Stephan Bernstein, CEO of GreenRoc, details the PFS results for the new graphite processing plant. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Topped up on today's price weakness. Gold miners generally having a tough few weeks, which is masking the good progress of CMCL.
Thanks for sharing, Troajan.
What a remarkable little company, so efficient and profitable, such foresight!
Great things still to come!
Probably keeping cash in case it's needed on new open cast.
Record production for any quarter announced this morning, can't see anything on an increased divi tho'.
https://miningzimbabwe.com/zimbabwean-man-to-be-caledonias-biggest-share-holder/
Good to see terms of acquisition is equity and small NSR. Don’t see the sp doing anything other than tagging POG until feasibility study identifies how much capex is required.
Cmcl intimated that they intend to cover most from ops which is what I expected. The early start with the oxides and the new shaft on line will help.
Divi will likely mark time until they have a better handle on costs.
Zim govt seem to be open to currency terms.
Considering increasing existing positions as they keep coming out tops but I want to diversify my income a bit more. Cmcl defo looking good value now!
Good luck to holders here.
Usual caveats
Trek
Just topped up my holding by 34% so now almost back to my previous (undiluted) ownership level.
I'm actually surprised this did not break the £9 barrier today, especially given the size of some of the unusually large buys. Then again, this is a junior gold miner in Zim, so not top of most people's buy list.....
As I see it we'll just be owning 29% less of a larger company.
To me it looks like a good acquisition. They presently produce 80Koz X 0.64 (accounting for non CMCL ownership) at Blanket equating to = 51 Koz. 200Koz combined from both mines would be a 300% increase in revenue. For the new mine, being open cast they estimate similar (or slightly lower) AISC than Blanket, so if the capex for the new mine can be largely self funded while maintaining the divi I give it the thumbs up.
Thank you Bismarck. Silly me I was assuming that they would be telling me how much my existing holding would be diluted relative to what it would be after the transaction. Instead they add the new and old together and quote a figure based on the proportion of the new relative to the combined total. To me that is meaningless.
Am I being cynical when I say this makes the investment appear to be less of a betting the farm approach than is actually the case?
There are 12.2m undiluted shares in issue
So this will increase to 17.3m after dilution by 5.1m new shares
5.1m is about 29% of 17.3m
In addition to the smelter royalty the RNS states they paid a "total consideration of 5,123,044 Caledonia shares representing approximately 28.5 per cent of Caledonia's fully diluted equity."
Yet when I look at the accounts they state the no of fully diluted shares is 12.2m. 5.1 into 12.2 is nearer 40% not 28% so...
what am I missing?
https://polaris.brighterir.com/public/baker_steel_resources_trust/news/rns/story/w31oj2x
Mark said in the interview that they were looking at something interesting that may take priority over Maligreen. Now we know what it is!
https://www.proactiveinvestors.co.uk/companies/news/987834/caledonia-mining-hits-target-runway-as-gold-production-rises-20-987834.html
2 trades on that news.....nutz?
Dragged down by poor sentiment and weak gold price. This has a low AISC (below $1000) and $14.4mill in the bank so dividend hopefully will be safe. Inflationary pressures only seem to be coming from materials so a tightly run ship.
In fact, Liberum raised the target price post the production update earlier this week.
CALEDONIA MINING CORPORATION PLC CALq.L: LIBERUM RAISES TARGET PRICE TO 1421P FROM 1380P - Reuters News
https://www.proactiveinvestors.co.uk/companies/news/987022/liberum-sets-a-1-380p-price-target-for-caledonia-mining-based-on-forecasts-of-strong-free-cash-flow-987022.html
“We believe that Caledonia will re-rate as the market re-assesses dividend and growth prospects and comes to realise that the current ‘Zimbabwe haircut’ is excessive,” wrote Liberum.
“Caledonia’s capex spend should fall significantly next year. The resulting strong free cash flow generation should allow for sustainably higher dividend levels from 2023, concurrent with acquiring and developing new projects. We expect that the company will strive to ensure that dividends are ‘upwards only’. This would be attractive in providing a degree of predictability, particularly if the gold price trends down as we forecast.”
The gold price needs to move back over $1800 for sentiment to improve. Anything under £10 is worth topping up on.
And the reaction to this excellent news so far today is..........one share purchase of 542 shares at £9.20
We've a divi of >5%, a divi cover of X 5, plenty of cash and a P/E of around 3.3, what more needs to happen to move the SP upward?
"Production in the first half of 2022 was excellent and exceeded our
expectations. Production excludes an estimate of approximately 1,500 ounces
of recoverable gold included in an ore stockpile which will be processed after
the commissioning of additional milling capacity in the next few weeks."
The additional ore, once processed will then increase total to 21,500 oz so that's 7.5% above guidance! That 1,500 oz equates to >$2.5m additional net profit for the quarter.