vallence Welcome to Caledonia Mining Corporation (CALVF :-) great to see you here :-) your CALVF analysis will be highlighted in CALVF IHub PR window :-) would appreciate your CALEDONIA analysis also on CAL forum :-) http://investorshub.advfn.com/boards/board.aspx?board_id=7060 TIA
CALEDONIA MINING ANALYSIS I have watched this company for years and have always been amazed the tenacity of the management in dealing with the politics of what ever dictator is running the country it has operations out of. Their stand against the Zimbabwe government along with the other mining companies freed them from the grips of confiscation by the government of gold mined. Africa and it's dictators will in the next few years learn from this and when that happens there will be fortunes made on the continent by the small mining companies like Caledonia that have stayed the course and expanded under difficult conditions. Caledonia is an exploration, development and mining corporation focused on Africa. The Corporation’s primary assets are a gold operation in Zimbabwe, a base metals exploration project in Zambia (Nama), platinum group and base metals (PGE) projects in South Africa (Rooipoort/Mapochs) and a non-producing gold mine in South Africa (Eersteling) which has been identified for possible disposal. Caledonia also has diamond projects in Zambia and South Africa. Now that Blanket has been returned to a production level of approximately 550 tonnes per day (“tpd”) the focus is now on completing the No. 4 Shaft Expansion Project to achieve the planned 40,000 ounces of gold production per annum. In addition to the No. 4 Shaft Expansion Project, judicious expenditure on the essential sustaining capital expenditure will continue to progressively remedy the lack of investment over the last few years due to foreign currency shortages. Activity at Nama and Rooipoort/Mapochs properties will be determined by available cash resources.
Provided a satisfactory investment climate is created in Zimbabwe and the Zimbabwean indigenization requirements and obligations are finally clarified and economically viable, Caledonia intends to make the significant capital investments in Blanket, which are required to sustain gold production at 40,000 ounces per annum. At the Nama base metals exploration project in Zambia, the ongoing field work supports their current understanding of the geological structure and the possible continuation into the Nama Project area of the Copperbelt style mineralization that exists on neighboring properties. Tenders have been called for an initial multi-hole, deep-level diamond drilling program to explore for Copperbelt style mineralization. This program is expected to commence in 2011 as soon as the ground conditions permit after the rainy season. Discussions with the South African Department of Mineral Resources continue regarding the extension of the period of the exploration plan previously submitted in respect of the Company’s exploration projects at Rooipoort and Mapochsgronde.”
Financial highlights for the Quarter and the nine months ended September 30. For the quarter ended September 30, 2010 Caledonia generated revenue of $6.331 million from the sale of 4,934 ounces of gold at an average sale price of US$1,241 per ounce and a cash cost of US$651 per ounce, realizing a gross profit of $2.878 million and a net profit of $1.647 million. Commenting on the quarter’s performance, Stefan Hayden, President and CEO said: “I am pleased to report that gold production at the Blanket mine was 45% higher than in the previous quarter. This was an outstanding and highly commendable performance by the Blanket and Caledonia management teams. This increase in production was also due to the implementation of a revised mine plan, improved recoveries from the metallurgical plant and the installation of the first standby generator in late June. The generator has allowed underground operations to continue during interruptions to the normal electricity supply. Blanket’s cash costs decreased significantly from US$816 per ounce in the second quarter to US$651 per ounce in the third quarter. We expect that Blanket’s cash costs will continue to decrease as production increases to an annualized level of approximately 40,000 ounces of gold per annum by the end of 2010, following the commissioning of the No. 4 Shaft Expansion Project at the end of third quarter.
Caledonia will be big in Africa within 5 years and at it's current depressed price it is a bargain that will make you rich in the future. Their management as stated above is the key along with their diverse asset base that will make this a company you wished you would have bought at these very low prices.
In addition to the producing Caledonia Gold Mine property,
The Blanket Gold Mine -
holds both blocks of claims away from the production concentration
and has applied for a total of thirteen exploration licenses (Exclusive Prospecting Orders, or EPOs) spread throughout the greenstone terrains widely scattered over Zimbabwe.
The total number of non-production claims is 322 with a combined area of 5,264 Ha, while the total area applied for under EPOs totals 320,541 Ha.
Gwanda Greenstone Belt hosts three remaining big producers (>300oz Au per month) having once hosted no less than 268 operating mines at one time.
Blanket Expansion and Development Projects of old mining properties on a large Caledonia property with many gold mines -
The Cheviot Sound Money Conference - held in London, January 27, 2011.
Elements for monetizing a silver coin in British Pounds Minting silver without a mining industry The world is waiting for the sunrise Bill to monetize the silver ounce in Mexico Hugo Salinas Price Full speech of Mr. Hugo Salinas at
Gold Glitters for Caledonia Mon, 31 Jan 2011 02:31:35 EST
Symbols: CALVF Jan 31, 2011 (Zimbabwe Independent/All Africa Global Media via COMTEX) --
Caledonia Mining Corporation, which owns Blanket Mine, increased gold production by 46% to 2865 ounces in December as the company seeks further reinvestment to lift output to 40 000 ounces annually.
Caledonia, which has since resumption of operations in 2009 bemoaned the intermittent power supply, finally installed standby generators at Blanket mine. The installation of standby generators, expected to be operational by March this year, came at a time the company noted slight power supply improvements.
The company is listed on Toronto Stock Exchange (TSX).
"The production rate achieved by the end of 2010 is over 99% of the target of 40 000 ounces per year and represents a very substantial increase in Blanket's production capacity," said the mining firm in a statement released on TSX on Tuesday. "More importantly the level of production achieved at the end of December 2010 conclusively proved that key aspects of the No. 4 Shaft Expansion Project, namely the underground crushing station, the automated skip loading system and the increased milling capacity all operate well within their design capacity."
Caledonia said the focus after increasing production was to address the historic under-investment in Blanket mine development, equipment and machinery.
"Underground development work has commenced in order to ensure that production levels in years to come can be maintained, as well as providing platforms for underground exploration with a view to potentially increasing production above the currently planned rate of 40 000 ounces per annum.
"This development work, in conjunction with reinvestment in equipment and machinery, is expected to have a temporary effect on production in Quarter 1 of 2011, but it is still anticipated that Blanket will produce 40 000 ounces in 2011," added the mining company.
Caledonia said they were mitigating against power cuts but Blanket had experienced considerable unexpected delays with the delivery of the 33kiloVolt electrical switchgear which was required for the installation and commissioning of the four generating sets.
"It is anticipated that the entire 10 Megawatt generating system will be operational by the end of March 2011 at which point Blanket will be able to maintain all mining, hauling and milling operations during interruptions to the electricity supply," said Caledonia.
"Subsequent to Blanket entering into a new supply agreement with the Zimbabwe Electricity Supply Authority, electricity supply has been more stable. Whilst Caledonia welcomes the improvement in electricity supply it still believes it is prudent to proceed with its plans to equip Blanket with full standby generating capacity to safeguard production against any future power interruptions."
Electricity supply remained the debilitating factor in the full recovery of the mining sector and analysts point that while standby generators could mitigate the effects, the downside was increased operating costs.
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