Replies to post #5401 on Caledonia Mining Corporation (CMCL)

[FIFO_kid2]

Name the firms that are not already grossly overvalued by the market.

IMO the mining sector does an absolutely horrible job of allocating capital so buyer beware. What really bites is even a compliant 43-101 accounts for a 15% variance so then why not apply an appropriate discount rate for all new projects and really the only measure that is important for an operating mine as an investor is all in costs.

I agree with you that the original budget for the capex on the main shaft and stope access was planned at 55 million. Now the cost stands at 75mil and the timeline for completion has been extended by 9 months. 49 % of this cost overrun is approximately $1.75 per share in lost dividend potential.

I also think it is wise to hedge your position if possible if the risks and returns are high.