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John Polomny is an individual investor and speculator seeking unique, overlooked, and well researched opportunities and speculations from all over the world.
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  • Caledonia Mining Reports 4th Quarter And Annual Results For 2012 0 comments
    Mar 28, 2013 11:28 AM | about stocks: CALVF

    Press Release:

    • New record high annual gold production at the Blanket Mine in Zimbabwe of 45,465oz, a 27% increase over the year ended December 31, 2011 (35,826oz).
    • Q4 gold production of 11,821oz, a 12% increase on Q4 2011 (the "comparable quarter") of 10,533oz.
    • Decrease of 1.7% in direct full year operating cash costs at Blanket to US$571 per ounce compared to US$581 in 2011. Blanket's all-inclusive costs for 2012 fell by 15.2% to US$759/oz compared to US$895/oz in 2011. The reduction in costs was driven by higher production and corresponding lower average fixed costs per ounce.

    Financial Highlights
    • Gold sales for the Year were 45,181oz at an average price of US$1,666/oz, compared to 35,504oz at an average price of US$1,577/oz in 2011.
    • Gold sales during Q4 were 10,337oz at an average price of US$1,703/oz, compared to 12,918oz at an average price of US$1,664/oz in the preceding quarter and 9,329oz at an average price of US$1,712/oz. in the comparable quarter.
    • Gross profit for the Year increased 41% to $40,915,000 (2011: $29,115,000).
    • Gross profit (i.e. after depreciation and amortization but before administrative expenses) for Q4 was $9,250,000 compared to $12,602,000 in the preceding quarter and $9,012,000 in the comparable quarter.
    • Net profit after tax for Q4 was $3,590,000 compared to a loss of $7,240,000 in the preceding quarter and a profit of $1,369,000 in the comparable quarter.
    • Net profit for 2012 attributable to Caledonia's shareholders of $8,720,000 (1.72 cents per share) was after a non-cash, non-recurring accounting charge of $14,161,000 arising from the successful implementation of Indigenisation at the Blanket Mine. Indigenisation was implemented by the sale of 41% of Blanket to Indigenous Zimbabweans and the donation of 10% of Blanket to the local Gwanda Community Share Ownership Trust. Further explanation of the basis of this charge is set out in Note 5 to the Annual Consolidated Financial Statements.

    Not really much to say except that the results are great. Hopefully the upcoming elections in Zimbabwe will lead to the end of the Mugabe rule and a revaluation of this stock higher. It is currently trading at around a P/E of 3. If this were anywhere else the stock would be 3 or 4 times its current price. I continue to hold and add on dips.

    Disclosure: I am long OTCQX:CALVF.

    Stocks: CALVF
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