Caledonia Mining Share Discussion Threads

[tigerbythetail] 13/10/2021 11:26

Yes, it does. It's nice to own a share and not have to worry about "surprises" of the unpleasant kind.

[mikkydhu] 13/10/2021 10:48

What I especially like about this company is that it does what it says it will do.

[buffetcharliemtesque] 13/10/2021 10:36

I love the sleepyness of this thread. I will quietly leave the Q3 highlights here- · Record quarterly production of 18,965 ounces of gold during the Quarter · An increase of 25 per cent on the 15,155 ounces produced in the corresponding quarter of 2020. · Production guidance for the year to December 31, 2021 has been narrowed at the top end of previous guidance at 65,000 and 67,000 ounces. · Gold produced in the nine months to September 30, 2021 was 48,872 ounces, 14 per cent more than the 42,887 ounces produced in the nine months to September 30, 2020. · Caledonia remains on track to achieve its production target of 80,000 ounces in 2022. [1] Commenting on the announcement, Steve Curtis, Chief Executive Officer, said: "I am delighted that this quarter we have once again set a new production record as Blanket begins to reap the rewards of the substantially increased production capacity following the commissioning of the Central Shaft in March 2021. "The ramp-up in production towards our quarterly target of 20,000 ounces has met our best estimate and, consequently, we have been able to narrow our annual production guidance from 61-67,000 ounces to 65-67,000 ounces. "When we acquired Blanket from Kinross in 2006 our production in the third quarter of 2006 was 6,475 ounces - the Company has come a long way since then. Central Shaft provides the infrastructure required to access the deeper resources at Blanket for many years before any new vertical shaft deepening needs to be considered. The extra hoisting capacity provided by the shaft is the foundation to the production build-up to 80,000 ounces from next year onwards. "The completion of Central Shaft and the resultant increase in production also means that we are able to execute other areas of our growth strategy such as the agreement to acquire Maligreen that we announced last month. This is an exciting time for the Company and I look forward to continuing to update shareholders of our progress."

[stemis] 05/10/2021 16:26

Presentation on Youtube https://www.youtube.com/watch?v=EhUp11Ed89w

[tightfist] 05/10/2021 07:45

Thanks SteMIS, much as i anticipated. Backs against the wall, and selling the family silver! tightfist

[stemis] 04/10/2021 11:36

Hi, No, anything of value has long gone from Zimbabwe although they have had some success buying reconditioned equipment from South Africa.

[tightfist] 04/10/2021 08:17

Hi SteMIS,Much appreciate your CMCL posts. The Maligreen mine/tenement acquisition does look very attractive from a gold-in-the-ground perspective. .Do you have insight as to the situation within Zim regarding availability of pre-owned and mothballed extraction process plant that could be re-sited and commissioned? One can imagine defunct mining companies eager to off-load kit; or has it been exported and is long-gone?.Would appreciate your views. Cheers, tightfist

[stemis] 04/10/2021 08:10

Seems like my comment re dividend on post 288 was on the money as Caledonia announce another 8% increase:- Other disclosures - things are going as well as they said they would; production continuing to increase quarter by quarter (q3 ends in a week) and seemed to be hinting at a further dividend increase - "Business is going really well"

[tigerbythetail] 04/10/2021 08:09

Dividend increased (again) to 14 cents (quarterly) - 56 cents annually. Always welcome news!

[nthn] 24/9/2021 19:00

Nice perspective thank you.

[stemis] 24/9/2021 18:49

From what I understand the seller (a private Zimbabwean company) needed money to progress one of their other properties, so it was a kind of fire-sale. Nobody else in Zimbabwe was able fund an acquisition for cash on this scale. Although non-Zimbabwe gold miners knew the property, they don’t have the in-country capacity to progress it. One of the advantages, I guess, of being an existing operator in a country which others see as high risk. Personally I think CMCL are ideally placed to take advantage of opportunities as Zimbabwe tries to exploit it's natural resources. Others, of course, may take a different view...

[nthn] 24/9/2021 17:23

SteMis re: "he disclosed that the drilling that has already been done on Maligreen (60,000 m of diamond drilling and percussion drilling) would cost considerably more than what they've paid for the project" Any idea why they'd sell the site so "cheaply" given that investment?

