Caledonia Mining Share Discussion Threads

[lucky_punter] 07/12/2011 07:10

An upbeat Stefan Hayden is determined to build on the recent success of Caledonia Mining (LON:CMCL,TSE:CAL, OTCBB:CALVF) by becoming one of the pace-setters in Zimbabwe's race towards indigenisation.

The company's chief executive said he is a "big supporter" of this programme and confirmed he is keen to engage with the authorities as "quickly as is practicable".

[ceohunter] 25/11/2011 12:03

The directors of Caledonia Mining (AIM: CMCL), Anglesey Mining (LSE: AYM), EurOmax Resources (TSX-V: EOX) and Lansdowne Oil & Gas (AIM: LOGP) will be presenting in London on:

Thursday the 8th December 2011

Venue: Chesterfield Mayfair Hotel, 35 Charles Street, Mayfair, W1J 5EB (Charles Suite)

The presentations will start at 6:00pm and finish at approx 8:00pm. After the presentations are complete the directors will also be available to take questions during a free canapé and wine reception.

REGISTER YOUR ATTENDANCE HERE:

[jermaine77] 22/11/2011 17:58

I think that is a pretty naive and feeble justification of a long position here.

Zim stocks deserve a discount anyway but miners in general especially ones with limited mine life deserve a much lower rating than a PE of 6-8 !

I'd suggest a PE of 2-3x is about right.

CMCL looks very expensive versus MWA it's fellow Zim gold miner.

CMCL Mkt Cap is £33m producing 40k oz p.a. with a 10 year mine-life ?

MWA Mkt Cap is £29m producing 50k oz p.a. (with potential near term growth to 70k oz p.a.) with a 20 year+ mine life

In addition Mwana has been spending of the order of $10m p.a. on Exploration on it's Gold project in DRC and JV concessions for Base Metals with Anglo in DRC and also owns a Nickel mine,smelter and refinery in Zimbabwe with a Glencore offtake agreement in place.

[drdre] 15/11/2011 16:28

Fantastic results, current P/E of just under 3 based on FY earnings of 2.8p (1.13 cents for Q3 = 0.7p x 4) and I echo what Chip said - the Management and team on the ground have done fantastic work. 10 year mine life with possibility of extending that. Management overview was also very positive, with costs per ounce under $600. $6.8m cash in the kitty should cover exploration and other overheads going forward.

Still risks around indiginisatation and the overall political situation but the company seems well received by the community and the Zim government, so fingers crossed.

Regardlesss, the rating is surely too low and a PE of 6-8 would still reflect the political risk AND fairly re-rate based on performance. That would give a share price of 16p - 21p.

All IMHO, GL all.

DR

[jermaine77] 11/11/2011 09:33

you are entitled to do what you want but i don't think this is a market to be following things which have already moved based on historic results

the perceptive investor will position themselves in the next one to move

[kinghorm23] 11/11/2011 09:28

Yeah but Cmcl have delivered the profits, Mwa last results show a large
loss so they have to confirm the numbers.

Cmcl big jump in profits and cash generation and no debt.

I will stick with this one thanks.

[jermaine77] 11/11/2011 09:26

MWA is way cheaper mate on a like for like basis if you can stomach Zim 'risk'

MWA £30m Mkt Cap producing 50k and aiming to produce 70k p.a.
CMCL £34m Mkt Cap producing 40k

MWA also have

1m+ oz explo project in DRC
Copper targets in JV with Anglo in DRC
Nickel mine and smelter with Glencore offtake currently mothballed but due to come back online

[kinghorm23] 11/11/2011 09:17

Dead today, a mm actually went on the bid on a 3k buy the only trade today.

5 v 1 on L2, only one mm offering under 8p, rest are 9p offer.

[lucky_punter] 11/11/2011 07:32

Caledonia Mining (LON:CMCL) chief executive Stefan Hayden said he is confident his team can maintain the Blanket mine's current 40,000 ounce a year run rate.
The group's shares shot up around 40 per cent today as it revealed a very strong third quarter results. Gold production from the Blanket mine in Zimbabwe rose 18 per from the previous quarter. It produced 9,743 ounces in the three month period.

[kinghorm23] 10/11/2011 17:33

All i can say is there any stock on Aim that is safe, does making a Aim
stock trade in Zimbabwe more risky than all the others, given all the delistings
and companies going bust i would say it's just as risky as the next one.

