Caledonia Mining Share Discussion Threads

[stemis] 22/7/2020 16:53

Remember, at 80,000 oz per annum, a gold price of $1850 and an all in sustaining cost of $800-700, this will be knocking out an ebitda of about $80-92m. Current mkt cap at 1700p is $250m. Even if they decide to pay just a third out as dividend, that's a yield of 11-12%. Not sure what they'd do with the rest. It's not like there's any debt to pay down...

[ntv] 22/7/2020 16:17

and here comes the big dipper.
what a roller coaster ride it is

[ntv] 22/7/2020 15:50

That is equal to £19

[sailing john] 22/7/2020 15:35

Up another 12% in US to 24.3 mid

[stemis] 22/7/2020 10:59

I thought they'd get to £20 when the main shaft was fully operating and production reached 80,000 oz. The way it's going, we might get there a lot earlier !!

[ntv] 22/7/2020 08:12

Comparing the price in the Uk to the price in the states, There is still over a pound difference for some reason

[kazoom] 21/7/2020 22:09

Nice one Stemis.

Personally I am kicking myself - saw them present at Mello a few days ago; thought their investment case was compelling, but that I ought to look in more detail.
Hadn't got there yet and then TODAY!

[skiski] 21/7/2020 21:35

All physical & mining gold/silver stocks going up. There is going to be currency restructuring and probable currency backed by precious metals worldwide. DYOR

[sailing john] 21/7/2020 16:19

US up another 6% to 21.65 mid.

[fredfishcake] 21/7/2020 15:15

You da man - I owe you a pint or seven!

[stemis] 21/7/2020 14:48

I think it would be me. I bought in May 2012 for equivalent of 235p and posted a review in Paulypilot's Pub on TMF.

[fredfishcake] 21/7/2020 14:34

First bought these in 2012 as the result of someone's research published on the old MF Paulypilot's Pub. Unfortunately I can't remember who it was, but my thanks to whoever it was - have bought several times since, but so far have tripled my investment. Not bad for a Zimbabwe company!

[ntv] 21/7/2020 09:48

US closing price equals over £16 so why is this so low in comparison

[sailing john] 21/7/2020 07:35

US close +6.7% at 20.4
Gold still going the right way. 1820

[stemis] 17/7/2020 14:18

Yes, very good presentation. They are a very prudent, nuts and bolts management with good shareholder communication. I'm sure if they decide to acquire further assets it'll be low risk.

[mikkydhu] 17/7/2020 10:20

Many thanks, tightfist.

I've listened to the presentation once and will listen again. It is a great story. Just look at the projection over the next 12 months of costs plunging and cash soaring.
I find the management most impressive. They answer many questions with a series of clearly articulated points. Everything is well thought out and works. The bar chart showing the reserves increasing, not decreasing as you might expect, year after year. Most impressive. And this process, of adding to reserves, will gather pace once they start drilling from underground positions accessed via the new shaft... All good stuff.

[mikkydhu] 17/7/2020 09:02

skiski,

The answer is "Yes". My post 598 marks Zimbabwe as being the third largest gold producer in Africa (after SA and Ghana)a few decades ago. A quick search on Google will tell you straight away Zimbabwe has massive amounts of gold. Of course, this gold is not technically "reserves" until deposits have been drilled to the correct standard and found to be economically mineable. But the expectation is that a lot of the gold would be economic to mine.

[ntv] 17/7/2020 07:55

Last nights closing price in the states was $19.18
based on the $/£ rate of approx of $1.26/£ that equates to a share price of £15.20
Why such a discrepancy ??!!

[skiski] 17/7/2020 01:57

Isn’t Zimbabwe sitting on a large amount of the worlds Gold Reserves... genuine question?

[mikkydhu] 16/7/2020 12:04

Thank you for the information, Aim_Trader.

I hope the presentation leads to more investors taking an interest in Caledonian over here. Yesterday over 163,000 shares were traded in the US, but only a paltry 6,759 here.

[aim_trader] 16/7/2020 09:20

Caledonia mining is presenting at tonight's Proactive One2One Virtual Forum. Details and registration here:

[mikkydhu] 14/7/2020 12:07

One consequence of the company's gradual approach to expansion is more cash from the Blanket Mine available for dividends.

[mikkydhu] 14/7/2020 09:22

Thank you, tightfist.

I wasn’t able to find an easy way to access Mark Learmonth (Caledonia’s CFO) on Virtual Mello, so I went to Caledonia Mining’s website to see if I could find his interview there. I couldn’t; but I was able to see a video presentation by Mark given just after the Q1 results. Here is a nearly verbatim transcript of what he said on the question of the company’s thinking on possible future acquisitions and growth within Zimbabwe. It seems well thought out and he communicates it well.

“We must have looked at two dozen opportunities within Zimbabwe. Let’s not forget that 30 or 40 years ago Zimbabwe was Africa’s third biggest gold producer behind South Africa and Ghana. And geologically it is a very prospective area for gold. It just hasn’t been explored or commercialised over the last several decades for obvious reasons. So we think it’s a great jurisdiction.
Of those two dozen opportunities we’ve narrowed it down to four or five that we really like. None of these are large scale producing operations, so we’re not for a minute thinking of splashing out many, many tens of millions of dollars to buy some asset that’s been run into the ground and would need a huge amount of money to recapitalize it. So that’s not our focus. Let’s be clear about that. We’re looking at brownfield properties where there has been work done, perhaps many decades ago, and that work needs to be refreshed. It needs to be built upon. But typically we’ll be looking at things where we’ll get our hands on the asset for two, three, four million dollars, and over the course of a year or so, maybe two years, spend another couple of million dollars to drill and prove up the resource base, and then take it from there. So the idea is to redeploy some, but not all, of the cash that we generate from Blanket to build out a growth pipeline which will take us forwards for the next decades. But very clearly we don’t intend to blow all the money that’s coming out of Blanket on a big high-risk acquisition in Zimbabwe. So it’s much more gradual.”