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Note 37 - Operating Segments

12 Months Ended

Dec. 31, 2022

Disclosure of entity's operating segments [text block]

37	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, as well as Motapa Mining Company UK Limited and its subsidiary Arraskar Investments (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. The accounting policies of the reportable segments are the same as the Group’s accounting policies.

Information about reportable segments

For the twelve months ended December 31, 2022

Zimbabwe

South Africa

Inter-group eliminations adjustments

Corporate and other reconciling amounts

Total

Revenue

142,082

–

142,082

Inter-segmental revenue

–

19,885

(19,885

)

–

Royalty

(7,124

)

–

(7,124

)

Production costs

(62,701

)

(18,883

)

18,586

–

(62,998

)

Depreciation

(10,735

)

(153

)

789

(42

)

(10,141

)

Other income

–

Other expenses

(11,289

)

(66

)

–

(427

)

(11,782

)

Administrative expenses

(172

)

(3,047

)

–

(8,722

)

(11,941

)

Management fee

(3,454

)

3,454

–

Cash-settled share-based expense

–

853

(1,462

)

(609

)

Equity-settled share-based expense

–

(484

)

(484

)

Net foreign exchange gain (loss)

4,415

(119

)

(291

)

406

4,411

Fair value loss on derivative liabilities

–

(1,198

)

(1,198

)

Net finance cost

(861

)

–

229

(640

)

Dividends (paid) received

(16,992

)

–

16,992

–

Profit before tax

33,217

1,075

5,292

39,636

Tax expense

(15,785

)

(252

)

117

(850

)

(16,770

)

Profit after tax

17,432

823

169

4,442

22,866

As at December 31, 2022

Zimbabwe

South Africa

Inter-group eliminations adjustments

Corporate and other reconciling amounts

Total

Geographic segment assets:

Current (excluding intercompany)

33,130

1,448

(83

)

3,932

38,427

Non-Current (excluding intercompany)

181,982

822

(5,446

)

19,406

196,764

Expenditure on property, plant and equipment (note 17)

39,635

(881

)

(1,355

)

10,821

48,220

Expenditure on evaluation and exploration assets (note 18)

9,394

–

9,398

Intercompany balances

33,468

12,202

(107,227

)

61,557

–

Geographic segment liabilities:

Current (excluding intercompany)

(17,451

)

(1,901

)

–

(13,089

)

(32,441

)

Non-current (excluding intercompany)

(8,197

)

(101

)

116

(1,109

)

(9,291

)

Intercompany balances

(12,725

)

(34,753

)

107,227

(59,749

)

–

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		47			(1	)		–			–			46
Other expenses		(3,241	)		–			–			(3,895	)		(7,136	)
Administrative expenses		(128	)		(2,867	)		(2	)		(6,094	)		(9,091	)
Management fee		(2,908	)		2,908			–			–			–
Cash-settled share-based expense		–			29			691			(1,197	)		(477	)
Net foreign exchange gain (loss)		1,182			(295	)		(92	)		389			1,184
Fair value loss on derivative instruments		–			(105	)		–			(135	)		(240	)
Net finance cost		(1,614	)		(2	)		–			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 17)		30,575			1,923			(1,019	)		–			31,479
Expenditure on evaluation and exploration assets (note 18)		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	)		–

Major customer

Revenues from Fidelity amounted to $142,082 (2021: $121,329, 2020: $100,002) for the twelve months ended December 31, 2022.