Author Topic: CALVF - Caledonia Mining  (Read 6750 times)

DTEJD1997

  • Hero Member
  • *****
  • Posts: 1394
Re: CALVF - Caledonia Mining
« Reply #20 on: August 12, 2018, 02:09:15 PM »
Hey all:

Caledonia is down BIGLY on it's quarterly report.

Earnings were actually pretty good at $.352 (+86% yoy) for the quarter, and $.752/share (+64% yoy period) for the six months.

Dividends are going to be maintained.

A director bought 4,000 shares a couple of days after earnings came out.

I think the stock is down for a few different reasons:

1). There was ANOTHER fatality at the mine recently.  A terrible tragedy.

2). The price of gold is DOWN.

3). The company is spending a TREMENDOUS amount of mining expanding the mine, the secondary shaft is now down just over 1.1KM.

4). Cash reserves are DOWN, as capital expenditures have been very high.  Perhaps this is what investors are most concerned about?

Overall, not too bad a quarter in my opinion.  We are getting closer to completion of the new central shaft.  Production is slowly increasing.  The situation in Zimbabwe appears to be improving.
A year from now, the company may be radically different than what it is today.

Anybody have any thoughts on this?


awindenberger

  • Sr. Member
  • ****
  • Posts: 316
Re: CALVF - Caledonia Mining
« Reply #21 on: August 24, 2018, 06:22:13 PM »
Hey DTEJD,

I bought into this company last year after seeing your posts and doing some DD. Must say I'm excited to see it down under $7 again, as its giving me the chance to add more shares.

DTEJD1997

  • Hero Member
  • *****
  • Posts: 1394
Re: CALVF - Caledonia Mining
« Reply #22 on: August 24, 2018, 06:55:52 PM »
Hey DTEJD,

I bought into this company last year after seeing your posts and doing some DD. Must say I'm excited to see it down under $7 again, as its giving me the chance to add more shares.

We must be thinking along the same lines.  CMCL was down even MOAR bigly on Thursday and I picked up a few more shares.  I wish I could say that I got them at the bottom.  Close, but no cigar.

There was no news Thursday...perhaps CMCL was down because of the problems with land seizures in SA?

Today it was announced that CMCL is increasing their stake in Blanket mine.  Probably a good thing.

I've noticed that a couple/few times a year CMCL will spike down...

I've added twice now to my position.

It will be interesting to see what happens.

DTEJD1997

  • Hero Member
  • *****
  • Posts: 1394
Re: CALVF - Caledonia Mining
« Reply #23 on: August 28, 2018, 09:13:56 PM »
Hey all:

CMCL is buying about 16% more of the Blanket Mine.

They are getting more of the mine for cancellation of debt and issuance (exchange) of shares to the existing ZIM shareholder.

I think this is a good thing for CMCL.

I am also going to guess that CMCL has designs on getting some more properties (in ZIM) and the shareholder doing the exchange knows as much.

CMCL is trading for about a 5.5 P/E currently?

We will see, but in addition to Gran Colombia Gold, this is the cheapest gold miner that I know of.

Any thoughts?

rukawa

  • Hero Member
  • *****
  • Posts: 822
Re: CALVF - Caledonia Mining
« Reply #24 on: August 29, 2018, 08:24:05 PM »
CMCL is trading for about a 5.5 P/E currently?

We will see, but in addition to Gran Colombia Gold, this is the cheapest gold miner that I know of.

Any thoughts?

Their share price is 6.26 USD. They earned 0.53 USD for 6months...run rate is 1.06 EPS. Their PE is therefore 6.26/1.06 = 5.9, not 5.5.

I believe you used their adjusted EPS figure of 0.752 USD and their Canadian share price of 8.2 CAD/share to calculate your PE figure. Incidentally I'm not a fan of their adjusted EPS figure for valuation purposes (in might make more sense for YOY comparison purposes) since they attempt to remove deferred taxes from earnings. I don't really see how you can avoid paying deferred tax liabilities...I'm I missing something? Overall I'm never a fan of "adjusted" anything.

That said, I think the stock is pretty cheap and I like having a little exposure to cheap gold in my portfolio...just in case  :P