Thursday, March 27, 2014

caledonia mining ~ gold in zimbabwe

update november, 2014: caledonia + endeavour are still alive and struggling in the low metal price environment ...
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there was an investor lunch event with 3 companies in munich:

i have already endeavour + enwave in my portfolio, so let's give also caledonia a try and yes, let's support the economy down there. let's also hope the country will stop destroying its economy soon. they've had already destroyed its currency via hyper-inflation in 2009, so it is hopefully enough. of course, it is a long way to go till zimbabwe reaches its old rhodesian levels, because 3 decades of mugabe's terror and mismanagement made from the former switzerland of africa the probably poorest country on earth.

have you ever seen an 100 trillion dollar note? the highest face 'value' ever printed in the history of mankind? well, it was before the zimbabwe dollar was replaced by USD and south african rand in january 2009.

maybe few key points about caledonia mining
  • no debt
  • $25m cash
  • fully indigenised aka 49% owned blanket gold mine in zimbabwe
  • low cost operation (cash-costs 2013 were $609/oz, all-in sustaining costs $972/oz ... not bad at current gold price of approximately $1,300/oz
  • 2013 production 45,517 oz gold and (very) slowly rising
  • internally funded expansion plans (because there is currently no debt financing available in zimbabwe
  • last but not least, they've started to pay a 7% dividend p.a. in january 2014
btw, i had already a gold producer from zimbabwe in my portfolio, new dawn mining, but they gone bankrupt, so i have lost all money invested :(. trading + investing is a risky game, you know? 

eof
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