Per of 3, fair is 5-10 which is 10-20p

[jermaine77] 10/11/2011 17:02

Roger Bade @ Libertas on CMCL

Q3 results for the Zimbabwean gold miner are good with revenues, operating profits, pre-tax profits, post-tax profits earnings per share and cash flow from operations up 37.5%, 190%, 122%, 119.6%, 109.2% and 87.5% respectively. For the record annualised return on equity is a very healthy 68.4%. Cash at the bank leapt $5.7m to $6.85m in the quarter

With C$0.0201 per share (/share) in earnings for the nine months, and $0.0113 in the quarter, they should earn around $0.0315/share for the full year. With a share price of $0.095 they trade at a prospective multiple of just over 3 times. This is probably appropriate for Zimbabwe risk.

Paying a dividend at the moment might not be a good plan, particularly as their indigenisation plans have not been finalised, but they have the warewithal to do so. If they paid out 50% of earnings they would trade at a near 15% dividend yield.

[kinghorm23] 10/11/2011 15:38

lol

Classic Wins are they reading this !

57k buy 8.5p, they go 7.25p, 17k sale 7.5p they drop, they are short
of stock shaky shaky wins

[kinghorm23] 10/11/2011 15:29

57k buy plus at 8.5p took by wins and they go 7.25p bid lol greedy !

[kinghorm23] 10/11/2011 15:15

Some burke mentioned Zimbabwe as a reason not to invest !

Fair enough at first thought but think of the Tax they WONT receive
if they stopped this company making money so there no issue there.

Looks a bargain, traders have already moved on, buy and hold for
double figures.

[lucky_punter] 10/11/2011 11:49

Caledonia Mining (LON:CMCL) shares soared over 40 per cent this morning after it revealed a greater profit in the third quarter than it achieved in the whole of the first six months.
Gold production from the Blanket mine in Zimbabwe rose 18 per from the previous quarter. It produced 9,743 ounces in the three month period. Gold prices were 15 per cent higher than the previous quarter too.

[garbut] 10/11/2011 11:39

CMCL!!!go
Starting its move up again.

[chipperfrd] 10/11/2011 11:30

Hi H,

Unlike many small-cap stocks in the gold space this one does actually deserve a large price uplift. But I expect there will be more focus on the price movement than on the underlying fundamentals that produced it - such is the way of this market!
Chip

[hectorp] 10/11/2011 11:21

Will wait for the spike in price to come under the control of gravity!

[chipperfrd] 10/11/2011 11:20

Excellent results from the Blanket mine. It remains on an exceptionally low market multiple, even if it is in Zimbabwe!

Well done to the CMCL team for plugging away in a very difficult political environment.
Chip

[moreforus] 10/11/2011 09:15

fantastic dream rns

[andrbea] 10/11/2011 08:59

a low cost mine that can produce 'sustainably' (i.e. it's not goonna run out of gold...)

Commenting on these results, Stefan Hayden, President and Chief Executive Officer said: "Caledonia has had, as forecast, a very strong performance for the third quarter and profits for the third quarter of 2011 exceeded profits for the entire first half of 2011.

The increase in profit was primarily achieved due to the 18% increase in gold production and the 15% increase in the average price of gold sold compared to the second quarter of 2011.

The Blanket Mine in Zimbabwe achieved its target annualised production level of 40,000 ounces of gold for the last two months of the third quarter and this level of production was sustained in October. The increase in production was achieved following the completion of work to address the remaining constraints to underground production and included the commissioning of a new ore pass at the end of July, which substantially improved the efficiency of underground operations and reduced ore handling costs. We expect that Blanket Mine will operate sustainably at this level of production.

Cash costs at the Blanket Mine fell to US$583/oz. from US$585/oz. in the preceding quarter. The cost per ounce of labour and electricity was lower than the previous quarter as these are largely fixed costs and were amortised over the higher production. The cost per ounce of consumables increased due to the expected normalisation in the head grade which was reflected in a 40% increase in the tonnes of ore processed and an 18% increase in gold production. Overall, however, the cost per tonne of ore mined and processed fell due to improved underground operating efficiency and recent investments in the milling and CIL circuits which have reduced consumable usage and increased recoveries. Blanket's cash costs remain highly competitive compared with other gold producers, not only in Zimbabwe, but also in the rest of Africa.

[moreforus] 10/11/2011 08:57

fantastic results

does anyone own em!!

[ceohunter] 07/11/2011 11:43

The directors of Caledonia Mining (AIM: CMCL), Anglesey Mining (LSE: AYM), EurOmax Resources (TSX-V: EOX) and Lansdowne Oil & Gas (AIM: LOGP) will be presenting in London on:

Thursday 8th December 2011

Venue: Chesterfield Mayfair Hotel, 35 Charles Street, Mayfair, W1J 5EB (Charles Suite)

The presentations will start at 6:00pm and finish at approx 8:00pm. After the presentations are complete the directors will also be available to take questions during a free canapé and wine reception.

REGISTER YOUR ATTENDANCE HERE: