Caledonia Mining Share Discussion Threads

[338] 24/2/2016 12:30

CEY already up by 50% so CMCL should be at 60p in March/April... very good price at this level

[chipperfrd] 21/2/2016 01:53

Cyber,

You also need to be aware that the BEE-type earnings split was funded by CMCL as a loan to the other parties against future earnings. Hence, there is a fair chunk that needs to be paid off at 100% attributable to CMCL before the 51:49 split comes into effect.

[joan of arc] 20/2/2016 23:14

Look at their development plans and then do your forward p/e.

[cyberbub] 20/2/2016 22:56

Just looking in here.Ignoring the short term hedge, and assuming going forward that the company gets an average of $1200.... (yes I know that's a big assumption)... and that AISC drops from $950 to $900 due to increased production...50k oz X ($1200 - $900) / 1.5 = £8.3M profitMinus a bit of exploration, say £7.5M profit?Do they pay much tax?CMCL get 50%, so that means say £3.5M profit.So at a market cap of £24M they are on a p/e of about 7?If so, that seems about right for a highish-risk location like Zim?Of course if gold goes on a run to $1200 - 1300 then it will be very different. But at this stage are people seeing compelling upside from the current cap?Thx

[joan of arc] 12/2/2016 12:19

Spot on Chip. Mind I don't see gold falling below 1050 in this climate.

[chipperfrd] 12/2/2016 09:47

JoA,

Correct me if I am wrong.

Assuming the PoG remains above US$1,081/oz. Then for each weekly contract they will pay the difference between the Cap & the Collar (ie US$30 per hedged oz).

The 6 months (26 weeks) is split into weekly contracts for an overall 15,000 oz. Therefore each contract covers 15,000/26 = 577 oz.

So, for an example range of PoG the situation will look like this for the hedged production:

PoG (US$/oz) ... Revenue (US$) ... Payment (US$) ... Cost of Hedge (%)
1,081 .......... 623,737 ......... 17,310 .......... 2.78%
1,106 .......... 638,162 ......... 17,310 .......... 2.71%
1,131 .......... 652,587 ......... 17,310 .......... 2.65%
1,156 .......... 667,012 ......... 17,310 .......... 2.60%
1,181 .......... 681,437 ......... 17,310 .......... 2.54%
1,206 .......... 695,862 ......... 17,310 .......... 2.49%
1,231 .......... 710,287 ......... 17,310 .......... 2.44%
1,256 .......... 724,712 ......... 17,310 .......... 2.39%
1,281 .......... 739,137 ......... 17,310 .......... 2.34%
1,306 .......... 753,562 ......... 17,310 .......... 2.30%

Over the period they are fully covered for any shortfall due to PoG falling below US$1,050. So all 15,000 oz of hedged production is guaranteed to be at or above US$1,050/oz (ie US$15.75m of revenue). Above US$1,050 the cost of the hedge is limited to a maximum of US$17,310 per week down to a minimum of US$577 per week.
Chip

[joan of arc] 11/2/2016 18:48

He already did reply and I apologised for having completely misread the RNS.

[joan of arc] 11/2/2016 18:08

Thanks 338, I already did.

[338] 11/2/2016 13:46

pls email Mark Learmonth (CFO), he always replies promptly

[joan of arc] 11/2/2016 11:55

I don't know where they got their hedge from, gold has been above $1080 for 4 weeks now.

I went on their website and left a message asking for an explanation. No doubt I will get no response.

[338] 11/2/2016 11:23

poor decision on hedging, luckily only for 15,000 ounce for six month.

which could cost them over $3 millions if the gold goes up above $1250

stupid :(

[joan of arc] 10/2/2016 19:14

Are they stark raving bonkers or crooks with this hedge!!! I am inclined towards the latter. They could hedge until April right now at $1192 so why accept $1080 before then. It stinks.

[mr macgregor] 09/2/2016 15:04

"Listed on AIM, the TSX in Canada and the OTCOX market in the US, Caledonia Mining (CMCL) is not Scottish as the name suggests. Instead it operates in the more politically stable country of Zimbabwe"

That has made my day. One to send to Salmond and the one with a face like a bulldog chewing a wasp.

[windass] 11/1/2016 15:18

Good summary of the current situation

[yzulxufp] 26/11/2015 15:33

Mark Learmonth talking about CMCL's plans for growth and development at the next investor evening, run by shares mag. Probably worth having a chat with directly. Anyone around for a chat on 1st Dec?

hxxp://www.sharesmagazine.co.uk/events/event/shares-investor-evening-1-dec-2015/

[chipperfrd] 16/10/2015 18:18

Very professional presentation given by Mark Learmonth at the Denver Gold Forum.

[338] 17/8/2015 11:19

Cheer up, gold bugs: HSBC predicts a year-end recovery

[338] 22/7/2015 08:11

Interesting to see when gold price is going to test $1000 / Oz because the all in sustainable cost for CMCL is just under this price at the moment.

Is the existing plan going to change or postponed?

[ftseproactive] 17/7/2015 15:09

Interview with CFO Mark Learmonth...

[338] 03/7/2015 10:03

Are we going to have another good news?

[338] 01/6/2015 16:16

Cal.to is CAN$1.04 = 54p... so we should see well over 60p this month... I expect £1 this year :)

[338] 01/6/2015 10:45

CMCL share price might go up (double) this year