Caledonia Mining Share Discussion Threads

[3800] 25/7/2019 20:42

Looks like the shaft sinking at the new Central Shaft at Blanket Mine has been completed. So output is sheduled to increase to just over a tonne a year by 2022

[stemis] 20/3/2019 09:48

The currency issues in Zimbabwe don't seem to be affecting production that much although clearly have slightly delayed the mine expansion (by only a few months I'd guess). I think it's inevitable though that the share price is going to be largely driven by political sentiment in the short/medium term.

[338] 13/3/2019 08:53

have you seen SHG is moving up this morning... plenty more good news... 10 baggers potential

CMCL is stable

[stemis] 27/2/2019 14:05

Not great news but since the MMs have walked the price down 40% on the back of the situation in Zimbabwe, a 25-30% reduction in earnings hopefully shouldn't have too much long term impact on the share price.

[livewireplus] 27/2/2019 13:53

Indeed. Unfortunately it is a recurring hit on eps :-(

[sandeels] 25/1/2019 10:42

J of A, you may be right about walking the price down and holding ones nerve. I've lost mine and decided to cut my loss a couple of weeks back on the basis that i) it could be a long wait and ii) better to take a loss and switch to one of the many great opportunities out there right now. A shame as this has so much potential. I'll keep watching though and may get back in once the political situation improves and the effect of doubling the cost of fuel becomes clear.

[joan of arc] 22/1/2019 16:03

Looks like Zimbabwe is going down the tubes again. How bad will it get? I would have thought they would do everything they can to keep the gold flowing as it is a dead cert for getting foreign currency.
It is clear the MMs are walking this down to draw out panic sellers as there is no volume of trading. I guess we just need to hold our nerve.

[stemis] 14/1/2019 08:22

So far production seems unaffected by the currency issues in Zimbabwe, with Q4 output (14,952 oz) the highest quarter this year. Guidance for next year is 53,000-56,000 with no mention of currency issues. Company on track with central shaft and increase in production to 80,000 oz from 2021 and next 5 months gold price hedged at $1,250/oz. All good news it seems.

[stemis] 15/11/2018 08:55

The investment proposition here isn't really the dividend but the impending increase in output from 55,000 to 80,000 oz and the low rating.

Comparing last half year reports

CMCL - output 25,582, earnings $8.0m, net cash $5.3m, market cap $61.3m
AAZ - output 37,349, earnings $5.1m, net debt $2.9m, market cap $110.8m

If CMCL was on the same rating as AAZ it's share price would be 3 times what it is now.

[broken_arrow1] 15/11/2018 07:50

Looks like AAZ is the safer dividend play v CMCL given recent events in Zim - they are also going to be far more aggressive increasing the payout, the forward yield is over 6% right now

[meanreverter] 14/11/2018 17:48

IG credited my CMCL dividend on 13 Nov.

[stemis] 14/11/2018 14:01

The dividends are paid by the holding company from funds held outside Zimbabwe. In the medium and long term they do of course depend on receipt of profits from the Zimbabwean operating company.

I think (but am not 100% sure) that nearly all the cash on the balance sheet is in the holding company (and the bank loan/overdrafts in the operating). As at 30 September that was $9.8m. Annual dividends cost $2.9m a year so in theory they could continue dividend payments for quite a while.

However, if the operating company is struggling for foreign currency to fund the capex, then they may decide to use the holding company cash to fund it. Cash has gone up by $1.8m in the quarter so that doesn't seem to be the case so far...

[joan of arc] 14/11/2018 11:39

Finally got my dividend from IG - only 3 weeks late

[joan of arc] 14/11/2018 11:38

Dividends will go next as they preserve their capital investment programme.

[chipperfrd] 09/11/2018 16:39

Just for info: HL paid the CMCL dividends into my accounts on 26th October !

[joan of arc] 09/11/2018 13:18

I was aware of that but I talked to my account manager at IG and told him they should give their broker a good kicking. Pretty well every other broker can credit your account on the day of payment so why can't they credit IG's likewise.

[meanreverter] 09/11/2018 12:49

Joan: It seems that CMCL dividends for IG clients have to go via a broker, who doesn't appear to be in a hurry about passing on other people's money. On checking, I see that the previous quarterly dividend, due on 27 July, was credited only on 6 August—a delay of 10 days.

[joan of arc] 09/11/2018 11:59

PS I've already alerted them to the CMCL divi which supposedly they are investigating

[joan of arc] 09/11/2018 11:58

Agreed but their dividend management is abysmal. I also told them that the way they present transactions and statements against your account is poor.

[meanreverter] 08/11/2018 22:35

Joan of Arc: I'm with IG too, and didn't get the CMCL dividend promised on 26 October. I will be taking it up with them. To be fair to IG, they do answer phone calls promptly, and make an effort to sort out things that have gone wrong.