Central African Gold Share Discussion Threads

[kajshares] 11/1/2010 14:55

86% of shares in the hands of institutional investors. The company in financial difficulties but intrestingly the two main creditors are the two biggest shareholders. These investors have also ensured that there are enough funds to enable the comany to trade for at least one year. However falcon mine needs funding for refurbishment. May be sold, but I doubt it. The creditors also hold very lucrative options/warrants, which may mean further dilution in future.

Gold going through the roof.

Pricewise, it appears that a big seller being cleared. Only Cancord Adams offering 0.07p. MACD at lowest level.

This could be bad news or it could put a smile on one's face in 6 months. £2100 for 300k shares.

All in?

[0nly me] 09/1/2010 16:42

Off topic, I know - but, HZM well worth a look - please see three recent articles, newsflow due to commence in January, and market capital of only £3m.
Enormous potential, and well funded for the next 12 months.

[robson1974] 08/1/2010 10:21

Falcon Gold: Going, going, gone? PDF Print E-mail
Thursday, 07 January 2010 17:42

FALCON Gold, a major mining company in the country, may soon go under the hammer due to severe operational problems. The company's chairperson, Roy Pitchford, said the mining concern was exploring several options to secure the future of the firm.


Among the options, he said, was selling the company to new investors.


"The focus of Central Africa Gold (CAG) is now to secure the future of Falcon Gold and to this end several options are being considered including further debt financing, the introduction of a strategic partner either at the CAG or the Falcon level and the sale of the Falcon Group to investors who undertake to provide adequate funding to fully restore the mining operations of the company," said Pitchford.


The future of Falcon Gold, one of the biggest gold mines in Zimbabwe, would be made known during the first quarter of this year.


Pitchford said lack of funding since 2008 and non-payment of gold lodgments by the Reserve Bank of Zimbabwe impacted negatively on production levels.


"The absence of adequate funding during 2008 resulted in very limited gold production, a situation that has continued throughout 2009. The suspension from trading on the AIM exchange in London requested by CAG coupled with the world economic situation has prevented CAG from raising adequate capital," Pitchford said.


He said the global economic downturn has made it impossible for CAG to support Falcon Gold.


The company's principal property - Dalny Mine in Chegutu - last year treated 22 936 tonnes of ore producing 9,52 kg of gold and at an average yield of 0, 41g a tonne. Vince Mine in Kadoma, Golden Quarry and Camperdown Tribute in Shurugwi are under care and maintenance.


Several mines in the country have shut down in recent years, suffocated by hyperinflation, lack of skills, power and foreign currency.


Gold is a key foreign currency earner for Zimbabwe's struggling economy and accounts for about 52% of total mineral production and a third of export earnings.


Gold deliveries fell to 13 000 kg last year from 21 300 kg the previous year with the central bank saying the mineral was being smuggled abroad where earnings were higher.


The mining sector has been on the decline since 2000. This is despite the fact the country has a huge base of mineral resources and that there had been a sustainable worldwide commodity price boom from 2004-2008.


Last year, Prime Minister Morgan Tsvangirai said the country could attract up to US$16 billion in exploration and mining investment if it corrected policies that have scared away foreign investors.


Mining has become a pillar of the country's battered economy following the collapse of commercial farming.


But large mining houses have kept away from Zimbabwe's mining sector after an economic crisis worsened by a nationalisation law requiring majority holding by locals in foreign-owned mines.

[robson1974] 08/1/2010 10:20

Someone posted on the MWA board re zim newspaper articles suggesting Falcon Gold will be sold off in a fire-sale.

[staddles] 07/1/2010 18:12

Agreed, having written the value off, I thought I would hold just on a punt, I am now regretting that decision, although they claim to have finance, which could be long enough for a change of direction.

[daytraders] 07/1/2010 17:34

Staddles, there was another 1,098,643 sales in the afternoon at 0.60p 0.63p, well i think they were sales, thats why now bid 6 ask 7.5, think it lowered because people selling, i had 350,000+ of these but have just 120,000 left now, was happy to get what i got back even.

[robson1974] 07/1/2010 17:21

looks like someone (an institution?) was away over Xmas and came back see this is trading again and just want to get shot of it

[staddles] 07/1/2010 16:58

Daytraders

Why the further fall late today? are the MM trying to get more stock cheaply? The moves down seem a little extreme.

[daytraders] 07/1/2010 13:00

All buys today since 11.47am yesterday, yesterday there was a 630,000 sale at 0.5p and 70,000 sale at 0.55p, but since then there has been all buys at 0.68p 0.75p totalling 1,321,313 as off 12.15pm today, dont forget was also a 1,030,997 buy at 0.88p monday evening.

