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Note 38 - Operating Segments

12 Months Ended

Dec. 31, 2021

Disclosure of entity's operating segments [text block]

38	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 comprises Caledonia Holdings Zimbabwe (Private) Limited and subsidiaries Blanket Mine (1983) (Private) Limited and Caledonia Mining Services (Private) Limited. The South African geographical segment comprises a gold mine that is on care and maintenance (and now sold), as well as sales made by Caledonia Mining South Africa Proprietary Limited to the Blanket Mine. The holding company (Caledonia Mining Corporation Plc) and Greenstone Management Services Holdings Limited (a UK company) 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. 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

For the twelve months ended December 31, 2021

Zimbabwe

South Africa

Inter-group eliminations adjustments

Corporate and other reconciling amounts

Total

Revenue

121,329

–

121,329

Inter-segmental revenue

–

21,662

(21,662

)

–

Royalty

(6,083

)

–

(6,083

)

Production costs

(53,117

)

(19,902

)

19,893

–

(53,126

)

Depreciation

(8,348

)

(120

)

466

(44

)

(8,046

)

Other income

)

–

Other expenses

(3,241

)

–

(3,895

)

(7,136

)

Administrative expenses

(128

)

(2,867

)

(6,094

)

(9,091

)

Management fee

(2,908

)

2,908

–

Cash-settled share-based expense

–

691

(1,197

)

(477

)

Net foreign exchange gain (loss)

1,182

(295

)

(92

)

389

1,184

Fair value loss on derivative assets and liabilities

–

(105

)

–

(135

)

(240

)

Net finance cost

(1,614

)

–

1,255

(361

)

Profit before tax

47,119

1,307

(706

)

(9,721

)

37,999

Tax expense

(14,356

)

(652

)

151

–

(14,857

)

Profit after tax

32,763

655

(555

)

(9,721

)

23,142

As at December 31, 2021

Zimbabwe

South Africa

Inter-group eliminations adjustments

Corporate and other reconciling amounts

Total

Geographic segment assets:

Current (excluding intercompany)

34,440

2,457

(162

)

16,198

52,933

Non-Current (excluding intercompany)

159,612

2,315

(4,880

)

897

157,944

Expenditure on property, plant and equipment (note 18)

30,575

1,713

(1,019

)

–

31,269

Expenditure on evaluation and exploration assets (note 19)

5,554

–

163

5,717

Intercompany balances

34,512

9,131

(91,697

)

48,054

–

Geographic segment liabilities:

Current (excluding intercompany)

(10,042

)

(1,606

)

–

(6,040

)

(17,688

)

Non-current (excluding intercompany)

(11,535

)

(313

)

322

(1,107

)

(12,633

)

Intercompany balances

(12,414

)

(35,467

)

91,697

(43,816

)

–

For the twelve months ended December 31, 2020	Zimbabwe			South Africa			Inter-group eliminations adjustments			Corporate and other reconciling amounts			Total

Revenue		100,002			–			–			–			100,002
Inter-segmental revenue		–			23,214			(23,214	)		–			–
Royalty		(5,007	)		–			–			–			(5,007	)
Production costs		(44,032	)		(20,318	)		20,639			–			(43,711	)
Depreciation		(4,920	)		(91	)		424			(41	)		(4,628	)
Other income		4,751			14			–			–			4,765
Other expenses		(5,180	)		(114	)		–			(21	)		(5,315	)
Administrative expenses		(156	)		(2,237	)		10			(5,614	)		(7,997	)
Management fee		(2,492	)		2,492			–			–			–
Cash-settled share-based expense		–			(114	)		634			(1,933	)		(1,413	)
Net foreign exchange gain (loss)		4,618			132			(272	)		(173	)		4,305
Fair value loss on derivative assets and liabilities		–			(164	)		–			(102	)		(266	)
Net finance cost		(352	)		47			–			–			(305	)
Dividends (paid) received		(2,198	)		(1,355	)		–			3,553			–
Profit before tax		45,034			1,506			(1,779	)		(4,331	)		40,430
Tax expense		(14,446	)		(854	)		380			(253	)		(15,173	)
Profit after tax		30,588			652			(1,399	)		(4,584	)		25,257

As at December 31, 2020	Zimbabwe			South Africa			Inter-group eliminations adjustments			Corporate and other reconciling amounts			Total

*Geographic segment assets:*
Current (excluding intercompany)		27,070			5,320			(194	)		12,390			44,586
Non-Current (excluding intercompany)		133,568			716			(4,237	)		3,287			133,334
Expenditure on property, plant and equipment (note 18)		26,391			151			(1,887	)		123			24,778
Expenditure on evaluation and exploration assets (note 19)		98			–			–			2,961			3,059
Intercompany balances		17,482			6,752			(69,144	)		44,910			–

*Geographic segment liabilities:*
Current (excluding intercompany)		(6,831	)		(1,797	)		–			(1,336	)		(9,964	)
Non-current (excluding intercompany)		(8,065	)		–			264			(2,112	)		(9,913	)
Intercompany balances		–			(34,020	)		69,144			(35,124	)		–

Major customer

Revenues from Fidelity amounted to $121,329 (2020: $100,002) for the twelve months ended December 31, 2021. Refer to note 7.