Caledonia Mining Share Discussion Threads

[mikkydhu] 14/5/2020 10:42

On several recent occasions the company has mentioned its intention to pursue additional mining opportunities in Zimbabwe. Steve Curtis, CEO, repeated this intention in his recent interview on Directors Talk. He said something will be announced in the not too distant future. The company will soon have the funds available both to acquire and develop a suitable property. Steve pointed out that towards the end of this year the work on the new shaft will be finishing and the company's capital expenditure there will be reducing. Furthermore, there will be greatly increased production from the Blanket Mine. This will enable the company "to look very aggressively" for new opportunities in Zimbabwe. You only have to read a little of the NI 43 101 Technical Report (June 2011) on the Blanket Mine to realise the scale of the possibilities. The company are looking for a brownfield site, probably, therefore, a former gold mine that is no longer operating. Here is an extract from that NI 43 101 Report: "The Blanket Mine is situated on the north-western limb of the Archaean Gwanda Greenstone Belt, along strike from several other gold deposits. It is one of the few remaining producing gold mines out of approximately 268 mines once worked in this greenstone belt." 268 former mines! The possibilities are absolutely enormous. If the company has access to old mining records, they may well be able to pick up the best of what has been abandoned. CMCL will have the cash. It has the mining skills. It has good working relations with the Zimbabwean authorities. I know there are issues in Zimbabwe, but there is also a lot to look forward to.

[fredfishcake] 12/5/2020 08:37

It's a tough one, as the worse case is it could overnight go to zero if the Zimbabwe government do something odd, yet it could also be a brilliant business. I feel position sizing is of importance here!

[stemis] 07/5/2020 17:08

Indeed which is why it'll never really attract a high rating. But at 75,000 oz and a gold price of, say, $1,500/oz, I reckon it'll churn out, at least, $40m maybe $45m cash a year. Even on 6 x that, that's a share price upto double the current one. They could easily pay out 150p a share dividend (cost $20m a year).

[3800] 06/5/2020 11:17

The bear case is the political and financial instability in Zimbabwe do not underestimate the mess the country is in or the level of corruption.

[pi0110] 06/5/2020 10:33

Add cheap oil and depreciating local currency v $ (salaries) thus reducing AISC and stable dividends. All looking rather good for CMCL

[stemis] 06/5/2020 09:51

With strong Q1 production (14,233 oz) and production at 93% capacity during the brief 'lockdown', seems little reason why CMCL won't hit their 2020 target of 53,000 - 56,000 oz. A strong gold price will convert that into very robust cashflow as they complete commissioning of the central shaft. Target for next year is 75,000 oz (an increase of 34-42%). With little capex and a decent gold price, cashflow is going to be a thing of beauty...

[stemis] 22/4/2020 21:43

Gold through $1,700/oz

[goodgrief] 21/4/2020 22:30

Shares Mag & AJ Bell hosting a webinar featuring Shanta Gold, Caledonia Mining & plus one other on 5th May starting 6pm.

[stemis] 09/4/2020 07:52

Decent first quarter and encouraging comments about the current level of production.

[sailing john] 18/3/2020 08:13

Stunning as expected. Positive outlook. A safish haven in difficult times.

[stemis] 18/3/2020 07:50

Stonking results from CMCL, both financially and operationally. All set now for a step change in profits from 2021 onwards and yet still on a P/E of 5.5, dividend yield of 3.8% with cash in the bank. Quality outfit.

[stemis] 16/3/2020 08:50

With gold price at $1540/oz CMCL should be relatively unaffected by the current crisis, but shares suffering from 'sell everything' sentiment and maybe people cashing in profits to take advantage of bargains to come in general market?

[troajan1] 18/2/2020 06:34

Caledonia Mining sets stage for next decade with Blanket gold mine expansion HTTP://twitter.com/TradingStockAIM/status/1229655294189490178

[338] 14/2/2020 08:04

$10.16 in USA or 778p due to strengthening £/$ rate... expecting volatile share price today

[338] 11/2/2020 16:38

hxxp://news.goldseek.com/GoldSeek/1581435213.php Eventually the market will discover the junior exploration stocks and the share prices will be off to the races. This is part of the reason Eric Sprott continues to invest aggressively in the companies he considers to have the highest probability of getting enough “wood on the ball to knock the ball out of the park” (sorry, baseball is right around the corner). Precious metals mining stocks are exceptionally cheap relative to the price of gold (and silver). Many of the junior exploration stocks have sold down to historically cheap levels in the latest pullback in the sector. As such, this is a good opportunity to add to existing positions in these names or to start a new position. - Dave Kranzler

[338] 10/2/2020 08:10

$10.98 in USA or 852p

[338] 07/2/2020 14:50

$10.26 in USA or 815p ... :)

[338] 06/2/2020 14:48

$10.44 in USA or 805p ... :)