EX-99.4 6 t12504exv99w4.txt EXHIBIT 99.4 2002 FIRST QUARTER REPORT [CALEDONIA MINING CORPORATION LOGO] CALEDONIA Mining Corporation ================================================================================ UNIT #9, 2145 DUNWIN DRIVE, MISSISSAUGA, ONTARIO CANADA, L5L 4L9 TEL: (905) 607-7543 FAX: (905) 607-9806 WORLD WIDE WEB: HTTP://WWW.CALEDONIAMINING.COM PRESIDENT'S REPORT RESULTS OF OPERATIONS SOUTH AFRICA Gold production was resumed at Barbrook on a limited basis in February 2002. Mining from two higher grade areas outside the normal Taylor's mining zone was intended to allow the revised milling circuit to be evaluated on a pilot plant scale and to provide revenue to fund a study into the feasibility of returning the Barbrook mine to commercial gold production at an early date. While the grades recovered are very attractive, the total tonnage mined has been below expectations. However, the mill circuit will provide valuable information which will be incorporated into the feasibility study. Results of this study are expected in the second quarter. In February, Barbrook Mines Limited, a fully owned subsidiary of Caledonia, negotiated a loan for one million South African Rand (Cdn $ 139,860) on the basis of a note convertible into shares of Caledonia. The note can be converted at any time during the period ending on February 14, 2003. The borrowed funds are being used to fund the limited scale high grade mining, the revised milling circuit, and for the mine evaluation study at Barbook. The Eersteling Mine continued on a care & maintenance basis during the quarter. Drilling at the Goedgevonden diamond prospect near Stilfontein in the Klerksdorp district of the North West Province commenced in March. A seven hole drill program is underway which will provide a mini-bulk sample. The sample will be processed by the Klipspringer Diamond Mine dense media separation ("DMS") plant located near Potgietersrus in South Africa. The DMS plant has a Fluid SORTEX diamond circuit for the recovery of diamonds. The conclusions derived from the exploration results will announced during the second quarter. CANADA During March, a $1.56 million exploration program for the 2002 season was approved and funded for the Kikerk Lake property by the other joint-venture partners. Caledonia's current non-participating interest is 35%. One of the program objectives is to collect up to ten tonnes of mini-bulk sample from the Potentilla kimberlite by core drilling and to define the shape and size of the kimberlite body. Potentilla was discovered in September 2001 and returned 230 micro-diamonds and 22 macro-diamonds from a sample of drill core. In addition to the work at Potentilla, Ashton Mining of Canada Inc., the operator, has reported that a detailed airborne magnetic and electromagnetic survey has been completed over an area that includes one unexplained indicator mineral train and Potentilla. Ground geophysical surveys will follow over anomalies identified from the airborne magnetic surveys. Any high priority targets will be drilled before winter breakup. ZAMBIA Preparatory work is being undertaken for the 2002 exploration and drilling program at Mulonga Plain which will commence in June. A drilling contractor is being selected by Motapa Diamonds Inc. which expects that the 15 to 20 hole drill program should start in September. Geophysical and geochemical surveys are also planned over the Mulonga Plain and Kashiji Plain licences. Caledonia holds a 40% non-participating interest in the property. At Kalimba, BHP-Billiton have given notice of their intent to withdraw from the joint-venture agreement. Caledonia intends to review all of the work carried out by BHP-Billiton at Kalimba in conjuction with the previous work carried out by Caledonia. Following this review, the Corporation will seek another JV partner for the Kalimba licence group and the Konkola West licence area. LIQUIDITY On April 2nd 2002 the Corporation announced its intention to raise up to Cdn $3 million through a Private Placement. This transaction was successfully concluded and resulted in the issuance of 20,689,655 shares and 12,058,992 warrants. Each warrant allows the holder to purchase one share of Caledonia for $0.195 until April 12th 2004. The funds raised will be used to reduce debt, fund possible bulk sampling and testing of the Goedgevonden diamond pipe, fund the evaluation and potential resumption of operations at the Barbrook mine, fund the initial prospecting on the Rooipoort, Pruissen and Vier-en-Twintig properties in Northern Transvaal, and for general corporate purposes. Because the funding was not completed until after March 31, 2002, it is not reflected in the quarterly financial statements prepared as of that date. (Signed) S.E. Hayden Chairman, President and Chief Executive Officer May 8, 2002 CALEDONIA MINING CORPORATION CONSOLIDATED BALANCE SHEETS (IN THOUSANDS OF CANADIAN DOLLARS)
