Okay. On the call today with me, Mark Learmonth, Caledonia's Chief Executive, there is Victor Gapare, who is, as you all know, one of the vendors of the Bilboes asset; he's an Executive Director. We've got Chester Goodburn, CFO, based in Johannesburg. Dana Roets, also, Chief Operating Officer, based in Johannesburg. Maurice Mason, Vice President, Corporate Development; and Camilla, VP, Group Communications; they're both based in the UK. Should we get going? So without beating about the bush, it was another very challenging quarter. As I'm going to go through these, my comments will be focused on Q2 compared to Q2 previous years. We do, for reference, show six-month numbers there, but I prefer to focus just on the quarter. So production was 18,500 ounces. That includes a very disappointing 1,000 ounces from Bilboes, so it's about 17,400 from Blanket. I'll ask Dana and Victor, respectively, to discuss the operational issues facing Blanket and Bilboes, respectively. Pretty much saved by the high gold price. A high gold price meant that revenues were broadly level, at about $37 million. The gross profit was substantially reduced, down from $18 million in the second quarter of 2022 to just under $11 million for the second quarter of 2023. And that was a combination of higher, very high costs at Bilboes with no commensurate revenue. And then at Blanket, the difficulty at Blanket largely relates to higher-than-expected use of electricity, which gave rise to about a couple of million dollars of extra expense there. That flows through into the net profit attributable to shareholders: instead of being $11 million profit, it was $1.5 million loss. And that also flows through in terms of the earnings per share. And critically, the net cash flow from operating activities -- instead of an inflow of $16.7 million,…

Yes. Thank you, Mark. Our revenues are somewhat a bit down from the previous half, comparing at the previous quarter as well. That's due to lower ounces produced at Blanket, and the additional ounces that we produced at Blanket did not increase above those levels. Royalty remained at 5%, still charged at the same rate as the favorable period. Our production cost has gone up, but we'll get to the detail of the production costs in a few slides. Depreciation has increased, but due to a reassessment of useful lives, that increased the quarterly depreciation by $600,000. And that's due to reassessment of the useful lives of some generators, whichever were shot, which we do not plan to use, now that we put the scan control available. And some LHDs and generators has been deteriorated due to the [bow batration] and the [bad bow] we've been experiencing at Blanket. It's being negatively affected by other costs, to the extent of $14.3 million for the half year. There's about a $7 million swing on the foreign exchange losses. That's a $2.1 million loss for the bar up here. It came down from a gain of approximately $5 million in the previous half. As did the Zimbabwean dollar, that devaluated in the month of June, while outstanding [Technical Difficulty] liability is between 5% as devalued, and that caused foreign exchange losses. It's good that we do export 75% of our gold. That 75% is not subject to any foreign exchange losses. Also included here, it's right down the Bilboes oxides, we've placed down here on maintenance, as Mark said, that part about the additional $850,000 of impairment expenses, all non-cash. Tax expense, the effective tax rate is quite high. That's due to the bulk of those losses we've encountered, kind of a -- the things that's not redactable, that means taxable profits of Blanket, and that shows a very high tax charge for the year to date. Can we move to the next slide?

Okay, can I suggest -- Dana, could you just quickly give an overview as to what happened production-wise in the quarter?

[Indiscernible] If we look at the top graph, you can see the grade is went up last year, and peaked in quarter four, or in period three, and then it came down a bit, and it continued kind of coming down in quarter one and quarter two. We knew that that was the case, and that was one of the reasons why we installed the extra money in the plant and that model became operational end of last year. And that was the problem this year. If you're going to start -- if you look at quarter one there and quarter two and compare it to the last year, it's more or less the same tonnes that we did. But we had the higher grade last year, it helped us, so we had to do more tonnes. When you're in a buildup phase, and we were building up 80,000 ounces last year, we pushed very, very hard to get to that. And with that, we changed the GM last September, or it was removed. And then we signed on a new GM in January this year, to tore up on the mine. And with that, we had also some underground managers that were suppliers. So during this goal to get to 80,000 ounces, the safety culture, also, will anchored up. And some people lost their job because of being negligent, as far as safety is concerned. Now that rolled over into this year, and when you build up, you run on flexibility, the flexibility will come now with our development, especially on 33 and 34 level, opening up those areas, and then going down to 38 level. And when we started the year, we were slightly behind, especially getting into higher-grade places. But end of the quarter, we hope to…

Good. Okay. Thank you, Dana. Can we move on to the next slide? So Chester, back to you to talk about production costs.

