Caledonia Mining Share Discussion Threads

[buffetcharliemtesque] 07/10/2022 07:16

So the company has nothing to do with the share price Dozey?

[dozey3] 07/10/2022 03:17

The share price reflects political and economic uncertainties not only on Zimbabwe, or even the African continent, but world wide. Can’t see an upturn here but just enjoy the dividend. Not for widows and orphans.

[daz] 06/10/2022 20:56

A forecast forward P/E of around 4 leaves plenty of room on the upside but it seems to have been that way for a while

[stemis] 05/10/2022 23:04

Yield 5.7%, production at top end of forecast and

Caledonia will restart the oxides operation at Bilboes under the terms of a tribute arrangement with a view to creating a cash-generative operation within approximately six months.

Will be interesting to see the contribution Bilboes can make.

Operationally everything seems to be going well, even if the share price doesn't reflect it...

[sailing john] 12/8/2022 06:50

Thanks for the link. I was quietly adding yesterday!
GL SJ

[mikkydhu] 11/8/2022 21:38

Thank you, meanreverter.

Such an interesting account of the company's thinking, progress and discipline, and, in particular, of Mark Learmonth's approach to managing the company and working in Zimbabwe.

[meanreverter] 11/8/2022 19:59

One of the best interviews ever with Mark:

[pj84] 11/8/2022 18:13

Surprised no comment on very good results for the 2nd quarter.

[mikkydhu] 08/8/2022 14:54

"Massive new mill"

On July 21st Mark Learmonth was interviewed by Jochen Staiger of Commodity TV. One interesting point he made was this: "we are building up a modest stockpile of ore which we will eat into when we increase our milling capacity in the next three or four weeks. We've got a massive new mill which is in the process of being commissioned."

This suggests more than just a little extra gold production in the near future. Recently the company said "Management believes there is excellent exploration potential at Blanket at depth, in the old shallower areas of the mine and in brownfield sites immediately adjacent to the existing Blanket footprint."

Perhaps the existing annual production target will be raised before year end.

[robizm] 30/7/2022 20:43

Re electricity they can go down the solar route. A lot of miners (paf and ths) are doing this. Cheaper on costs and cleaner than diesel

[stemis] 25/7/2022 21:37

I think the fact that they've been looking at this for 6 years is further indication that they are not going to overpay. I know they are very interested in another property, but again it's about get the right deal for shareholders. Getting Gapare on board as a major shareholder/director is a big plus for doing deals in a prospective country which is under exploited. They got Maligreen by virtue of having resource on the ground and capital against others which didn't.

[leopoldalcox] 25/7/2022 17:35

Thank you for sharing

[mikkydhu] 25/7/2022 14:26

In this interview Mark Learmonth goes briefly into the history of the acquiring of Bilboes. Strikingly, Caledonia has been looking at this project since 2016. Initially, they made an offer to acquire Bilboes that was not accepted. Bilboes looked at other options before coming back to Caledonia. So Bilboes were looking for a buyer. Perhaps they were looking for a miner whom they could rely on to make a success of Bilboes. I suspect that central to this whole project is Victor Gapare, who is a significant figure in mining in Zimbabwe, and I think is well connected with the government. He is the chief shareholder in Bilboes. In the deal he will have the single largest shareholding in CMCL and become a director on a handsome salary. So it is a win/win deal: Mr Gapare secures a miner whom he can trust to make a success of his mining interest (Bilboes), and CMCL obtain an influential advocate who can secure for the company the electricity they need and the beneficial arrangements for selling the gold.

Mark expects to tie up the conditions precedent by the end of the year.

The interview also covers possible phasing of Bilboes and funding routes forward in very broad outline. It is worth hearing Mark's approach to making acquisitions and developing them.

[ntv] 23/7/2022 12:36

The acquisition has a couple of major stumbling blocks. Constant electricity supply and that Calendonia wants to keep 100% of it's dollar earnings

[mikkydhu] 22/7/2022 14:57

A favourable write up from IC.

[mikkydhu] 21/7/2022 14:18

Additional information about the project.

[leopoldalcox] 21/7/2022 10:45

I was considering a top up at this price, and considering the news today, which I think provides a lot of upside, I've added. If they can spin up the operation again in the timeline they have set out, this could revolutionise the company, massively increasing production whilst diversifying the production at the same time

[3800] 21/7/2022 08:36

seems a lot to pay for company loosing money I hope they know what they are doing

[leopoldalcox] 21/7/2022 08:15

What would your theory be NTV? Can't say I have an opinion on that

[ntv] 21/7/2022 08:07

I mentioned this asset sometime ago as a potential acquisition
Obviously this has taken sometime to sort
The big question for me is why did they waste monies on all the other pointless acquisitions?
You can make your own mind up

[leopoldalcox] 21/7/2022 08:07

Very significant rns this morning. Looks transformative, not a small investment

[mikkydhu] 18/7/2022 22:26

Future news to look out for:

* Solar Farm coming on stream and plans for extending it.
* Increased confidence in gold resources at Maligreen.
* Commissioning of new ball mill.
* Possible project acquisitions/ joint ventures with Govt of Zimbabwe.

[ntv] 16/7/2022 10:46

What should keep the directors at night is the way they have squandered shareholders monies over the last couple of years
Yes they did got the extension built at cost saying they had done that without recourse to share holders .then subsequently raise 2 lots of cash
Cash balances are no better in real terms after the 2 cash calls monies have been wasted pointless unproven assets
I wish some one would just take them out

[melody9999] 14/7/2022 11:22

I asked CMCL about the effect of inflation in Zimbabwe. Received a comforting response very quickly as below:

The significant majority of our business expenses and revenues are denominated in US Dollars so high domestic inflation in Zimbabwe does not substantially affect us. To the extent that we do source locally priced goods and services the inflation remains a concern but we are quite proficient at substituting with imported goods if domestic prices are too high. Our worker salaries are 100% US dollar based so the domestic inflation is not an issue for this cost, moreover it is very good for worker morale that we pay them in USD. We are seeing some USD inflationary pressure in line with global inflation but nothing unusual by international standards and when compared to the domestic currency inflation. In the long term, high inflation is bad for macroeconomic stability so we do pay attention to it but it doesn’t keep us awake at night.