[stemis] 24/9/2021 13:13

Another interesting interview with Mark Learmonth in which he disclosed that the drilling that has already been done on Maligreen (60,000 m of diamond drilling and percussion drilling) would cost considerably more than what they've paid for the project. Other disclosures - things are going as well as they said they would; production continuing to increase quarter by quarter (q3 ends in a week) and seemed to be hinting at a further dividend increase - "Business is going really well" hxxps://youtu.be/mDrSrwJQqHY

[dozey3] 23/9/2021 22:38

I did luckily sell half at 1806 on 27 July last year, usually the signal for a further even more substantial rise. Now sorely tempted to double up again at this bombed out price. What holds me back is lack of understanding why it’s fallen so far out of favour.

[stemis] 23/9/2021 22:10

Sounds like a good strategy. Amazingly I've held these since 2012 (!!!) and bought at 235.63p (inc costs). I've even had 94% of my original investment back in dividends. There are risks with the share; price of gold, Zim politics, sentiment, but one thing I've always believed is that management know how to run a gold mine, are on shareholders' side and aren't going to take stupid risks with our money. Kicking myself for not selling at 1800p obviously, but think we'll eventually get beyond there

[tigerbythetail] 23/9/2021 21:00

Thanks for posting the interview, Stemis. I'll go back to sleep here now - no point in getting too excited. I'm intending to hold onto these shares for ten years or more whilst the company makes ever more money, pays an ever increasing dividend, and expands in an ever more stable Zimbabwe. Since I bought some shares back down at 400p, my "yield" is already impressive, and it will only get better from here. Good night, all.

[stemis] 23/9/2021 13:23

Mark Learmonth, CFO of Caledonia Mining joins Tim to discuss today's announcement of the companies' agreement to purchase the Maligreen gold mine in Zimbabwe, especially the due diligence they did and the fact that they've been discussing this acquisition for quite a while. hxxps://youtu.be/on0BFEWAXU8

[stemis] 23/9/2021 10:45

WH Ireland - Caledonia is on the cusp of being cash-rich following the completion of the Blanket expansion and this looks a perfect project, along with its existing Connemara North project, for Caledonia to look to organically grow its production base in Zimbabwe.

[stemis] 23/9/2021 08:41

Yes, looks a good deal. Knowing how prudent CMCL management are, I'd guess they are pretty confident of the viability of the project to go for an outright purchase...

[tigerbythetail] 23/9/2021 08:30

This morning's RNS concerning the purchase of Maligreen is a remarkable deal. I read it like this... 60,000m of drilling + test work + strip back for open pit (abandoned when gold price crashed in 2002; Using higher cut off grade of 1.0 g/t - 872 oz of inferred at good grade of 2.79 g/t; 3/4 of above should be open pittable; purchase price - $4m cost price + $1.6m confirmatory drilling etc. = $5.6m That is less than $10 per ounce for high grade open pittable inferred gold resource. This looks like something that would be fairly easy and cheap to get into production within 4 years or so.

[pi0110] 21/9/2021 15:09

A great opportunity for share buy backs if ever there was.

[stemis] 21/9/2021 13:21

Whilst the share price seems becalmed at around 900p, I've looked at the WH Ireland research note of 12 August. On production of 79.6k oz and a gold price of $1,650, they are forecasting 2022 earnings of 257p (352c), a dividend of 58p and cash of £47m. At 880p (at the time of the note) that's a PE of 3.5, EV/Ebitda of 0.8 and a yield of 6.4%. 2023 forecast is for cash to increase to £72m and dividend to 73p (a yield of 8.2%). Current market cap is £109m.

[ntv] 03/9/2021 07:25

Caledonia Mining Corp Plc CMCL US 43,612 534,247 0.11 I found this figure not the figure quoted in RNS I think somebody needs to go to spec savers! Unless it is a very recent purchase

[fredfishcake] 12/8/2021 08:53

Totally agree about Glen Hume, shows they have the cojones to make tough decisions. TBH I'd be quite happy if they just sat on Blanket and returned the cash to shareholders as they have been doing.