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Note 17 - Property, Plant and Equipment

12 Months Ended

Dec. 31, 2022

Disclosure of property, plant and equipment [text block]

17	Property, plant and equipment

Cost

Land

and Buildings

Right of

use assets

Mine development, infrastructure and other

Assets under construction and decommissioning assets

Plant

and equipment

Furniture and

fittings

Motor vehicles

Solar

Plant^&

Total

Balance at January 1, 2021

11,315

442

23,983

84,856

40,644

1,235

2,995

392

165,862

Additions*

–

528

678

24,851

3,531

134

176

1,581

31,479

Impairments^@

–

(65

)

(1,565

)

–

(1,630

)

Derecognised plant and equipment

–

(402

)

–

(402

)

Reallocations between asset classes ^#

3,120

–

49,253

(74,166

)

21,785

–

Foreign exchange movement

–

(25

)

–

(76

)

(35

)

(33

)

(171

)

Balance at December 31, 2021

14,435

543

73,914

35,476

64,319

1,342

3,169

1,940

195,138

Balance at January 1, 2022

14,435

543

73,914

35,476

64,319

1,342

3,169

1,940

195,138

Additions

–

31,711

3,049

243

147

12,198

47,348

Impairments^@

–

(8,518

)

–

(998

)

–

(9,516

)

Reallocations between asset classes

759

–

15,886

(20,734

)

4,089

–

Acquisition of Bilboes oxide assets (Tribute)

–

872

–

872

Foreign exchange movement

–

(18

)

–

(22

)

–

(16

)

Balance at December 31, 2022

15,194

525

82,154

46,453

70,485

1,563

3,314

14,138

233,826

^*	Included in additions is the change in estimate for the decommissioning asset of ($468) (2021: ($408)), refer to note 28.
^@	Included in the 2022 impairments are development asset costs of $8,518 that predominantly relates to prospective areas above 750 meters at Blanket which are not included in the LoMP. Also included in the 2022 impairments are generator cost of $791 and loader bottom decks at a cost of $101, these assets were no longer in working conditions. Included in the 2021 impairments are gensets cost of $1,001 and guide ropes cost of $310 that were no longer in working condition. The carrying amount for these impaired assets were impaired to $Nil.
^#	Included in the reallocation between asset classes is an amount of $18,509 for the Central Shaft that was reallocated from CWIP (Mine development, infrastructure and other) to Plant and equipment at the time of the commissioning of the Central Shaft.
^&	The solar plant was fully commissioned on February 2, 2023 and the sale agreement between Caledonia Mining Corporation Plc and Caledonia Mining Services (Private) Limited was concluded for the sale of the solar plant. Depreciation on the solar plant started on February 2, 2023 and the power purchase agreement, between Caledonia Mining Services (Private) Limited and Blanket Mine, became effective. In December 2022, the Caledonia board approved a proposal for Caledonia Mining Services (PvT) Ltd (which owns the solar plant) to issue loan note instruments (“bonds”) up to a value of $12,000. The decision was taken in order to optimise the capital structure of the Group and provide additional debt instruments to the Zimbabwean financial market. The bonds have an interest rate of 9.5% payable bi-annually and have a tenor of 3 years from the date of issue. The bond repayments are guaranteed by the Company and post December 31, 2022 $4.5 million was issued to Zimbabwean registered commercial entities.

Accumulated depreciation and Impairment losses

Land and Buildings

Right of

use assets

Mine development, infrastructure and other

Assets under construction and decommissioning assets

Plant and equipment

Furniture and fittings

Motor vehicles

Solar Plant

Total

Balance at January 1, 2021

6,233

213

6,443

530

22,685

849

2,430

–

39,383

Depreciation for the year

1,102

115

2,467

3,953

136

203

–

8,046

Derecognition

–

(230

)

–

(230

)

Accumulated depreciation for impairments

–

(1,133

)

–

(1,133

)

Foreign exchange movement

–

)

–

(27

)

–

(30

)

Balance at December 31, 2021

7,335

8,910

600

25,505

958

2,631

–

46,036

Balance at January 1, 2022

7,335

8,910

600

25,505

958

2,631

–

46,036

Depreciation for the year

1,015

137

3,990

4,527

163

216

–

10,141

Accumulated depreciation for impairments

–

(532

)

–

(775

)

–

(1,307

)

Foreign exchange movement

–

)

–

(21

)

–

(27

)

Balance at December 31, 2022

8,350

230

12,368

693

29,257

1,100

2,845

–

54,843

Carrying amounts

At December 31, 2021

7,100

446

65,004

34,876

38,814

384

538

1,940

149,102

At December 31, 2022

6,844

295

69,786

45,760

41,228

463

469

14,138

178,983

^*	Accumulated depreciation and depreciation under Assets under construction and decommissioning assets include depreciation on decommissioning assets.

Economic recovery

Items of property, plant and equipment are depreciated over the LoMP, which includes planned production from inferred resources. These inferred resources are included in the calculation when the economic recovery thereof is demonstrated by the achieved recovered grade relative to the mine’s pay limit for the period 2006 to 2022. The cut-off grade is 2.10 g/t (2021: 2.10 g/t) while the recovered grade has ranged from 3.38 g/t to 3.36 g/t over the period. All-in-sustaining-cost^# has remained consistently below the gold price received over this period resulting in economic recovery of the inferred resources.

^# All-in sustaining cost (“AISC”) per ounce is calculated as the on-mine cost per ounce to produce gold (which includes production costs before intercompany eliminations and exploration costs) plus royalty paid, additional costs incurred outside the mine (i.e. at offices in Harare, Johannesburg, London and Jersey), costs associated with maintaining the operating infrastructure and resource base that are required to maintain production at the current levels (sustaining capital investment), the share-based expense arising from the LTIP less silver by-product revenue and the export credit incentive.

Non-cash items excluded from acquisition of Property, plant and equipment:

	2022			2021

Net Property, plant and equipment included in Prepayments		(4,445	)		893
Net Property, plant and equipment included in Trade and other payables		(1,876	)		50
Bilboes oxide project payable (note 29)		(872	)		-
Change in estimate - adjustment capitalised in Property, plant and equipment (note 28)		468			408
Acquisition - Maligreen included in Provisions (note 28)		-			(135	)
Additions to right of use assets (note 19)		-			(528	)
Derecognition of right of use assets (note 19)		-			172
Finance cost – Capitalised to property, plant and equipment (note 15)		-			(17	)
Total non-cash items excluded from acquisition of Property, plant and equipment		(6,725	)		843