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Are we on the way back to £20? Hope so.
Should be a divi next month but not mentioned yet.?
Sincerely hope the completion of the new shaft coincides with very much higher POG! What a bonus it would be! Higher divi and sp! Every reason to believe will! GLA
$2500 would be V good for the SP!
Finally some response from the market, a 10% increase in CMCL SP from the past 2 days of trading!
Bismarck, if gold keeps performing and the production does deliver more gold as predicted with the new shaft in action, we could easily shoot to 1500 or beyond! I agree, much lower risk than Russia or China! Otherwise there would have been problems long ago with mugabe in power!
So when do we take off? The sp?
The government own 16% of Blanket, the local community 10% and the staff another 10%. It is a good cash earner for the politicians and community which has helped them not get into issues I believe... as in extracting cash out of zim for divis etc... this year will be a good year for all with production increasing
As far as I know Blanket mine has operated free from molestation by Zim govt for decades.
This is a far lower risk than investing in either Russia or China as far as I'm concerned. In fact I've avoided Russia since 2014 for moral reasons.
I'm happy to keep topping up in this little gem at this absurdly low price. Ultimately we must be rewarded in one way or another....
The key issues are political and economic. If this company was operating in, say, Australia, the sp would be much higher. They seem to have overcome the hurdles of operating in a bankrupt country and keep on improving the dividend. I'm very happy to keep adding and picking up four payouts a year.
I agree it's very odd. However, no matter whether it's $1800, $1900 or $2000 it's still at least double the price that CMCL spend digging it out of the ground. That's why I don't understand the current SP.
This is absolutely hilarious. Gold is now DOWN $80 & silver is DOWN$1.70 (& they're both still falling). Both metals are now below where they were before all of this kicked-off last night.
Did every problem in the world get solved over the last 8 hours or something??? I've been watching this (so called) market for over 9 years now & this is, BY A COUNTRY MILE, the most blatant and ridiculous manipulation I've ever seen. They either thing we're ******* stupid, or they really just don't care.
But they want you to believe that the west has free-market capitalism. Free markets! FFS!!!
this will hopefully start to move soon... gold going nuts today
they had waited a day or so to finalise that hedging deal ...:)
The spread is variable and even at 6% is not prohibitive. I can buy at 915p this morning which is excellent value. We could be looking at around 65c dividend this year or nearly a 5% yield. Assuming gold doesn't tank this is one of the best picks in the sector.
I wish I could paste a snapshot of their fundamentals from stockopedia here.
This company is about as close to a license to print money as you are likely to find.
Forecast divi cover for 2021 = 4.24 X and for 2022 = 5.4 X
Yep its a boring share to own and the news today is really sad to hear. Patience is my watch word on this and I see a decent move up potential on results if the spot price continues its upward trend. The problem with this is always liquidity given the shares in issue and thereby a hideous spread puts many off ..
Stockable, I really enjoyed your post. As a holder here since 2019 (buying in sub-£6) I enjoyed the ride to £18+ along with the regular dividend hikes. The last 18 months hasn't been so good (to the sector as a whole) & I'm considering adding to my position here, although I notice gold is up 7% over the last twelve months, whilst we've languished. Unrealised value, or something else afoot?
I actually make the yield 4.5% based on current exchange rate and SP, and I too cannot understand the lack of trade.
Considering the sharp rise in Gold prices, genuine surprise is the only way I can express the lack of trading volume for CMCL . In my view, the management has delivered on what it has promised stakeholders. For starters, its ESG credentials are excellent. It was doing ESG before ESG had become a widely used marketing tool. At the same time, it has delivered for shareholders.
Based on figures from Stockopedia, its operating margins are around 33%, its return on capital employed is over 20%. It’s debt-free and offers a yield of around 3.7% (That’s covered more than three times) and is paid quarterly.
As for operational delivery, when the Blanket mine was acquired from Kinross in 2006, its production for Q3 was 6,475 oz of Gold. By Q3 2021, that had reached 18,965 oz. Its Central Shaft project was key to its development. Going to a depth of 1,200 meters (London’s tallest building is the Shard at 306 meters). It took five years to complete and was delivered on time (Slight delay for COVID) and within budget (US$67m and self-funded). Not only does it gives the company greater operational flexibility but that feeds into higher production and lower all-in sustaining costs (By the end of 2021, this had fallen to US$909 per oz) and a substantially increased mine life. It was designed to increase production to around 80,000 oz of Gold by 2022. Last month, the company issued an RNS with guidance at 73,000- 80,000 oz of Gold for 2022.
As for growth, it’s looking at further development in Zimbabwe. That includes its Maligreen asset in the Zimbabwe Midlands. This has inferred resources of some 940,000 oz of Gold. Importantly, it estimates that some 712,000 oz is at a depth of less than 220m. So an open-pit operation is likely. Of course, this will involve extensive drilling over the next couple of years. But the company has a reputation for delivery. Maligreen cost US$4m and Caledonia is planning on spending some US$1.6m over the next two years on drilling. That builds on the considerable exploration that has already been carried out on the asset.
It’s also worth noting that Zimbabwe has “Use it or lose it” laws in place. In my view, that puts Caledonia in a very strong position. It doesn’t sit on its assets like many others. So there are likely to be other attractive investments on the horizon.
For sure, the jurisdiction is risky. But most Gold miners operate in jurisdictions that could be considered risky. Both Russian and Chinese companies have significant investments in Zimbabwe - so it's certainly not off-limits. And Gold is the country's largest export by value.
Just to add, equity returns for the next decade are forecast to be 4.3% PA globally according to Schroders, which I understand is a fairly typical prediction. At a P/E of 4 the company basically earns your money back in 4 years (obviously not all in divis). Don't need to be a mathematician to see where this is leading..
The SP is still where it was 8 months ago. POG is up, profits are up, dividends are up, 12 month forward P/E at an incredible 3.9 according to stockopedia, new project in the pipeline......
Can anyone explain what's going on?
Looking to top up again at this price...cannot think of anything better to buy when CMCL is at this level, or is there something I've overlooked?