Caledonia Mining Share Discussion Threads

[stemis] 13/8/2018 10:21

A few director buys there...

[stemis] 09/8/2018 16:26

It's often hard to know what drives the share price in the short term. Cashflow was weak but that was due to working capital movements which hopefully should reverse. Production was known since July and the company reiterated its full year and 2021 forecasts.

[a2584728] 09/8/2018 14:30

Price whacked. Am I missing something

[3800] 20/7/2018 14:16

thanks for the clarification thechurch333

[thechurch333] 19/7/2018 22:33

3800 - Caledonia have confirmed a rights issue will NOT be happening. The proposed rights issue in question was in any case to be done by the Blanket gold mine and NOT by Caledonia. It was basically a way of Caledonia regaining over 50% control, but now the indigenisation rules have been relaxed Caledonia is trying to buy out some of the other shareholders in the Blanket mine instead and gain >50% control that way. I suspect we will be hearing more news on this in the near future.
Hope this helps.

[3800] 19/7/2018 15:16

I have just got round to reading the brokers note posted by SteMis. This bit

With the Zimbabwean government relaxing indigenisation requirements for gold miners, the Blanket gold mine is to undertake a US$4m rights issue underwritten by CMCL’s Zimbabwean subsidiary. Since this time we have seen CMCL announce that Blanket will receive an increased Export Credit Incentive (10% cf 3.5% previously). As a result we consider the rights issue may not be required. However, if this rights issue takes place it would likely leave CMCL again owning a controlling c 51% share of the Blanket mine.

Doe's that mean the we may be seeing a possible rights issue or have I misunderstood it?
3800

[joan of arc] 12/7/2018 09:50

CMCL are getting careless

[thechurch333] 21/6/2018 15:22

Stemis - 100% agree - again!

[stemis] 21/6/2018 15:17

It may seem optimistic but I'll just repeat the post I made last month:-
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SteMiS 1 May '18 - 13:46 - 423 of 435 Edit



DCF valuation = 911p.

Interesting that their cashflow projections show that by 2021 they will have net cash of $85.3m and an ebitda of $76.6m. Current market cap is $99.7m. If they hit these numbers can't see the share price in a couple of year as anything other than at least 3 or 4 times the current level.
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Market cap is now $93.3m. Current dividend of 6.875c per quarter costs a paltry $2.9m.

[thechurch333] 21/6/2018 10:54

New presentation on the company's website given to the Natural Resources Forum yesterday. Well worth reading. Talking about options for deploying cash-flow. Openly talking of a six-fold increase in the dividend by 2021 if no better opportunities come along.

[thechurch333] 20/6/2018 14:03

SteMis -agree 100%

[stemis] 20/6/2018 13:56

What is specifically attractive about CMCL is that they are in a great place to take advantage of the improving political situation in Zimbabwe. They have on the ground knowledge and capability, a cash cow there and, I imagine, government contacts. Zimbabwe need development of their mining to bring tax revenue and foreign currency. I'd rather CMCL did that than diversify into other countries. If I want diversification into other countries I can do it myself.

[fredfishcake] 20/6/2018 13:28

I agree, this lot are probably a better bet that their predecessors, and CMCL did well under their predecessors anyway. I'm a long way from saying that this is a bad investment, just that Zimbabwe is on the riskier end of the spectrum. If CMCL had the opportunity to diversify into other countries, it would reduce the overall risk.

[thechurch333] 20/6/2018 10:48

fredfishcake - I think that's a reason for not investing under the previous Zim regime. All the signs are that the new regime want to expand the mining industry to get some much needed dollars into the economy. They need the likes of Caledonia to achieve their aims.

[fredfishcake] 20/6/2018 10:38

I wonder whether there's any scope for diversification here? I'm normally all for sticking to their knitting, but a sizeable proportion of investors just won't touch a company which could vanish overnight at the whim of the Zim government.

[sharesoc] 20/6/2018 10:30

Caledonia Mining’s presentation from our recent London seminar is available here:

[sharesoc] 09/6/2018 14:02

Caledonia Mining present at our London seminar on Wednesday which may be of interest to shareholders or potential investors, limited places available:

[sharesoc] 30/5/2018 12:17

Caledonia Mining present at our London seminar on the 13th June which may be of interest to shareholders or potential investors, limited places available:

[sharesoc] 24/5/2018 12:54

Caledonia Mining present at our London seminar on the 13th June which may be of interest to shareholders or potential investors, limited places available:

[danieldanj] 14/5/2018 07:37

Here’s the link to CMCL’s numbers to take a look at

[daz] 11/5/2018 10:31

I'm also surprised the company hasn't attracted further interest, the changes in Zimbabwe open up a lot of opportunities and the company has the cash resources, which as above are also growing, and the local knowledge to take advantage.

[hastings] 11/5/2018 06:50

Still way off the radar of most investors, but likely to change as the story continues to build.

[338] 11/5/2018 06:44

£25 is my target when the company can secure another new licence somewhere else in Zimbabwe

[stemis] 01/5/2018 12:46

DCF valuation = 911p.

Interesting that their cashflow projections show that by 2021 they will have net cash of $85.3m and an ebitda of $76.6m. Current market cap is $99.7m. If they hit these numbers can't see the share price in a couple of year as anything other than at least 3 or 4 times the current level.

[stemis] 25/4/2018 08:58

Even at £7 this is only on a P/E of 5.2 - 6.0 and if you deduct the cash 4.6 - 5.3. With significant expansion in the pipeline, which should at least increase profits by 50%, that's still very cheap.