Member Info for Bismarck

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.fxempire.com/forecasts/article/gold-stocks-are-heavily-oversold-a-rebound-is-likely-soon-1065613

Let's keep fingers crossed.........

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.”

Perhaps we will have to wait for completion of the phase 2 ramp up and actual production numbers of >20 Koz /annum being achieved, along with some good drill results before this re-rates.

The good news is that it's easily beaten the market this year, and I'm in no hurry.

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.

I think lack of liquidity, preventing institutional investors buying has also held back the SP. Once institutions get involved there is the "they must know something" effect which inspires greater confidence within the general market and helps sustain upward SP momentum

Does anyone here have a subscription to access this?

If so it would be good if they would kindly copy/paste the interesting bits here.

I think many believe that within the licence area there are probably better sites than Cononish to build a mine. I certainly do.

Now the hard work has been done, ie putting the right team together, building the first mine and making it profitable I would expect the process to be significantly easier next time around.

Scotgold already have one of the lowest AISC's in the industry at Cononish and I imagine the economies of scale from operating multiple mines in the same area would make a very compelling case indeed!

Exploratory drilling (for a second mine) next year hopefully......

· As part of the Company's vision to grow, Scotgold plans to continue exploration activities in and around its current Cononish mine and within its licenced 2,900km2 area in preparation for exploratory drilling in 2023

I suspect the falling gold price may have dampened interest somewhat....

Sorry for predictive text

"not complimentary towards the company's management "

Anyway good luck all, hope they can turn it around

I got involved spring 21 at 23p and bailed out about a year later at 13p, so glad I did.

I cannot understand how there is much optimism/ramping still going on here

Anyway good luck to all those still involved.......I hope management can turn it around, but what I've heard from within the
Industry is not completely towards the companies management.

"the Company has taken appropriate measures to minimise the impact by optimising costs and increasing efficiencies, remaining profitable and cash generative during the period to post an $8m cash profit, up 23% y/y"

So at current FX rates $8m = £6.7m

From a market cap of £24m that's a P/E of 3.6 for a company with significant growth potential!

Looks that way.

Strange, apart from the war, which you would expect to put upward pressure on the SP, I cannot see anything has happened that would cause the drop from 40p at end of Jan and the circa 20p we've now seeing....

I think we should be due for a production update for June any time now. Looking forward to it and the SP boost that should follow (fingers crossed!)

Thanks for posting

Alternative for non Bloomberg subscribers - https://www.fa-mag.com/news/jpmorgan-s--big-hitters--of-gold-market-face-trial-over-spoofing-68633.html

https://www.fa-mag.com/news/jpmorgan-s--big-hitters--of-gold-market-face-trial-over-spoofing-68633.html

I agree CMCL is very cheap, with a 12 month forward P/E of 3.3
PAF have forward P/E of 4
SHG's forward P/E is 6.6 so I'm not sure I agree that it's particularly cheap compared with other junior miners?

Morar

It seems you were correct. Following your purchase the SP has now fallen to 73.45p which I have taken advantage of and just bought some more.

A big part of the problem is that most of the shares are owned by the BOD and other "non sellers" so liquidity is rubbish