Operating Segments

The Group's operating segments have been identified based on geographic areas. The strategic business units are managed separately because they require different technology and marketing strategies. For each of the strategic business units, the Group’s CEO reviews internal management reports on at least a quarterly basis. Zimbabwe and South Africa describe the operations of the Group's reportable segments. The Zimbabwe operating segment comprise Caledonia Holdings Zimbabwe Limited and subsidiaries. The South Africa geographical segment comprise a gold mine, that is on care and maintenance, as well as sales made by Caledonia Mining South Africa Proprietary Limited to the Blanket Mine. The holding company and Greenstone Management Services Holdings Limited (UK) responsible for administrative functions within the group are taken into consideration in the strategic decision-making process of the CEO and are therefore included in the disclosure below. Corporate and other reconciling amounts do

not

represent a separate segment. Information regarding the results of each reportable segment is included below. Performance is measured based on segment profit before income tax, as included in the internal management report that are reviewed by the Group's CEO. Segment profit is used to measure performance as management believes that such information is the most relevant in evaluating the results of certain segments relative to other entities that operate within these industries.

Information about reportable segments 2018	Zimbabwe			South Africa			Inter-group elimination adjustments			Corporate and other reconciling amounts			Total

Revenue		68,399			12,554			(12,166	)		(388	)		68,399
Royalties		(3,426	)		—			—			—			(3,426	)
Production costs		(39,186	)		(11,328	)		11,199			—			(39,315	)
Depreciation		(4,366	)		(32	)		327			—			(4,071	)
Management fee *		(2,650	)		2,650			—			—			—
Other income		6,482			366			—			253			7,101
Other expenses		(296	)		—			—			(40	)		(336	)
Administrative expenses		(159	)		(2,433	)		—			(3,873	)		(6,465	)
Cash-settled share-based payment expense		(84	)		(137	)		—			(94	)		(315	)
Equity-settled share-based payment expense		—			—			—			(14	)		(14	)
Net Foreign exchange gain/(loss)		133			(327	)		—			417			223
Net finance cost		(262	)		17			—			25			(220	)
Margin call on hedge		—			—			—			(360	)		(360	)
Profit before tax		24,585			1,330			(640	)		(4,074	)		21,201
Tax expense		(7,085	)		(387	)		153			(126	)		(7,445	)
Profit for the year		17,500			943			(487	)		(4,200	)		13,756

Of the management fee

$1,871

was receivable and payable at year end (

2017:

$561

Information about reportable segments 2018	Zimbabwe			South Africa			Inter-group elimination adjustments			Corporate and other reconciling amounts			Total

Geographic segment assets:
Current (excluding intercompany)		21,505			3,489			(91	)		3,265			28,168
Non-current (excluding intercompany)		98,700			466			(1,641	)		—			97,525
Expenditure on property, plant and equipment		20,436			370			(891	)		—			19,915
Intercompany balances		—			6,926			(46,240	)		39,314			—
Assets held for sale		—			296			—			—			296

Geographic segment liabilities
Current (excluding intercompany)		(10,445	)		(1,403	)		—			(350	)		(12,198	)
Non-current (excluding intercompany)		(33,043	)		(47	)		446			(2,043	)		(34,687	)
Intercompany balances		(1,345	)		(33,032	)		46,240			(11,863	)		—
Liabilities directly associated with assets held for sale					(609	)		—			—			(609	)

Information about reportable segments 2017	Zimbabwe			South Africa			Inter-group eliminations adjustments			Corporate and other reconciling amounts			Total

Revenue		69,762			—			—			—			69,762
Inter-segmental revenue		—			15,247			(15,061	)		(186	)		—
Royalties		(3,498	)		—			—			—			(3,498	)
Production costs		(36,753	)		(14,751	)		15,324			—			(36,180	)
Depreciation		(4,019	)		(53	)		309			—			(3,763	)
Management fee		(3,960	)		3,960			—			—			—
Other income		2,358			205			—			31			2,594
Other expenses		—			(14	)		—			—			(14	)
Impairment loss on trade receivables		(181	)		—			—			—			(181	)
Administrative expenses		(40	)		(2,258	)		—			(3,613	)		(5,911	)
Cash-settled share-based payment expense		(581	)		—			—			(395	)		(976	)
Equity-settled share-based payment expense		(806	)		—			—			(29	)		(835	)
Net Foreign exchange gain		(375	)		207			—			(212	)		(380	)
Net finance cost		(69	)		10			—			28			(31	)
Profit before tax		21,838			2,553			572			(4,376	)		20,587
Tax expense		(7,587	)		(1,104	)		—			—			(8,691	)
Profit for the year		14,251			1,449			572			(4,376	)		11,896

2017	Zimbabwe			South Africa			Intergroup elimination adjustment			Corporate and other reconciling amounts			Total
Geographic segment assets:
Current		20,368			2,766			(60	)		4,839			27,913
Non-current (excluding intercompany)		82,798			381			(1,076	)		40			82,143
Additions to property, plant and equipment		21,007			(7	)		(51	)		—			20,949
Intercompany balances		—			8,021			(58,087	)		50,066			—

Geographic segment liabilities
Current		(13,969	)		(1,276	)		—			(357	)		(15,602	)
Non-current (excluding intercompany)		(23,041	)		(714	)		293			(1,781	)		(25,243	)
Intercompany balances		(2,720	)		(32,724	)		58,087			(22,643	)		—

Information about reportable segments 2016	Zimbabwe			South Africa			Inter-group eliminations adjustments			Corporate and other reconciling amounts			Total

Revenue		61,992			—			—			—			61,992
Inter-segmental revenue		—			11,873			(11,348	)		(525	)		—
Royalties		(2,923	)		—			—			—			(2,923	)
Production costs		(33,081	)		(10,185	)		11,180			—			(32,086	)
Depreciation		(3,733	)		(47	)		289			—			(3,491	)
Management fee		(3,960	)		3,960			—			—			—
Other income		1,194			16			—			120			1,330
Other expenses		(55	)		—			—			—			(55	)
Administrative expenses		(128	)		(3,119	)		674			(4,690	)		(7,263	)
Cash-settled share-based payment expense		(342	)		(106	)		—			(340	)		(788	)
Net Foreign exchange gain		2			(529	)		—			22			(505	)
Margin call on hedge		—			—			—			(435	)		(435	)
Net finance cost		(191	)		15			—			—			(176	)
Sale of Blanket Mine treasury		3,202			—			—			—			3,202
Profit before tax		21,977			1,878			795			(5,848	)		18,802
Tax expense		(6,795	)		(922	)		—			—			(7,717	)
Profit for the year		15,182			431			795			(5,323	)		11,085

Major customer

Revenues from Fidelity Printers in Zimbabwe amounted to approximately

$68,399

(

2017:

$69,762;

2016:

$61,992