4/09/2014

Daily Deep Value 04/09/14 , Canadian Nano Cap


Deep value with Caledonia Mining Corporation: (CALVF)


Caledonia Mining Corporation operates a gold mine and acquires, explores and develops mineral properties for the exploration of base and precious metals focused on Southern Africa. 
Caledonia’s primary assets are a 49% interest in the Blanket Mine in Zimbabwe and a 100% interest in the Nama base metals exploration project in Zambia. Caledonia Mining Corporation trades on: the TSX (Symbol : CAL), and on the AIM Market of the LSE (Symbol : CMCL), and on the NASDAQ-OTCQX (Symbol: CALVF).

This profitable high dividend deep value play has been completely ignored by mining investors. Part of the neglect is exposure to perceived politically risky investment in a Zimbabwe's blanket mine coupled with  its tiny size ,(39.09M market cap 16.78 enterprise value).CALVF trades at a deep value discount to other gold miners

Why consider: Financially strong, trailing annual dividend yield 8.30%, discount to intrinsic value using DCF model, ignored by gold mining investors, consistently profitable with generous dividend. Financially strong, discount to book value, net cash per share .34 or 47% of the current price is net cash or 66% gross cash. 

current (04/09/14) price per share of $.75 versus book value per share 1.02, 52 week change -52.14%,  TTM gross profit per share .788, revenue per share 1.18 , TTM EBITDA per share 0.495012,cash per share of .49 or 25.70M 

"Caledonia Mining remains confident it will achieve its 2014 target of 48 000 ounces of gold at 49 percent owned Blanket Mine in Gwanda despite a 7 percent fall in first quarter output.
“Targeted gold production (at Blanket Mine) for 2014 is maintained at 48 000 ounces,” Caledonia said after first quarter output came in lower at 10 607 oz from 11 429 oz in 2013.
Market: 39.09M , Enterprise Value:   16.78M
Price/Sales:   0.65 , Price/Book:       0.76
Enterprise Value/Revenue:    0.27 ,Enterprise Value/EBITDA: 0.65
Operating Margin: 36.39% , Return on Assets: 19.48%
Revenue  61.73M .
Qtrly Revenue Growth (yoy):     -31.50%
Gross Profit :   41.09M , EBITDA : 25.80M
Total Cash (mrq):  25.70M , Total Cash Per Share:     0.49
Total Debt (mrq):  1.83M ,Current Ratio (mrq):    4.80
Book Value Per Share (mrq):   1.02
Operating Cash Flow (ttm):  14.97M
52-Week Change:  -52.14%
Trailing Annual Dividend Yield:  8.30%