Big Fan14 May 2024 09:37
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.