[staddles] 06/1/2010 12:45

What TF is going on with the SP, the MM seem to be playing a meery tune anyone got L2 to get a feel for the 920,000 traded today?

[daytraders] 24/12/2009 10:02

ihavenoclue - look forward to video :) merry xmas to you and the rest.

[daytraders] 24/12/2009 10:00

well tbh guys i was set on getting nil back, so even thou im well down i am really surprised at the sp, i like this part below, seems were funded for a good year.

As a result of the support of the major shareholders, the Company is now able to demonstrate that its cash resources are sufficient to meet the expected outflows for the 12 months ended 31 December 2010.

[ihavenoclue] 24/12/2009 09:58

Daytraders - 24 Dec'09 - 09:36 - 740 of 741


ihavenoclue - whatever i see xmas at your house is going to be fun, NOT, just for you 0.5p

===========================================

Not spending it at my house ... spending it with family .. shall I video my front room while I am out and report back later ? :-)

[pre] 24/12/2009 09:53

extract from final results released today....going concern reference in audit opinion from auditors -how does this affect CAN's ability to continue..guess this was part of the reason for suspension:

Emphasis of matter - Going Concern
In determining the form of our opinion on the financial statements, we have
considered the adequacy of the disclosures made in note 1 to the financial
statements concerning the Group's and the Company's ability to continue as a
going concern. In particular, the ability to continue as a going concern is
dependent upon the Group effecting suitable financial and other arrangements to
enable the development of the Zimbabwean assets and also to the successful
completion of the sale of the Mali assets. These conditions, along with other
matters explained in note 1 to the financial statements, indicate the existence
of a material uncertainty which cast significant doubt on the Group's and the
Company's ability to continue as a going concern. The financial statements do
not include the adjustments that would result if the Group and Company were
unable to continue as a going concern.

KPMG Audit Plc
Chartered Accountants
Registered Auditor
23 December 2009

[daytraders] 24/12/2009 09:36

ihavenoclue - whatever i see xmas at your house is going to be fun, NOT, just for you 0.5p

[addict] 24/12/2009 09:21

Not for the faint-hearted but I liked the comment that they have sufficient funds to 31/12/2010.More than can be said for some AIM stocks!

[pre] 24/12/2009 09:16

...someone's confident...310K snapped up on plus...

[addict] 24/12/2009 09:16

Looks like there's life in the old dog yet.DYOR

[pre] 24/12/2009 09:10

following the same pattern as UEN the other day....looks like we may hit blue!!

[daytraders] 24/12/2009 08:54

yeh im holding i aint selling at 0.05p thats for sure, i noticed on my level 2 333,000 of buys just gone through, could be bottom here and bargain hunters on the prow maybe :)

[comedy] 24/12/2009 08:49

well just topped up...

[daytraders] 24/12/2009 07:45

4 RNS just released, including restoration rns :) i will be keeping my shares as honestly i thought CAN was not coming back and had wrote my 5K off, as im not selling them cheap.

read them all here as just the final results rns is massive.



Restoration - Central African

print mail a friend more announcements

TRADE HERE

RNS Number : 6783E

AIM

24 December 2009













NOTICE



(903)



24/12/2009 7:30am



RESTORATION OF TRADING ON AIM



CENTRAL AFRICAN GOLD PLC



The trading on AIM for the under-mentioned securities was temporarily suspended. The suspension is lifted from 24/12/2009 7:30am the company's annual report and accounts having been published and an announcement having been made.







Ordinary Shares of 0.5p each

fully paid

(B1YQTS1)(GB00B1YQTS12)







Warrants to Subscribe for Ordinary Shares

(3411869)(GB0034118694)







If you have any queries relating to the above, please contact the company's nominated adviser on 020 7409 4154.



Ref: AIMNOT903



This information is provided by RNS

The company news service from the London Stock Exchange

END

[daytraders] 21/12/2009 13:55

yeh i will be holding now, but there will be some sale off, hopefully 0.9p the low, but as most like me thought the game was over it is good news, alot of these shares are tightly held so they wont sale anytime soon, were have restoration rns by 25th now i think.

Shareholding at 25 August 2009
Shareholder No of shares held % of shares held
Emerging Capital Partners Llc 502,242,493 50.02%
HBD Zim Investments Limited 282,985,496 28.18%
Investec Asset Management 105,184,269 10.48%

so just 11% in public hands