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Reading it right BTB... Hopefully we will play catch up today!
Bobby, I'm just looking at their website. Looks to me like the stock is UP 20% in New York but DOWN 7% in London.
Am I reading that right???
I'm no expert but it could be down to the tsx delisting...
Anyone know why? Can't find any news, even on their own website.
Thanks for the reply Stockable, so looking at sometime before that comes into fruition then... I'll take the upward trend in share price along with that central shaft adding to production figures in Q4. Tough jurisdiction to get things done and they have proved themselves thus far IMO.
When I last met the management in January 2020, they made it clear that their expansion efforts were completely focused on Zimbabwe. They were not looking outside the country. The main stumbling block for acquisitions seemed to be price. In their opinion, the prices offered were simply too high. There also appeared to be issues relating to the legal ownership of the assets they were offered.
Morning, any knowledgeable posters out there that know what brownfield sites they are looking at? They mentioned they have looked at 2 dozen from memory in the recent results meeting.
Regards
Wow. Nice 300k buy yesterday... slow and steady rise.
Agree johnwesley12, production will increase for sure... they have also looked after the local community and staff during covid … a big plus specially operating in a country like Zim… buy on the dips for me...
What is not to like, very small market cap compared to companies net earnings, price of Gold not going anyway any time soon in current climate., in fact will probably continue to go up, and with capacity to increase gold per ounce , this makes this company a cracking buy. A true little gem! definitely a solid hold for me!
I was actually looking to cash out today (& walk away up 85% in 6 months) but these results have persuaded me to stay in. Instead, I'll buy any dips.
Spot on... to add the management seem honest, clear and always keep the market updated. Slick operation in a very difficult jurisdiction.
Taking a broader view of the UK stock market and it’s increasingly difficult to find companies where the management is prepared to give guidance. That’s compounded by the problem of many companies abandoning their dividends. For sure, Caledonia comes with a jurisdiction that many would run away from but considering the company on its performance and considering the jurisdiction on how it has treated the company and the outcome may be quite different.
It recently deferred making a decision on its quarterly dividend in light of the lockdown in Zimbabwe. It has subsequently decided to go ahead with it. The cost will be some US$860,000. Bearing in mind that as at 24th April 2020 it had US$14.1m in cash (At the 25th March 2020 it had US$12.5m) and very low debt, it will not exactly break the bank. Should it choose to abandon its dividend at some point, I will probably divest but that does not seem to be a realistic prospect for the moment. The company will provide the market with its next quarterly update on 14th May.
Very importantly, it seems to have reached an accommodation with the Government of Zimbabwe. It continues to operate at around 93% of target production but provides considerable assistance to the community in which it’s based.
It may be ticking over for the time being but there is the probability of a substantial increase in Gold production (Increasing to around 80,000 oz per annum) by 2022 with the commissioning of the Central Shaft. This will have the added benefit of extending the mine’s life to 2034.
But Caledonia comes with inherent risk. Most obviously with the Gold price but also jurisdiction. This is a pure Zimbabwe Gold play. It’s looking for acquisitions (At the right price) but only in Zimbabwe. Added to that is its ability to get paid-in-full and on-time. There could also be issues with critical supplies coming from South Africa. Even the reliability of its electrical supply has been called into question in the past but that seems to have been mitigated through a Government scheme as well as the use of diesel generators. It's planning to construct a solar energy plant (Estimated cost some US$18m and debt-financed - it would be a phased project) eventually to provide energy for all its daytime electricity needs. But that is some way down the line.
The big issue seems to be jurisdiction. If it was based in Australia and paid a tiny annual dividend, its rating would probably be a lot higher. Having said that, unlike many companies in all sectors, it’s operating profitably and paying dividends. And it does seem to be able to provide shareholders with a degree of guidance.
No. But we did see a sale of 315 shares at £3.51 apiece, at 10:25:40 today—if the record is to be believed.
Will we see a 1000p closing price today ?
BuggerTheBanks, I am not one to give advice as I am not into much profit only investing in PM's but one's I like are PAF, Ariana, watch Cora (was a good one a few years back!) Hummingbird is on my horizon. You could play Fres cause it behaves like a Yo-Yo (manipulated?) and Hochs will soon be OK on a sliver play. Silver is the wold horse, difficult to tame. LOL!
How about you?
Solgold is supposed to allow me to retire but it never works like that does it!
Sorry: that should read "what are your other holdings?".
Eish, there are others here who are better placed (than I) to advise you on the technical, but to my eye they are well run, strong balance sheet & pay a sustainable dividend (Mexican Beer Virus aside). Caledonia are by far and away my best performing mining stock (11 holdings) after I started buying into the sector in Q319. My only regret is not getting into Polymetal around the same time (they remain on my watchlist). Also looking to BTFD here & add to my holding should opportunity present itself.
Do you have any other PM holdings?
Guys, I have a few of these and wonder if anybody can explain why ALL miners on my board are red and CMCL goes up? OK not by much but what has CMCL got that the others ar'nt plagued by?
In its update of 30th March 2020, the company stated that it had applied for an exemption from the recent lockdown and was awaiting a response from the authorities. In the meantime, it was continuing production at some 70-80% of its normal target. The lockdown is due to end on April 18th. Whether or not it gets the exemption and when, who knows? Purely conjecture, but the lockdown is now entering its second week. I would not be surprised if it simply continued production, albeit at reduced levels for the remaining period. There may be no response from the authorities and, if there is one, it could be very late into the lockdown.
Lennie, if Corona get's to Blanket, I will more than eat my hat! Would not think they will stop production, unlike my other share PAF. I would not be surprised for us to reach pre-Corona levels quite soon and well beyond, LOL! All other factors going well of course!
and closed at 775p in Canada with 800p paid in the USA
Lennie
775p paid earlier in USA - hopefully we'll react accordingly
Lennie
Seems to have been forgotten looking at recent other gold/silver share rises - next div in April I believe - I've topped up at these low levels
Lennie