Proactiveinvestors recommends
Stocktube video
26/11/2012

Caledonia Mining proposes regular dividend payments

View full size
Additional Information
Market: AIM
Sector: General Mining - Gold
EPIC: CMCL
Latest Price: 68.25p  (-3.19% Descending)
52-week High: 94.00p
52-week Low: 46.30p
Market Cap: 35.57M
1 year chart More charts
digital-look imported chart image
Deal CMCL Tax Free*
*subject to change and depends on individual circumstances.
1 day chart More charts
digital-look imported chart image
Advertisement
Watchlist/Portfolio

Add to watchlist:

Only registered members can add into watchlist !

Register here !
Caledonia Mining
www.caledoniamining.com
Deal Caledonia Mining Tax Free* Losses can exceed
your initial deposit *subject to change and depends on individual circumstances.

 

Caledonia is an African focused mining and exploration company with an operating gold mine in Zimbabwe, a copper-cobalt exploration project in Zambia and two platinum-nickel exploration projects in South Africa. Caledonia is listed on the TSX (CAL), and on AIM (CMCL) and its shares are traded on the NASDAQ-OTCQX (CALVF).

 

Full Caledonia Mining profile here
Pdf

Caledonia Mining attractive on number of fronts suggests Canaccord

January 16 2013, 2:53pm The broker says the investment case for Zimbabwe-focused Caledonia is based on four key pillars.

Gold miner Caledonia Mining (LON:CMCL TSE:CAL) could have almost as much spare cash as its current value in two years time, underlining its appeal says broker Canaccord. 

The broker says the investment case for Zimbabwe-focused Caledonia is based on four key pillars: a proven track record of delivery; a completed indigenisation process; a five year plan to increase production by 90% and dividend potential after the recent maiden dividend of C$0.005/share.

“With the net cash balance building, Caledonia offers a premium dividend, production and earnings growth versus peers,” says the broker.

 The company trades on a 65% discount to peers on three key metrics, while average annual free cash flow will be US$33m over the next 5 years. 

This will allow the company to fund its 5-year investment programme of US$37m internally, while leaving ample room for dividend growth, argues Canaccord.

It has a target price of 16p/share, and forecasts Caledonia will have US$55m in net cash by the end of 2014, equal to 90% of the current market capitalisation.

"This should draw attention to the group’s attractive  cash flow, while an initial resource estimate at the Zambian copper asset (due mid-2013) provides further upside."

Shares were 7.09p today.


No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.