Caledonia Mining Corporation Plc Investor Day 2026

Is this microphone actually turned on? Can you hear me standing here? Oh, fantastic. Okay, let's start. It's 9:30 A.M. So good morning and welcome to this Caledonia Mining Capital Markets Day. In addition to the people in the room here today in New York, I believe we've got about 250 people joining us online from other parts of the world, primarily the U.K. and Zimbabwe. Today, we will show you how a proven Zimbabwe gold producer intends to grow from approximately 75,000 ounces of gold a year to more than 270,000 ounces of gold in 2029 while maintaining the operating and financial discipline that has defined our business. I'm Mark Learmonth, Chief Executive Officer. I've been with Caledonia since 2008 following a career in investment banking in Johannesburg and London. I became CEO in June 2022, having previously served as the company's CFO since 2014.

I draw your attention to the disclaimer, which contains important information regarding forward-looking statements, and you should read it in conjunction with today's presentations. Caledonia is built on high-quality gold projects, all located in Zimbabwe. Blanket Mine, our current cornerstone asset, which produced 76,000 ounces of gold in 2025 and made about $85 million of profit after tax. Bilboes is our immediate development project. It will produce 1.5 million ounces of gold over a life of mine of nearly 11 years, with first production expected at the end of 2028. It has a funding need of about $600 million and an NPV of over $1.5 billion at the prevailing gold price. Motapa is a large exploration project, which is immediately adjacent to Bilboes.

A few weeks ago, we announced a maiden resource of approximately half a million ounces of gold with plenty of further exploration potential over the next few years. Then finally, we have Maligreen, which is a relatively small development project with a further half million ounces of resources. This has been somewhat overtaken by events elsewhere in the portfolio and is not an immediate priority. Today is about bringing these assets to life and explaining how we expect them to translate into growth and long-term value for shareholders. I'd like to outline the program for this morning and to introduce our presenting team. Maurice Mason will give us a brief overview of Caledonia and how it has evolved into a focused Zimbabwean gold producer and how our portfolio supports the next phase of growth.

Over the last 20 years, the company has moved from a diversified collection of assets into a focused business with a clear growth trajectory. I will then do a presentation on Blanket Mine, our cornerstone asset. Blanket is an underground mine which we acquired from Kinross in 2006 for about $4 million. Over the last 20 years, we've invested over $250 million, almost all from internal cash generation, to increase production from 20,000 ounces per annum to the current level of 75,000 ounces per annum, and we've extended the mine life. Blanket shows that we can successfully design, fund, and deliver a major project in country in the form of the central shaft project. Blanket underpins our business. It generates cash, supports our dividend, and demonstrates that we understand how to operate successfully and responsibly in Zimbabwe and how to build long, strong-term relationships with government employees and local stakeholders.

Over the last 9 years, Blanket has contributed over a quarter of a billion dollars to Zimbabwean stakeholders by way of taxes, royalties, and dividends. Blanket is 120 years old this year, but still has growth opportunities, and we will spend some time outlining these. The third presentation will be given by Victor Gapare, an executive director of Caledonia and our largest single shareholder. Caledonia's major growth project is a large, high-grade, open pitable project with very low operating costs and very attractive project economics. Total production from Bilboes is expected to be about 1.5 million ounces over a mine life of nearly 11 years.

Victor will give an overview of the project, an update on the current implementation activities, and set out the project timelines and milestones. First gold pour is expected in late 2028 and full production in 2029. Bilboes will cost about $600 million. Ross Jerrard, our CFO, will set out our funding strategy and provide an update on the status of the various funding initiatives, which I have got to say are very well advanced. Our fourth presentation will cover the various exploration opportunities in the group and will be given by Craig Harvey, who is our Vice President of Technical Services. Historically, exploration has not been a major focus for the group, largely because of capital constraints. We have now identified several exciting exploration opportunities which could significantly enhance our growth trajectory. Zimbabwe is highly prospective for gold but is significantly underexplored compared to other jurisdictions.

Our strong position in Zimbabwe gives us a significant advantage in terms of identifying opportunities and turning them to account. After these four presentations, there will be a brief ESG video. We then intend to break at that point. At that point, we intend to break for coffee, and then we will have an address after coffee by His Excellency, the Ambassador to the United Nations. After which, then we will have an opportunity for Q&A. Just a single Q&A session instead of the two as advertised. In addition to the Caledonia presenting team, we have other members of Caledonia's board and management here today. We have Camilla Horsfall, who organized this event. Many thanks to her. We also have John Kelly, and until May, he was Caledonia's Chairman, and he continues to serve as a Non-Executive Director. I think that gets to the end.

The order has changed somewhat slightly because I had not expected His Excellency, the Ambassador to arrive and sit through the whole morning. Thank you very much for joining us. I think it would just truncate things and make things go rather better if we have just a single Q&A session, which pulls everything together rather than have a staggered Q&A session. I hope that meets with everybody's approval. Okay, with that, I will hand over to Maurice.

Thank you, Mark. Hello, everyone. My name is Maurice Mason. I am Caledonia's Vice President of Corporate Development and Investor Relations, and it is great to be here today to share the company strategy and prospects with investors. Just a quick corporate snapshot. We are a Zimbabwean-focused gold mining business, headquartered in Jersey in the Channel Islands. We have stock exchange listings here in New York, where the vast majority of the trading takes place. About 99% of the liquidity is traded here on the New York Stock Exchange. We also have listings in London on the AIM market and on the Victoria Falls Stock Exchange in Zimbabwe. We pay a quarterly dividend. We have been doing so consistently for approximately 14 years. Current yield is about 2.2%. We are trading at a relatively low PE, 7.4 times, particularly given the growth prospects of the business, which my colleagues will explain to you later.

As far as shareholders are concerned, there are 19.3 million shares outstanding, 15% of which are held by management and insiders. Collectively, management and insiders represent the largest single shareholder block. A few things I would draw your attention to on the register. There are three passive funds, BlackRock, VanEck, and Dimensional. BlackRock, at 5% holders in their index fund, which track the Russell 3000. That is not a mining specific fund. Dimensional at 4% are a quant-based index fund. Non-discretionary investors, they sort of have a formulaic index following approach. VanEck at 2% hold us in their index fund that tracks the GDXJ. Baker Steel and Shining Capital were previous shareholders of Bilboes and became shareholders in Caledonia Mining as part of the Bilboes transaction in 2023.

There are also a few holders that came onto the register in Q1 this year as a result of the convertible bond transaction that we did in January, specifically Nomura and Alyeska. It is worth noting also that 20% of our shareholder base are Zimbabwean. As Mark said, the portfolio has evolved quite significantly over the past decade and a half. In the early 2000s, the company was a multi-jurisdictional junior, with a collection of exploration assets that frankly did not do particularly well. After we acquired Blanket Mine, and as Mark says, we acquired that for $4 million. If you look at the money it generates today, certainly a case of investing against the tide.

After we acquired that in 2006, and we saw what a great investment that was, in terms of the potential in Zimbabwe from both a geological perspective, a human capital perspective, and from a capital allocation perspective, which frankly, assets were cheap. They were cheaper than you could buy them anywhere else in the world, like the Blanket Mine acquisition. We started to dispose of those assets and became 100% focused on Zimbabwe. Since we focused 100% on Zimbabwe, we have evolved the company from a single asset producer, producing about 43,000 ounces into a multi-asset portfolio, producing approximately 75,000 ounces today, with a very attractive growth pipeline, which as you will see later, we expect to be producing approximately 280,000 ounces in 2029. Here you can see a location of the assets. They are centered around Bulawayo. Blanket Mine approximately a two-hour drive south of Bulawayo.

Then we have a regional office in Bulawayo, and then the Bilboes-Motapa complex to the north, and then Maligreen further to the north of that. Bulawayo is about an hour's flight from Johannesburg, and Johannesburg has daily flights internationally from just about all over the world. As most of you probably have seen, we are an unusual combination of yield and growth. Most companies with our growth profile do not pay a dividend, and certainly do not have the very low PE that we have as a result of having an operating business and operating cash flow. This is a chart we are quite proud of. It is a relative performance of Caledonia versus our peers. Our formula for success is very simple. We are careful, disciplined allocators of capital. We try to limit equity dilution, particularly when the share price is low.

You do not want to give away equity when the share price is too cheap. We have been paying a dividend for the past 14 years, and the effects of that are quite helpful over the long term in terms of the compounding value of that dividend. This chart shows exactly that. It shows the cumulative compound performance of Caledonia, including dividends relative to both or to three things, the gold price, the GDX, and the GDXJ, since 1 January 2016. As you can see, we have significantly outperformed any reasonable benchmark for a gold investor. Caledonia has delivered approximately a tenfold return for our investors over the past decade. When one considers the growth profile that we have to show you today, we are quite confident that we still have a very bright future, and we expect this trend to continue.