MARCH 31, DECEMBER 31, 2002 2001 --------- ------------ (Unaudited) ASSETS Current Cash and short term deposits $ 125 $ 90 Accounts receivable 93 89 Prepaid expenses 5 5 --------- --------- 223 184 CAPITAL ASSETS 7,424 7,424 MINERAL PROPERTIES 17,299 17,365 --------- --------- $ 24,946 $ 24,973 --------- --------- LIABILITIES AND SHAREHOLDERS' EQUITY Current Accounts payable $ 1,741 $ 1,604 Loans payable 1,342 1,097 --------- --------- 3,083 2,701 PROVISION FOR SITE RESTORATION 1,026 1,026 NON-CONTROLLING INTEREST 787 787 --------- --------- 4,896 4,514 --------- --------- SHAREHOLDERS' EQUITY Share capital 143,986 143,986 Deficit (123,936) (123,527) --------- --------- 20,050 20,459 --------- --------- $ 24,946 $ 24,973 ========= =========
On behalf of the Board: _____________________________ Director (Signed) F. C. Harvey _____________________________ Director (Signed) J. Johnstone CALEDONIA MINING CORPORATION CONSOLIDATED STATEMENTS OF DEFICIT (IN THOUSANDS OF CANADIAN DOLLARS)
FOR THE THREE MONTHS ENDED MARCH 31 2002 2001 ----------------------------------- ---- ---- (UNAUDITED) DEFICIT, BEGINNING OF PERIOD ($123,527) ($122,332) NET (LOSS) FOR THE PERIOD (409) (226) --------- --------- DEFICIT, END OF PERIOD ($123,936) ($122,558) ========= =========
CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS OF CANADIAN DOLLARS EXCEPT PER SHARE AMOUNTS)
FOR THE THREE MONTHS ENDED MARCH 31 2002 2001 ----------------------------------- ---- ---- (Unaudited) REVENUE AND OPERATING COSTS Revenue from sales $ 9 $ - -------- -------- Operating costs 67 - GROSS (LOSS) (58) - -------- -------- COSTS AND EXPENSES General and administrative 322 232 Interest 24 20 Other expense (income) 5 (26) -------- -------- 351 226 -------- -------- NET (LOSS) FOR THE PERIOD ($ 409) ($ 226) ======== ======== (LOSS) PER SHARE Basic ($ 0.002) ($ 0.001) ======== ========
CALEDONIA MINING CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (IN THOUSANDS OF CANADIAN DOLLARS)
FOR THE THREE MONTHS ENDED MARCH 31 2002 2001 ----------------------------------- ---- ---- (Unaudited) CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES Net (loss) for the period ($ 409) ($ 226) Change in non-cash working capital balances 133 155 ------ ------ (276) (71) ------ ------ INVESTING ACTIVITIES Change in mineral properties 66 - ------ ------ FINANCING ACTIVITIES Loan payable 245 - ------ ------ INCREASE (DECREASE) IN CASH FOR THE PERIOD 35 (71) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 90 75 ------ ------ CASH AND CASH EQUIVALENTS, END OF PERIOD $ 125 $ 4 ====== ======
Financial Disclosure Note The unaudited interim consolidated financial statements have been presented in accordance with Canadian generally accepted accounting principles for interim reporting. In the opinion of management all adjustments required for a fair presentation are included in these statements in accordance with the accounting policies of the Corporation. The interim consolidated financial statements should be read in conjunction with the year end 2001 audited financial statements for the detailed note disclosure which is not materially different to these interim financial statements. CORPORATE DIRECTORY BOARD OF DIRECTORS S. E. Hayden J. Johnstone F. C. Harvey W. I. L. Forrest C. R. Jonsson OFFICERS S. E. Hayden Chairman of the Board, President and Chief Executive Officer F. C. Harvey Technical Director J. Johnstone Vice-President Operations and Chief Operating Officer S. W. Poad Vice-President Finance and Administration J. Smith Vice-President Exploration HEAD OFFICE CANADA - HEAD OFFICE Caledonia Mining Corporation Unit #9 2145 Dunwin Drive Mississauga, Ontario L5L 4L9 Canada Tel: (905) 607-7543 Fax: (905) 607-9806 SHARES LISTED The Toronto Stock Exchange Symbol "CAL' NASDAQ OTC BB Symbol "CALVF" CAPITALIZATION (March 31, 2002) Authorized: Unlimited number of common shares Issued Common Shares: 165,202,115 Warrants: 17,000,000 Options: 2,525,800 SOLICITORS Borden Ladner Gervais LLP Suite 4100, Scotia Plaza 40 King Street West Toronto, Ontario M5H 3Y4 Canada Tupper, Jonsson & Yeadon 1710-1177 West Hastings Street Vancouver, British Columbia V6E 2L3 Canada AUDITORS BDO Dunwoody LLP Chartered Accountants Suite 3200, 200 Bay Street Royal Bank Plaza, South Tower Toronto, Ontario M5J 2J8 Canada REGISTRAR & TRANSFER AGENT Equity Transfer Services Inc. Suite 420 120 Adelaide Street West Toronto, Ontario M5H 4C3 Canada Tel: (416) 361-0152 Fax: (416) 361-0470 BANK Canadian Imperial Bank Of Commerce 6266 Dixie Road Mississauga, Ontario L5T 1A7 Canada INTERNET Web Site: http://www.caledoniamining.com