Looking at our costs of wages, Blanket mostly reflects inflationary increase of [indiscernible]. Consumables, last year, we experienced the inflationary pressures on our consumable costs. This year, we haven't seen that, we've seen that plateau, and no, we haven't seen the same increase as last year. What's important to note here that about 75% to 80% of our costs are fixed and on short term, so on our on-mine cost, there aren't spaces. These production numbers look so great with lower production, but as we move forward, and as our production increases, like it has in July, and so far in August, you can see a great reduction on our on-mine cost now. Electricity costs, that's $6.4 million at the Blanket level, that does not reflect the $1.4 million in solar savings, due to the solar plant, it was commissioned earlier this year. The solar plant's working well and saving us money from a group perspective. And then we've also initiated a new agreement with the IEUG, the consortium, that we'll start into soon, and allows us to get power, the lower kilowatt per hour rate, and what we get from utility. Our kilowatt hour usage, we're looking at that, looking to reuse that. So going forward, power should reflect a lower rate than what you see here. And we should see some more benefit from solar. Bilboes oxides, that's now been placed on care and maintenance, and continue to have a high cost of $7.5 million for the year, that's costs for the mine waste-stripping that we had to fund, to get to the oxide. And we plan to mine the oxides, now that the sulfides beneath us can be motivated with [ions]. On that production cost, on the on-mine cost per ounce basis in the next slide, you…

Good. Unless -- Thank you, thank you, Chester. So as I've mentioned, July was a strong month. So here's the information relating to July that was in the MD&A: the grade is 3.6g/t; gold recovery, 93.6%; producing just over 7,800 ounces of gold at an annualized rate of just about 93,000 ounces a year; with a very competitive on-mine cost per ounce of $715, which equates -- is comparable to approximately $700 an ounce last year. So hopefully, we turn a corner, and July shows that we should hopefully be looking for much better second half the year, the first half of the year. Could we move on? Early on, a few weeks ago, we restarted deep-level drilling in January. We'd had to suspend deep-level exploration several years ago because we just didn't have the logistical capacity underground to do exploration at the same time as doing all the development and the production. So having got Central Shaft commissioned, we've now got the capacity to excavate, mine out the drilling cubbies, which then create just the platform for deep drilling. It's fair to say that of the -- currently, we've got two exploration targets. The first target on which we reported, and which is summarized here, is at Eroica. We've just started also, now, in a second area on the other side of the mine at Blanket. But it's fair to say that the results that we got at Eroica -- pretty much a very substantial majority of the holes supplies on the upside, in terms of grade and width. And that means that in due course, hopefully towards the end of the year, we will reflect the better of the expect the results, in terms of a new resource statement, which will mean that we're going to be extending…

Yes. If anyone has a question, can I ask you just to raise your hand? And we can unmute you. [Indiscernible]

Hi. Can you hear me?

Yes.

So I just had a question regarding the dividend policy. In a scenario where the production and cash that continue to disappoint, what is the likelihood that that would be maintained at $0.14 per share?

Well, the -- that's one question, the other question is, what do we do to the dividend in terms of the very substantial investment requirements for Bilboes?

Right.

And we've always said that our policy is to pay a dividend, but we've also, again, said that whether we maintain the dividend depends on our view about capital allocation. And it's not just affordability, is it really the right thing to do as you go forward, to continue to pay dividend, given the fact that the money we pay out in dividends is money we have to raise to fund the Bilboes project. So that's all part and parcel of the work that we're doing at the moment, relating to how to commercialize Bilboes. Where you started from, the idea always was that we would -- our dividends weren't formally pegged to performance. As you'd probably be aware, we never said, Q2, well, eight in a quarter, a quarter's production, quarter's profit was this, therefore the dividend is that. Now, we never did that. So there was no clear correlation between the two. And frankly, given the fact we can see a substantial improvement in the operating performance right now, that itself would not be a reason for canceling dividend. The bigger issue, really, comes to how we're going to fund Bilboes.

Great. I just have a few more questions, can I get through those or?

Yes, yes, yes.

Oh, okay, cool. So in part, some of the electricity costs at Blanket rose because of extended use of Jethro and No. 4. Can I ask what is stalling the transition to Central Shaft? I saw, like, in the MD&A, there was, like, commissioning problems with the old power systems. Can you maybe add some color to that?

Yes, Dana, would you like to pick that up?

It's actually twofold. When we equip a Central Shaft in the beginning, compared to last year, we only did waste through Central Shaft. I mean, at the end of the year, we started doing reefs as well at Central Shaft. And man, this year is -- by the end of the year, the 50% of our reef will go through Central Shaft, and 50% will go through 4 Shaft. And as you migrate towards Central Shaft -- that will happen over the next two to three years, then you will put, basically, 4 Shaft as a standby shaft, almost won't be a mine there, the same with Jethro. But at the same time, there's a lot of white areas still above 750 meters. That's because during the sinking of Central Shaft, and having the method, the working capacity, we had to target our late development. We knew we were going to find return on our investment. And as we got more work invested now, there are certain areas above 750 meters that we're targeting and opening up, and that's sort of bonus areas. So we might get to a point where we actually find extra stuff and we have already trialed extra stuff a bit above 750 meters, which will extend the life, for example, of the 4 Shaft, because there are certain areas that you can only work the resistance worse than through 4 Shaft. Other areas, like on the Eroica side, reefs you can go take, about 750 meters, we can take through Central Shaft. So that's why it's not clear-cut when we're going to stop 4 Shaft, when we're going to stop Jethro. We'll pull the pin on what we find as we explore more. And also, this year, when we started with the solar, it was a lot of rain this year, and even last week, we had to drain a tanker. So it's playing a bit of havoc with our solar electricity that we generate as well. And using it for the third year, hopefully, initially, we can budget better and get a better feel for what we will get from solar.

