Integrated Framework (2013) issued by the Committee of Sponsoring Organisations of the Treadway Commission.

The Board of Directors, through its Audit Committee, is responsible for ensuring that management fulfills its responsibilities for financial reporting and internal control. The Audit Committee is composed of three independent directors. This Committee meets periodically with management, the internal and external auditors to review accounting, auditing, internal control and financial reporting matters.

These condensed consolidated interim financial statements have not been audited by the Group's independent auditor.

The unaudited condensed consolidated interim financial statements for the period ended March 31, 2021 were approved by the Board of Directors and signed on its behalf on May 13, 2021.

(Signed) S. R. Curtis	(Signed) J.M. Learmonth
Chief Executive Officer	Chief Financial Officer

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Caledonia Mining Corporation Plc

Condensed consolidated statements of profit or loss and other comprehensive income

For the three months ended March 31,
(in thousands of United States Dollars, unless indicated otherwise)
Unaudited	Note	2021	2020
Revenue		25,720	23,602
Less: Royalty		(1,289)	(1,182)
Production costs	6	(12,857)	(10,687)
Depreciation	13	(1,193)	(1,173)
Gross profit		10,381	10,560
Other income	7	23	1,918
Other expenses	8	(258)	(208)
Administrative expenses	9	(1,610)	(1,547)
Cash-settledshare-based expense	10.1	(152)	(184)
Net foreign exchange gain	11	273	2,223
Fair value losses on derivative assets	12	(114)	(35)
Operating profit		8,543	12,727
Finance income		3	14
Finance cost		(121)	(152)
Profit before tax		8,425	12,589
Tax expense		(3,002)	(2,910)
Profit for the period		5,423	9,679
Other comprehensive income
Items that are or may be reclassified to profit or loss
Exchange differences on translation of foreign operations		(202)	(1,351)
Total comprehensive income for the period		5,221	8,328
Profit attributable to:
Owners of the Company		4,550	8,240
Non-controlling interests		873	1,439
Profit for the period		5,423	9,679
Total comprehensive income attributable to:
Owners of the Company		4,348	8,240
Non-controlling interests		873	1,439
Total comprehensive income for the period		5,221	9,679
Earnings per share
Basic earnings per share ($)		0.37	0.71
Diluted earnings per share ($)		0.37	0.71

The accompanying notes on pages 6 to 22 are an integral part of these condensed consolidated interim financial statements.

On behalf of the Board: "S.R. Curtis"- Chief Executive Officer and "J.M. Learmonth"- Chief Financial Officer.

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Caledonia Mining Corporation Plc

Condensed consolidated statements of financial position

(in thousands of United States Dollars, unless indicated otherwise)
Unaudited		March 31 December 31
As at	Note	2021	2020
Assets
Property, plant and equipment	13	131,671	126,479
Exploration and evaluation asset	14	6,958	6,768
Deferred tax asset		96	87
Total non-current assets		138,725	133,334
Inventories	15	14,363	16,798
Prepayments		3,988	1,974
Trade and other receivables	16	11,247	4,962
Income tax receivable		63	76
Derivative financial assets	12	1,045	1,184
Cash and cash equivalents		13,027	19,092
Assets held for sale		500	500
Total current assets		44,233	44,586
Total assets		182,958	177,920
Equity and liabilities
Share capital		74,696	74,696
Reserves		138,108	138,310
Retained loss		(68,274)	(71,487)
Equity attributable to shareholders		144,530	141,519
Non-controlling interests		17,042	16,524
Total equity		161,572	158,043
Liabilities
Provisions		3,334	3,567
Deferred tax liabilities		6,179	4,234
Cash-settledshare-based payment - long term portion	10.1	650	1,934
Lease liabilities - long term portion		169	178
Total non-current liabilities		10,332	9,913
Loans and borrowings - short term portion		286	408
Cash-settledshare-based payment - short term portion	10.1	1,575	336
Lease liabilities - short term portion		42	61
Income taxes payable		861	495
Trade and other payables	17	8,290	8,664
Total current liabilities		11,054	9,964
Total liabilities		21,386	19,877
Total equity and liabilities		182,958	177,920

The accompanying notes on pages 6 to 22 are an integral part of these condensed consolidated interim financial statements.

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Caledonia Mining Corporation Plc

Condensed consolidated statements of changes in equity

(in thousands of United States Dollars, unless indicated otherwise)

Unaudited					Equity-
			Foreign		settled			Non-
			currency		share-based			controlling
		Share	translation	Contributed	payment	Retained		interests	Total
	Note	capital	reserve	surplus	reserve	loss	Total	(NCI)	equity
Balance December 31, 2019		56,065	(8,621)	132,591	16,760	(88,380)	108,415	16,302	124,717
Transactions with owners:
Dividends declared		-	-	-	-	(812)	(812)	(157)	(969)
Shares issued:
- Share-based payment	10.1	216	-	-	-	-	216	-	216
- Blanket shares purchased from Fremiro		5,847	-	-	(2,247)	-	3,600	(3,600)	-
Total comprehensive income:
Profit for the period		-	-	-	-	8,240	8,240	1,439	9,679
Other comprehensive income for the period		-	(1,351)	-	-	-	(1,351)	-	(1,351)
Balance at March 31, 2020		62,128	(9,972)	132,591	14,513	(80,952)	118,308	13,984	132,292
Balance December 31, 2020		74,696	(8,794)	132,591	14,513	(71,487)	141,519	16,524	158,043
Transactions with owners:
Dividends declared		-	-	-	-	(1,337)	(1,337)	(355)	(1,692)
Total comprehensive income:
Profit for the period		-	-	-	-	4,550	4,550	873	5,423
Other comprehensive income for the period		-	(202)	-	-	-	(202)	-	(202)
Balance at March 31, 2021		74,696	(8,996)	132,591	14,513	(68,274)	144,530	17,042	161,572

The accompanying notes on pages 6 to 22 are an integral part of these condensed consolidated interim financial statements.

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Caledonia Mining Corporation Plc

Condensed consolidated statements of cash flows

For the three months ended March 31,
(in thousands of United States Dollars, unless indicated otherwise)
Unaudited	Note	2021	2020
Cash generated from operations	18	2,550	10,933
Interest received		3	14
Interest paid		(126)	(154)
Tax paid		(464)	(719)
Net cash from operating activities		1,963	10,074
Cash flows used in investing activities
Acquisition of property, plant and equipment		(6,344)	(4,693)
Acquisition of exploration and evaluation assets		(190)	-
Proceeds from disposal of subsidiary		340	900
Net cash used in investing activities		(6,194)	(3,793)
Cash flows from financing activities
Dividends paid		(1,692)	(969)
Term loan repayments		(104)	-
Payment of lease liabilities		(32)	-
Net cash used in financing activities		(1,828)	(969)
Net (decrease)/ increase in cash and cash equivalents		(6,059)	5,312
Effect of exchange rate fluctuations on cash held		(6)	(380)
Net cash and cash equivalents at the beginning of the period		19,092	8,893
Net cash and cash equivalents at the end of the period		13,027	13,825

The accompanying notes on pages 6 to 22 are an integral part of these condensed consolidated interim financial statements.

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