Caledonia Mining Share Discussion Threads

[melody9999] 19/4/2021 09:50

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 19:06

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

[stemis] 07/4/2021 00:17

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 08:02

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

[tightfist] 22/3/2021 07:58

Said it again this morning - now only 9 days to go....

[fredfishcake] 17/3/2021 08:18

Today's RNS signs off with "come at an exciting time for the Company with the commissioning of Central Shaft due to be completed in the first quarter of this year." I'm sure if there was going to be a delay this wouldn't have been said.

[tightfist] 17/3/2021 08:06

Makes one wonder if it's associated with the GDXJ index inclusion RNS this morning? I wonder when Van Eck announced the imminent rebalancing - I went looking and found multiple references to 12 March but nor sure it was relevant to CMCL.

[stemis] 15/3/2021 21:56

Well they expected commissioning of the central shaft in Q1 2021 and there's only 16 days left. Generally they deliver...

[ntv] 15/3/2021 20:18

large volume in states today
Some news must be due pretty soon

[melloteam] 11/3/2021 15:07

Just to let shareholders and prospective investors know that Caledonia Mining will be presenting at Mello Tuesday Investing in Gold and Mining webinar event on Tuesday 16th March at 6pm-9:30pm. Use code MTGold70 for 70% off!
The webinar will include how to invest in Gold & Mining, covering everything from buying gold coins and bars through to stakes in gold producers paying regular dividends. We will also cover ETFs, gold indexes, gold exploration & mining companies and investment funds, featuring a number of presentations. The webinar will provide a broad range with a panel session to cover all these options and assessing the risks and opportunities now open to investors. We have a fantastic line up of company presentations from Condor Gold, Taseko Mining and Caledonia Mining.

[melloteam] 08/3/2021 14:25

Just to let shareholders and prospective investors know that following the popularity of the first #MelloTuesday, Investing in Gold event, we are delighted to announce that we are running a follow up event, Investing in Gold and Mining on Tuesday 16th March at 6pm-9:30pm. Use code MTGold70 for 70% off tickets!
The webinar will include how to invest in Gold & Mining, covering everything from buying gold coins and bars through to stakes in gold producers paying regular dividends. We will also cover ETFs, gold indexes, gold exploration & mining companies and investment funds, featuring a number of presentations. The webinar will provide a broad range with a panel session to cover all these options and assessing the risks and opportunities now open to investors. We have a fantastic line up of company presentations from Pure Gold, Condor Gold, Taseko Mining and Caledonia Mining.

[tomps2] 26/2/2021 10:22

Caledonia Mining (CMCL) Spoken about in a piworld interview with Edmund Shing; Mr Shing’s thoughts from 12:35.
Watch the video at:
Or listen to the podcast using the following link:

[stemis] 25/2/2021 09:21

I don't think that's an unfair analysis. Gold is the best way Zim have of generating the foreign currency it desperately needs, followed by opening the country up to foreign investment. Screwing over those gold miners who have invested in the country really isn't going to help either.

CML have always operated prudently and in a low risk fashion so I really can't see them taking a flyer on some high cost, speculative venture.

They dealt well with Zim's forex and covid issues over the last couple of years and one senses they are quite well connected in the Zim government. These guys know how to run a mine.

[mikkydhu] 25/2/2021 06:52

CALEDONIA: THE FUTURE

Caledonia Mining intends to be big:

* New shaft will enable (2022) 80,000 ounces of gold pa
* Any new mine they build must be able to produce at least 60,000
ounces pa, so they have said.
*2 new properties being explored. If both measure up, will yield
120,000 ounces pa. (talk of a new “gold camp”)
*Total (Blanket + 2 new mines): 200,000 ounces pa.

Is it reasonable to expect Caledonia to discover two properties able to produce at least 60,000 ounces pa each?

Before 1980, Zimbabwe was Africa’s third biggest gold producer, after South Africa and Ghana. But because of the unfavourable situation in Zimbabwe, its gold occurrences had not been explored and exploited for many decades. On 7th Oct 2020 Mark Learmonth said of Zimbabwe’s gold occurrences, “They have resource potential of millions of ounces, anything between 4 and 8 million ounces, which is world class, world scale stuff.” Caledonia have chosen 2 out of 24 possible properties to explore. The chances of these skilled miners finding 2 qualifying properties (60,000 ounces pa) must be good.

RISKY? How risky is it to invest in Caledonia? Consider this: In October last year Caledonia signed an NDA with the Government of Zimbabwe to investigate some of their gold properties and come up with a mutually beneficial transaction. Mark Learmonth said the Zim Govt made much of the signing. It was ceremonial and televised. His view is that the Government wanted to do something to revive the economy and wanted to be seen to be doing it. “They seem to have come to the recognition that they can’t provide all the answers and they need to reach out to people like Caledonia who have demonstrably got the expertise in country: we’ve been running a very successful gold mine there for 10 or 12 years now and we’ve invested for growth.”
I find all this somewhat reassuring, and look forward to hearing of a deal to explore a gold asset with the Government of Zimbabwe.

COST of all this expansion:
Cost of exploring a property: a million dollars, “insignificant” (Mark L)
Cost of buying a property: $5 million, “insignificant” (Mark L.)
On 11th Dec Mark Learmonth said, “We wouldn’t start to build the mine (Glen Hume) for another 2 or 3 years, by which time we’ll be generating between 45 and 50 million dollars a year from Blanket.
Initially it would be an open cast operation, much cheaper than a deep level mine. So we’re comfortable we can turn this to account without interrupting our dividend stream.”

Of course, we haven’t had a single drill result yet, so we mustn’t get ahead of ourselves. But it is interesting to speculate in the light of what the company themselves have said.