Caledonia Mining Share Discussion Threads

[melody9999] 08/5/2021 23:17

Stemis - agreed - the new shaft will allow them to explore deeper and further which should help increase resource

[mikkydhu] 28/4/2021 09:33

Among those who do trust the company and its management are some leading Zimbabweans who were present to support the company on 6th October, 2020, at the signing of the MOU between the company and the Govt of Zimbabwe regarding a possible agreement around some government owned gold assets.

They included the following:
H.E. Emmerson Mnangagwa, President of Zimbabwe
Constantino Chiwenga, Vice President of Zimbabwe
Winston Chitando, Minister of Mines
Polite Kambamura, Deputy Minister of Mines
Onesimo Moyo, Permanent Secretary for Mines

Onesimo Moyo said, "This signing is a sign of trust of confidence in our economy."
The President said, "My government stands ready to support..."

Trust is a two-way thing: The company trusted the Government of Zimbabwe sufficiently to invest over $65 million in the new shaft and the Government of Zimbabwe has reciprocated by trusting the company to investigate its gold assets.

I am prepared to trust both parties.

[338] 27/4/2021 15:09

$100m is going to be used to develop new mining site in the next 36 months, I guess... They registered it yesterday buy not officially sold?

[stemis] 27/4/2021 12:05

I think they've specifically said they are not going to invest in blue-sky-high risk projects.

CMCL has two issues (IMO) which occasionally act to depress the share price.

1. Country risk - they are 100% in Zimbabwe. All one can say about this is that they managed pretty well so far. I suspect they are 'quite' well connected and Zim has an obviously motivation for keeping miners sweet, but it's inherently a volatile situation.

2. Resources - they don't have huge declared M&I; only 805k oz at July 2018, when they've produced about 160k since. Truth is, there's plenty more gold down there. They just haven't defined it.

[drradcliffe] 27/4/2021 11:32

I've met the management, albeit a few years ago now, when I invested much more heavily in gold miners. I thought they were straight, and that view is pretty widely held amongst those that are serious about investing in this sector. I really don't think there's an issue of trust in the management. Any new projects, who knows.

[dozey3] 27/4/2021 09:35

The sustained weakness in SP, even after the successful central shaft development, is worrying. It suggests the market is yet to be assured that shareholders are going to get their just rewards, and that management are not trusted. Are they going to invest most of the cash being thrown off in new blue-sky high-risk projects? I fear so.

[drradcliffe] 27/4/2021 09:17

hxxps://www.sec.gov/Archives/edgar/data/766011/000117184321002746/0001171843-21-002746-index.htm

It looks like they are registering the right to raise $100m through the US markets using a mix of ordinary shares, preferences and warrants IN FUTURE. If it was a capital raise now, which would mean dilution of existing holders, they would also have to announce in the UK through RNS. So, I believe this could be a US market SEC technicality for now. The real question is why would a cash generative business like Caledonia Mining need the money. What are they planning to acquire?

[stemis] 27/4/2021 07:42

Where did you get that from?

[ntv] 26/4/2021 17:11

Announcement in the US re some sort of capital raise $100m

[mikkydhu] 26/4/2021 14:01

Thanks, 338, useful to see CMCL's production for the quarter in a wider context.

[melody9999] 19/4/2021 08:50

Q1 production lower as expected - I am wondering whether that is all the not so good news out of the way now?

[mikkydhu] 13/4/2021 18:06

On the website there is now a 41 second video, without commentary, showing the first skip being tipped at the Central Shaft.

[stemis] 06/4/2021 23:17

The dividend increase is welcome, certainly. However at this level the cost is only $6m pa and CMCL is going to generating cashflow of $30-40m pa in the not too distance future so I don't think this is going to be the end of it.

[338] 06/4/2021 07:02

Very good news

[338] 26/3/2021 15:01

Two ecpected news next week

1. Commissioning of the central shaft

2. Increase dividend to USD 12.5c quarterly will be nice

[mikkydhu] 26/3/2021 09:12

In a recent Directors Talk interview Mark Learmonth, CFO, was asked what news investors should look out for in the coming weeks and months. One of the things he mentioned was the next dividend announcement in early April. I don't think he would have drawn attention to it unless they intended to increase it yet again.They do emphasise their policy of progressively returning cash to shareholders. Perhaps one day it will do something for the share price.

[ga_dti] 25/3/2021 08:53

Written Q&A for the latest DT interview with Steve Curtis discussing Q4 financial highlights, why 2020 was transformational for the company, their response to COVID and what we can expect from them over the coming months:

[mikkydhu] 23/3/2021 09:47

There's a new presentation on their website. Go to Media, Corporate videos and Financial Review. Both CEO and CFO present. It's a very comprehensive and upbeat account of the company.

[stemis] 22/3/2021 22:33

Anyone who wants to wade through the figures in more detail, it's all here

hxxps://wp-caledoniamining-2020.s3.eu-west-2.amazonaws.com/media/2021/03/22070056/CMCL-MDA-Dec31-2020-FINAL.pdf

I guess the share price fall reflects the weakening in the gold price which pretty much (save the 5% royalty) falls straight through the Caledonia's bottom line.

Quite a few one off's in the results; exchange, price support, covid costs and impairments. Then of course there are minority interests. Best I can see is that our share of ebitda is around $36m putting the valuation at about 4.8 x ebitda. Next year our share of ebitda is projected at up to 24% higher. Once we get to 80,000 next year however it should be at least 50% higher even without margin enhancement.

[mikkydhu] 22/3/2021 21:19

Perhaps the summer peak wasn't fully justified.

But now, with the prospect of no debt, no dilution, less capex and more gold, the next peak will be really justified.

[ntv] 22/3/2021 20:10

now halved (US ) from summer peak. Is that really justified?

[3800] 22/3/2021 19:22

reading the reports and accounts management cannot be accused of understating risk the only thing they seem to have left off is asteroid collision with the earth. I'm pleased with the results anyway and am continueing to hold

[ntv] 22/3/2021 19:03

once the central shaft is up and working. they should be able to increase the annual dividend to $1 ,no problem