Caledonia Mining Share Discussion Threads

[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.

[joan of arc] 07/11/2018 16:22

Thanks SteMIS. I'm with IG and they are very bad about paying divis. I have had several problems with them before and a few more now.

[stemis] 07/11/2018 08:21

I received a dividend on 26 October

[stemis] 07/11/2018 08:18

Gold export must be a good source of foreign currency so I don't see why CMCL can't use that to fund their requirements. It would be somewhat self defeating for the government to stop them doing that if it interfered with mining and production; last year CMCL paid $12m in taxes and royalties, plus the salaries and local purchases - all (directly or indirectly) in $.

[joan of arc] 06/11/2018 19:09

Another question. Has anyone not received their recent dividend?

[joan of arc] 06/11/2018 19:08

Well now we know a reason for the massive share price fall. the next question is how serious could this get?

[argoal] 05/11/2018 13:34

I've just put my toe in the water here with a modest 2K purchase.

In the absence of any news the fall looks very overdone. Buying in here fits my longer term strategy of having 10% of my portfolio in Gold or Gold mining stocks.

There is a lot that could go wrong here but with a yield of 6.5% plus a P/E under 4 it looks like there is a decent chance of this doubling or better.

If positive news comes up then I'll be happy to add again.

[stemis] 05/11/2018 10:59

Even for CMCL this share price weakness is odd. P/E now under 4

[sharesoc] 04/11/2018 15:22

Caledonia Mining present at our growth company seminar in London on the 14th November, may be of interest to current shareholders or potential investors: hTTps://www.sharesoc.org/events/sharesoc-growth-company-seminar-in-london-14-november-2018/

[sharesoc] 23/10/2018 12:00

Caledonia Mining present at our growth company seminar in London on the 14th November, may be of interest to current shareholders or potential investors: hTTps://www.sharesoc.org/events/sharesoc-growth-company-seminar-in-london-14-november-2018/

[stemis] 11/10/2018 08:22

Relatively mild profit warning (15-20%) due to slightly weaker gold price and production coming in at lower end of forecast. Now on a heady P/E of 4.1 - 4.4, with net cash and dividend and on track to increase production by 45-50% (and therefore profit by more). Dividend yield is 4.4%.

Just going to sit here and wait.