Pretty often, the euphoria and the excitement when contemplating young people or fashionable things surrounding us make us maybe blind for the existence of not so fashionable beings and objects with potential and traditions. Seems like sometimes investors also have this approach towards their investments.In this golden age, when the price of spot gold and the shares of the companies in this industry note each day the next in row price record, some people put money in junior exploration companies that yet have to prove their potential and reserves.
At the same time, on the market there are “gold” companies with already proven mineral properties and production facilities.
Maybe this is one of the reasons for Caledonia Mining Corporation (TSE:CAL), (OTC:CALVF) stock to have flat performance during the preceding months. As opposed to some strongly promoted “juniors” traded above $1, at present the price of CAL is swirling within the narrow 52-week range between $0.05 and $0.17 per share.
The last mammoth shares’ stir was noted at the end of last year, when the company announced its third quarter financial and operational results.
Last Monday, after a long time without any significant updates, Caledonia Mining Corporation reminded investors that the company’s potential still exists. A short disclosure about the annual general and special meeting of security holders at the end of May and the filed Form 20-F with the SEC immediately brought investors to spot the company’s shares.
During yesterday’s trading session, the shares of Caledonia Mining Corporation met supreme investor appreciation. On the Toronto Stock Exchange, the price of CAL rose 7.69% between the sessions in exceeding five times the average for the company volume.
On the OTCQB market, the price of CALVF advanced 11.11%, pushed by strong investor bullish mood.
These days it will be seen if that was a signal that the shares of Caledonia Mining Corporation are just gaining momentum and still have to be rushed.
Caledonia Mining Corporation was incorporated in 1992. Five years ago, CAL acquired the Zimbabwean company “Blanket Mine”, owning the operating Blanket Gold Mine. The mine is situated in the Gwanda Greenstone Belt. The gold was first produced in the 1800’s. For the first time, the mining and metallurgical plant operations started in 1906 and up to now the mine produces gold. The company holds also other exploration properties throughout this belt.
Since 2009, Caledonia Mining Corporation disposes over a gold dealer’s license from the Ministry of Finance in Zimbabwe and a gold exporter’s license from the Reserve Bank of Zimbabwe.[BANNER]
For the 3rd quarter of last year, CAL reports invested $1.1 million in capital assets and mineral properties. The company has plans to invest in Blanket in order to sustain gold production at 40,000 ounces per annum.
In addition to the Tanzanian properties and projects, Caledonia Mining Corporation is focused also on its cobalt-copper project in Zambia and platinum-nickel exploration projects in South Africa.
As at the end of 2009, the company reported a consolidated accumulated deficit of $180. 8 million.
For the quarter ended September 30, 2010 CAL generated revenue of $6.3 million from the sale of 4,934 ounces of gold, realizing a gross profit of $2.9 million and a net profit of $1.7 million.