But in general, solar is performing in plan. What Dana's saying is that when you have rainy days and cloudy days, solar doesn't work quite well on those days. Now, Blanket is fortuitously located in an area of good sunshine, but raining in Blanket in August is pretty [indiscernible], I'm afraid. Now that's what happened early on this week.

And as we're going forward, I mean, when you get overcast conditions, then you've got to run generators to supplement the solar. And value afforded, the long answer to that is to throw a couple of battery to have that -- when the clouds come over and your solar power generation drops, then that it keeps stable.

So if you had some further questions? We'll turn --

No, yeah, I did. Let me just get to them here. So it seems -- I just wanted to ask about some of the underground technical expertise. It seems like a lot of the infrastructure issues have been addressed, but it seems like there were some of, like, human capital issues that needed, like, job skills, training, somethings like this. Can you just add some clarity to if that is growing issue or, is it okay?

Yes. Dana?

We were lucky that -- if you look at the workforce at Blanket, very stable, it was very stable, and a lot of experience. And as we started growing and building up, we had to sign on new skills. Now, that's always a danger when you sign on new people. Not every new person you sign is a great fit. So you've got to vet a correct fit: some people fit in, some don't. And with that, also, you've got to be very strong on the culture that you want to [proclive], and what you will allow and will not allow. And with that, we also actually saw that the people we lost during the stage last year includes -- because of what I explained now. And it got to get to a point where we grew our people by about 500 people. And since we started building up on more than 1,000 people, you've got to get that people fitting into the culture and the way we do things and what we allow. And that takes two years, about, to get that culture right, and then work out stabilizing and kind of get a well-experienced workforce. But currently, we have got a very good mix of very, very experienced people. And the benefit of building up was we actually managed to get some younger people in because our workforce was actually getting quite old. So there's positives and negatives, but you see it everywhere when you sign on new people and you've got to train and coach them to get into the right culture and the way you want to do things.

Right. Okay. I just have, I think, two more questions. Okay, so Motapa, with the first phase, it sounds a little bit similar to the Bilboes first phase. Would that be an accurate characterization, or? And what gives you confidence, if it is, that it will work better this time around?

Well, so when you say, we're going to go hunting for oxides at Motapa, is that what you're saying?

Right.

Yes, we may actually decide not to go hunting for oxides, given the core experience. We may actually just focus on the sulfides, which is the reason for actually acquiring Motapa in the first place.

Right. Okay.

Certainly, we don't want a repetition of what we've experienced at the Bilboes oxide project, thank you very much.

Right, right. Okay, and then my last one is just maybe something that I'm unclear on. So in the MD&A, it was cited that part of the FX losses were due to a three-week delay in the settlement of RTGS receivables. Like, previously, it was said that within two weeks, like, it was okay, then your receivable settlement from SGR. So is that change only due to the devaluation of the rapid…

I'll leave Chester to -- if Chester has the answer, that might be good. But I'll just point out to you, there is some suspicious coincidence between the really, very, very rapid devaluation of the RTGS over a three-week period, and at the same time, the pushing out of the receivable period, which has since normalized. I would just leave that out there; there does appear to be some suspicious coincidence there. But Chester, do you want to talk about that?

Yes, sure. [Indiscernible] the rate has devalued by about three times over that period of three weeks. Normally, we receive our cash from Fidelity within two weeks; they have been paying us regularly over the two weeks. 75% of our gold now goes to -- outside of Fidelity, to a company called Al Etihad. And when you see, I just got all of our cash come in two to three days of delivering the cash to them. So we haven't seen those long delays again after June. And so far, they've been -- Fidelity's been found putting maturing periods. So, so far, it's been going well, it was only about level one that cost us a lot in FX losses.

Okay, cool. That covers me.

Good. Anything else?

I don't know, thanks. Thank you.

Okay. Good. Thank you. Okay, any further questions from anybody?

I don't think there are any more questions. There was another hand up, but it's come back down. So, I think that's it.

Okay, shall we just give it a few minutes, just in case anybody has any second thoughts? No. Okay, well, on that, well, thank you. Thank you for attending. Difficult quarter, as I said. Signs of improvement in July, and hopefully, we'll do this again at the end of Q3 and there'll be a more cheerful presentation. Okay. Thank you very much for attending.