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Looking forward to Q2 results. Gold price for the Q2 so far c. $1333 and rising, c. $250 higher per oz than Q1 average of c. $2072.* Stable production and improving costs should be a nice boost to operating cashflow ($250 x 18,000 = $4.5m additional revenue for the quarter? Extra $18m revenue for the year based on 1333 gold and 72k oz, both conservative figures (inputs below market price and full year guidance).
Does Caledonia have good takeover potential? Yes
If this share stays at 800 for much longer P/E and P/FCF will become very attractive, should Caledonia consider buying back stock? Maybe
* source: https://www.gold-eagle.com/article/gold-miners%E2%80%99-q1%E2%80%9924-fundamentals
Having attended (virtually) CMCLs latest presentation to the market it was pretty clear the COO leaving was a direct consequence of the quarterly debacle. It was not just the lack of foresight on the oxide layer but the fact that in opening up the new shaft they left machinery and working in the older less productive shafts vastly increasing their operating costs. In other words they spread themselves too thinly.
The look on the CEOs face when he explained that to me said it all.
big fan of cmcl- costs falling, production and price of gold rising. well run company. obviously not on the investor radar right now. there aren't many investments like this in london, lets get that sizable ir budget to work.
one concern i have as a shareholder and frankly something in the mda that made me chuckle , is that cmcl's geos didn't think to put 10 or 20k usd worth of short holes into bilboes oxide to test material before developing a small production. it seems a no brainer to me would have saved killing financial performance for the year with a operating loss of -9.4m usd. meanwhile the company aims to sell its solar farm which seems to have been a roaring success.
bilboes oxide:
"as disclosed in the previous quarter, the target mineralisation area which had been identified using old
information obtained from the previous owners (i.e. not the vendors from whom caledonia purchased the
project) was found not to exist"
solar farm:
"this transaction is expected to realise a profit on caledonia's investment in the plant, and release cash for reinvestment in caledonia’s core business of gold mining that yields higher returns to our shareholders."
if last years bilboes oxide development is anything to go by, the company can achieve higher yields developing solar farms!!
it does worry me that perhaps cmcl are great are running blanket, but lack the technical team to develop these other projects- perhaps that's grossly unfair, but bilboes oxide development **** up last year was completely avoidable.
still a buy for me though.
7,956 oz produced in April! At that rate annual production is likely to be nearer 88k!
What's not to like? We are heading in the right direction helped by improved POG. Targets hit and soon we hear what they plan for Bilboes. Solar a helping hand!
The big black giant has upted their presence! I am usually scared of them, they are a ruthless bunch but, hey-ho, here they are where money can be made (in gold!) in a country sanctioned by the USA! Money talks, LOL!
Yes, good Q1 ...less working days compared to Q1 2023 .... with this background very good production numbers .. now they need bringing the costs under control and all is good ... a stable production at blanket will bring them in a good in the funding talks for Bilboes later this year...
Caledonia's Blanket mine lifts its first-quarter output by 6% y/y
https://www.miningweekly.com/article/caledonias-blanket-mine-lifts-its-first-quarter-output-by-6-yy-2024-04-10
I think we need a good first quarter .. lower energy consumption und some sower other costs , stable production and the SP will rise from here ... they had some one time costs reated to the aquisitions in 2023 .. this should be over
This is PRO - Caledonia ...
Political risk? For example this piece in today's Torygraph. Good for gold in general but might there be a risk of seizure or compulsory purchase of CMCL's gold?
"Zimbabwe returns to gold standard in battle to kill off hyperinflation
Zimbabwe has launched a new gold-backed currency to replace the dollar, in the latest effort to shore up the perennially crisis-hit economy.
The new currency, which is called Zimbabwe Gold or ZiG, is being issued at a value of around 13.5 to the dollar, and 17.1 to the pound.
The central bank has given the Zimbabweans 21 days to convert their old dollars into the new currency, with newly printed notes and minted coins to begin circulation at the end of this month.
John Mushayavanhu, governor of the Reserve Bank of Zimbabwe, said: “We are doing what we are doing to ensure that our local currency does not die...."
https://www.telegraph.co.uk/business/2024/04/08/zimbabwe-returns-gold-standard-effort-kill-hyperinflation/
Just cannot understand why this is not moving upwards ? What more is required?
COO loooks good ..brings in some experience ..... now with POG at 2300$ +++ and AISC at Blanket Mine below 1300$ i think Caledonia Mining is a strong buy ... people forget about the other aquired projects ...
James Mufara commented:
"I am excited that I will be joining Caledonia and look forward to working with the talented team to drive operational performance across the group's high-quality portfolio."
A key info the market has not grasped is the life of mine at Blanket has been extended from 2034 out to 2041.
This will be highlighted in the will revised report on resource and reserve soon.
Another key factor is Caledonia maintained their quarterly dividend, goes ex on Thursday, which as the CEO stated "reflects the good start to 2024 and our confidence that the remainder of 2024 will be strong"
Looks undervalued @2300$POG . the Blanket mine will show better results in 2023 , exploration results are good ... low debt + dividend ... powerconsu ption will go down in 2024 and some administration costs will go down ... at all a good buying point at 10$ ....
Liberum notes the buy rating on a strong start to 2024 at the Blanket mine, and according to the broker in the coming weeks we should also see two potential material catalysts (updated Blanket resources; Bilboes sulphides studies).
https://www.proactiveinvestors.co.uk/companies/news/1044386/caledonia-buy-rating-restored-by-broker-ahead-of-material-catalysts-1044386.html
Nice to wake up and find POG has broken $2300/Oz this morning.
Does not seem as if the upward movement in POG is over yet? How high will we go?
And smaller mners have not felt the effect of The Herd smelling the money yet! When does the stampede happen? Must be soon? GLA
With gold trading at all time highs I would expect Caledonia Mining to be trading well above £10 per share.
Next quarterly dividend coming up, with ex date 11 April.
Troajan, what is NOT to like! When the herd discover gold miners and the POG keeps rising higher and higher, we should reach 1500, LOL ! By middle of next year I predict! Just love the 14cents Divi!
Rather pointless £2 drop last week