Case Study
Caledonia Mining Corp

Company Overview

Caledonia Mining Corporation Plc is a listed gold production, exploration, and development company focused on Zimbabwe. In 2024, the company was evaluating a new mine development and needed to understand how this venture would reshape its financial profile and funding structure. 

 

The Challenge

With promising feasibility studies in hand, Caledonia needed to evaluate:

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• The financial impact of the new mine on the wider enterprise.

• The optimal funding structure from a tax, debt, and equity perspective.

• The effect on shareholder value, particularly managing dilution risk in the event of an equity raise.

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As Maurice Mason, Vice President, Corporate Development, explained:

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“Our business had grown to a stage where there were too many moving parts for us to evaluate it easily ourselves. We knew what we wanted to do, but it required both advanced modelling skills and advanced accounting and finance skills combined.”

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Our Approach

TriFidus was engaged to design a corporate investment appraisal model that integrated feasibility study inputs with internal forecasts. Working in close partnership with Caledonia’s senior executives, we:

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• Built a detailed three-statement financial model for each entity within the business.

• Modelled cash flows across the new and existing mine, holding structures, and shareholder distributions.

• Enabled multi-scenario planning alongside a retained base case.

• Identified improvements in planning capabilities, delivering solutions beyond the original scope.

• Provided financial leadership support to increase governance and decision-making confidence.

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As Mason noted:

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“We built the company’s financial statements into the model to forecast what our balance sheet would look like based on various scenarios.”

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The Outcome

Caledonia gained a strategic corporate model that serves as a “single source of truth” across the organisation. Benefits included:

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• Enterprise-wide visibility of P&L, balance sheet, and cash flow impacts.

• Stronger governance processes as a listed company.

• Enhanced ability to test scenarios and evaluate funding strategies.

• Greater confidence in board and shareholder discussions.

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“The model TriFidus designed and built gives us the flexibility to easily run and evaluate multiple scenarios.”

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“Working with TriFidus has improved our governance as a listed company. It’s been a very collaborative process, and I would enthusiastically recommend TriFidus.”

Maurice Mason, Vice President, Corporate Development

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The Impact

Caledonia can now make strategic financing and operational decisions from an informed position, with confidence that outcomes are backed by robust data and transparent assumptions.