Caledonia Mining Share Discussion Threads

[puku] 31/8/2012 12:00

excellent interims eps 2.5 c and that is after paying its obligations under its indigenisation agreement. A forward p/e of less than 2 and Zambian project looks promising. I want more.

[stemis] 22/8/2012 09:19

Brief update from Edison



Caledonia has released impressive Q212 operational results. In Q212 the Blanket Gold Mine produced a 26% increase in gold to 11,560ozs (vs 9,164ozs in Q112) at cash costs of US$547/oz (vs US$648/oz in Q112), translating to a gross profit of US$10.067m (at an average realised gold price of US$1,599/oz). Net cash flow from operations also saw a marked increase of 91.2%, from US$7.346m to US$11.195m (before capex). Gold production July 2012 was approximately 4,700ozs (already 40.7% of the Q212 total). Caledonia had cash at end June 2012 of US$18.323m.

Also notes

The initial 2,400m drill programme at Caledonia's Nama Base Metals Project in Zambia has been extended due to the discovery of a large (c 1300m x 21m x 900m) mineralised body carrying an estimated weighted average copper grade of 0.52%. For illustrative purposes only, this could equate to around 300kt of contained copper. This discovery crops out at surface and remains open at depth and to the west.

[lucky_punter] 10/8/2012 07:33

Shares in Caledonia Mining Corporation (LON:CMCL, TSE: CAL) rose 7 per cent this morning following some cautiously optimistic drill results from its Nama base metal project in Zambia.

[lucky_punter] 10/8/2012 07:31

Caledonia Mining Corporation (LON:CMCL, TSE: CAL) gave cause for cautious optimism as it unveiled drill results from its Nama base metal project in Zambia.
A total of 13 of the 18 holes drilled so far have intersected copper at an average weighted grade of 0.52 per cent over 1,300 metres.

[stemis] 07/8/2012 08:29

Should get half year and second quarter update on Monday

[stemis] 25/7/2012 13:40

Write up on Motley Fool

[texmex85] 21/5/2012 12:46

A solid company with a good track record..

[stemis] 16/5/2012 14:29

Interestingly it's the sell price falling which has caused the tick down in mid price. It's still 4.74p to buy but only lots of 37,500 available.

[stemis] 16/5/2012 13:30

DrDre,

Yes I know. However CMCL will stick earn the benefit of 100% of Blanket until the loans funding indigenisation are paid off.

[aim_trader] 15/5/2012 10:15

ZincOx, Caledonia Mining, ECR Minerals and New Guinea Energy Energy to present at One2One Forum
We are back in familiar territory after a hugely entertaining non-resources event last week. Joining us at the Chesterfield Hotel on Thursday (May 17) will be ZincOx (LON:ZOX), Caledonia Mining (LON:CMCL), ECR Minerals (LON:ECR) and New Guinea Energy Energy (ASX:NGE).

[humbugg] 12/5/2012 11:41

still looks very cheap to me. nice quiet thread without the usual P&D merchants.

[drdre] 11/5/2012 14:34

Hi SteMis,

I was basing it on what remains to CMCL, if that makes sense. CMCL only own 49% of that $59m.

[stemis] 11/5/2012 14:19

The sale of 51% generates $30, which values the remaining stake based on the transaction at around the current cap.

The sale values Blanket mine at $59m which is 154% of current market cap, then there is the cash on top.

[drdre] 11/5/2012 13:47

The sale of 51% generates $30, which values the remaining stake based on the transaction at around the current cap.

That is based on a static asset sale with no recurring revenues.

EPS for Q1 is around 0.85p on 9164 ounces. Based on hitting 40k ounces, EPS would be around 3.7p for the full year. That does no include the one-off payments from the Indiginisation process. This may be conservative though given:

"The increase in cash costs was due to certain anticipated non-recurring costs and the lower gold production during the Quarter."

The company can also fund all development internally from cashflow:

"Corporation had cash and cash equivalents of $16,288,000"

"Blanket will fund all of its immediate investment requirements from its internally generated cash, both at the satellite projects and the down-dip exploration at Blanket Mine. Depending on the outcome of these projects, Blanket may, in due course, be able to increase production above 40,000 ounces of gold per annum. The Blanket crushing and metallurgical plant has surplus capacity and any incremental ore could be treated without any requirement for new investment."

The main risks here are obviously country risk and perception of a short minelife. The first, I would hope, is being assuaged by the Indiginisation process. The second will only be adressed by further exploration of Blanket and the satellite deposits. However, from their recent presentation, they have 467k ounces of P&P reserves which support a 14 year mine life:



"Reserves and Resources above 750m supports 14 years production at 40koz per annum
– Existing mine plan gives ample time for further exploration and development with uninterrupted production
• Expected that resources will increase as a result of on-going exploration over the next 24-36 months

Throughput of 1,800tpd would result in 70,000oz per annum of gold production"

I therefore assume the discount is purely down to country risk.

However, on a historic P/E of 3 and a forward PE for the current year of just over 1 (or 2 if you allocate 49% of earnings to CMCL going forward due to the MoU), this has to be a buy surely? I do not hold as I bought and sold last year as the share price just drifted. What are others' thoughts?

I would love to buy back in but the lack of share price reflecting the figures makes me hesitant.

[stemis] 11/5/2012 13:24

I don't quite understand why this stock is so cheap. 44% of market cap is covered by cash; the balance equates to about 7 months ebitda. In that respect the indigenisation at the Blanket Mine is somewhat irrelevant.

One day soon Mugabe will die and Zimbabwe will come back in from the cold.

The share should surely be at least treble the current level?

[ceohunter] 01/5/2012 11:11

The directors of ZincOx Resources (AIM: ZOX), Caledonia Mining (AIM: CMCL), ECR Minerals (AIM: ECR) and New Guinea Energy (ASX: NGE) will be presenting in London on:

Thursday 17th May 2012

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 FOR FREE:

[puku] 29/4/2012 18:54

Full year eps 3.17 c or almost 2p for P/e of only 2.4 Bewildering drop in Sp ?

[puku] 01/4/2012 18:13

Indigenisation agreement finalised for $30m . Two possible drawbacks - [1] it is for 51% so loss of control. [2] it is to be paid from future dividends, but profits will be $19 m this year so at 50% "loan " could be clear in 3-4 years. Meanwhile production going up and up, and extra cash from unpaid-divs will go into other projects. Forward Pe only 3-4 so very cheap if you think risks are low. Bought in this week.

[lucky_punter] 25/1/2012 04:44

Caledonia Mining (LON:CMCL, TSX:CAL) is targeting gold production of 40,000 ounces this year from the Blanket Mine in Zimbabwe after a strong end to 2011.
Fourth quarter output was 10,533 ounces, up 8.1 per cent on the previous three months and 69 per cent on the same period last year.

[zangdook] 13/1/2012 14:29

I don't know why people are using the other thread when it has a misspelled name and no charts.

Giving this one a bump.

[l2user] 04/1/2012 22:49

Gold tipped to breach US$2,000 this year
2:05 pm


Fresnillo several of the market's smaller producers would also be major beneficiaries.
For example Medusa Mining already impressive margins – last year it produced around 100,000 ounces of gold at cash costs of US$189 per ounce – would be enhanced further.
Meanwhile the economics of other gold producers like Archipelago (LON:AR.), Cluff (LON:CLF), Caledonia Mining (LON:CMCL), Hambledon Mining (LON:HMB), Vatukoula (LON:VGM) and Norseman (LON:NGL) would be greatly enhanced also.

[ceohunter] 09/12/2011 15:09

CMCL presentation from Proactive Investors Event - 8th December: