Central African Gold Share Discussion Threads

[bonsoir7] 05/10/2010 10:04

advfn numbers above are wrong

the market cap here is more like £20m not £2m !

there has been MASSIVE DILUTION

89% of shareholder sold out at 80% less than current price just 0.29p !

[andrbea] 05/10/2010 09:58

state of play:

they have 2 gold mines that were mothballed but which (thanks to the new controlling stakeholder) are in production again since August. So generating revenues, which should, in time, perk up (IMO) the share price (compared to August level)

The stakeholder (New Dawn) is enjoying a re-rating (eg a strong price chart in Toronto) and is mulling a Zimbabwe listing too.

nia dyor

[andrbea] 04/10/2010 08:46

ND up 6.25% overnight

ND might as well do an RTO into CAN's London listing IMO
Why not?
They already have a controlling interest:

New Dawn Mining (TSX: T.ND, Stock Forum), meanwhile, reported that effective June 16, 2010, it had made an investment resulting in the acquisition of an approximately 89% controlling interest in Central African Gold Plc (CAG) from the three largest shareholders of CAG. CAG is a gold mining company with operations in Zimbabwe, the shares of which are admitted to AIM, a market operated by the London Stock Exchange plc. New Dawn stock popped as much as 14% to $1.29.

[andrbea] 01/10/2010 09:10

NEW Dawn, the company that has taken an 89 percent stake in Central African Gold, is embarking on a strategy in Zimbabwe that could see it become a 200 000 oz-a-year gold producer, says CEO Ian Saunders.

The Canada-based company says it could also combine the two groups' assets and list them on the Zimbabwe Stock Exchange.

Central Africa's Falcon Gold unit is already listed on the bourse.

New Dawn, which made a hostile takeover of AIM-traded Central African in June, had advanced that company US$2m to restore production at Falcon on a "limited basis", Saunders said last week.

Because the acquisition was hostile, no due diligence study was made of Central African's assets and New Dawn relied on publicly available information, he said.

The company is now conducting a full strategic review of the assets in Zimbabwe and will complete the process next month to develop a three-phase plan.

This entails stabilising Central African mines so they stop "bleeding", restoring the Falcon assets to production levels of about 2006 levels, and then entering a growth period, which will take into account what potential exists in the company and what can be consolidated in Zimbabwe, Saunders said.

New Dawn reckons there are 20 fair-sized gold assets in Zimbabwe, owned by about a dozen companies. It is these it has its eye on, he said.

"We have a specific plan to become a mid-tier gold producer in Zimbabwe, with production of between 200000oz and 250000oz ," he said.

"We believe that in the next 18 to 24 months we'll be coming to the tail-end of our recovery phase, taking the Central African assets and sweating them, and get to around 50 000oz or 60 000 oz for a relatively low capital outlay," he said.

Central African's Old Nic and Dalny mines had been taken out of care and maintenance and returned to production, New Dawn said last week.

It wants to achieve 100000 oz within five years. New Dawn by itself is a 15 000 oz-a-year gold producer.

A central roasting facility in Kwekwe to deal with refractory ore and operated by the government has closed down. Gold producers in Zimbabwe had set up a working group to find a solution, Saunders said.

[bonsoir7] 30/9/2010 23:23

oh dear...

Another gold mine, Falgold, which is in a fundraising quandary, was slightly lower at US7,10c with Bindura down 0,60 cents to close at 14 cents.

Falgold was financed to the tune of US$2 million by its new parent holding company, New Dawn Mining Corporation but the conditions of the loan have scared away investors.

However, investors are not keen on the shares because the loan is payable on demand and the shares will remain flat until the company gets a convenient funding model.

In the first six months of the year, Falgold generated just above US$200 000 in revenue and last year it generated US$474 000.

[godolphin] 30/9/2010 14:33

tse:nd on advfn, nd.to on yahoo.

[citytrader 007] 30/9/2010 14:33

Hmm, its here thats the worry, why are people selling ?

[citytrader 007] 30/9/2010 14:20

can someone post a link to the market tsx for ND please, cant find it :)

[zak_mo] 30/9/2010 14:17

Good question, what possible effect could this have??? I am guessing they will be playing catch up....anyone have a ticker code???

[thecynical1] 30/9/2010 14:09

interesting but have you ever heard of a shareprice recovering......there is presumably something going on here.....the question is just..."what precisely".....

[andrbea] 30/9/2010 14:07

since the basher's post (June 2010) the gold price has taken off

since a month back the new owner (New Dawn) has seen its share price rocket from 1.1 dollars to 1.8 on the tsx

Since August CAN's 2 mines are producing again

what's not to like?

[bonsoir7] 30/9/2010 14:02

LOL

the 'takeover' was at 0.0029 that's about 80% less than the current price

Daytraders - 17 Jun'10 - 10:53 - 833 of 913


well i got out ages ago at big loss here, so well done guys, but i find it strange that the 3 biggest shareholders sold there can shares at like 0.29p per share, like 300% cheaper than share price now, dont understand why these at this price tbh, but gl all.

The Acquisition resulted in an effective price of Cdn$0.0044 or ₤0.0029 (based on Cdn$1.5026/₤ 1.00) for each ordinary share of CAG.

[petebarnes1] 30/9/2010 13:54

I may top up as this has a long way to go re rate under way.

[petebarnes1] 30/9/2010 13:49

Arrr right i will pop back and pop some later, still a fantastic stock this.

[thecynical1] 30/9/2010 13:30

pete....you forgot your tablets this morning !!!

[petebarnes1] 30/9/2010 13:24

looks fantastic took me a phone call to get shares this morning very hard to gain.

[andrbea] 30/9/2010 13:21

one last word...

the new quasi-owner (holding 89%) of CAN, New Dawn, is no slouch as a gold producer, read:

[petebarnes1] 30/9/2010 13:14

from no operating mines to operating mines surley worth tripple now.

[petebarnes1] 30/9/2010 13:11

this could be worth 5p short term i bought

[andrbea] 30/9/2010 13:06

as to mkt cap..

the new quasi-owner (holding 89%) of CAN owns a few other mines/assets in Zimbabwe and has a mkt cap of 68m Canadian dollars

[thecynical1] 30/9/2010 13:04

afternoon all! wondering why no-one is going for the warrants if the price looks like it is about to explode ( for whatever reason! )