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A high risk potential high return gold mining company Caledonia mining(Otcqx:Calvf)Was my stock of the year pick for 2011.Unfortunately the stock did not meet the goal of appreciating 100% in a twelve month period.In fact the stock has dropped approximately 50% since i recommended it.Interestingly the company fundamentals have, in my view, continued to improve as the stock price has declined. From the company website; “Caledonia is an african focused mining and exploration company with an operating gold mine in zimbabwe, a copper cobalt exploration project in zambia and two platinum nickel exploration projects in south africa. “The company’s primary asset is the blanket gold mine located in zimbabwe.The mine should produce 40, 000 oz.Of gold in 2012 at a cash cost slightly above $600 per ounce.This is one of the lowest cash costs in africa. The company produced slightly less than 40k ounces last year and that production yielded a gross profit of $29.1 million and cashflow of $17.4 million.The current market cap of the company is around $33 million so the company is trading at 2x cashflow and has a current p/e ratio of around 2.5.This is a profitable gold mining company. So why has the price dropped if the mine performance and financials are performing well.Continued currency debasement.We are seeing continuing signs of this with the ecb cutting rates last week, the bank of england engaging in another round of qe(Money printing, the peoples bank of china cutting rates, and the central bank in denmark adopting a negative rate policy due to euro deposits pouring into the country seeking a safe haven.Robert mugabe is 88 years old and is currently in singapore, it is speculated to receive treatment for prostate cancer.His party zanu pf has in the last few years come under considerable pressure from competing parties in zimbabwe and from pressure by outside entities like its neighbor south africa and the uk to sit down with the opposition and write a new constitution and to hold elections.In fact there have been many reports of inter party fracturing inside zanu pf and even party members splitting from mugabe as politicians position for a post mugabe zimbabwe.The trend is clear in that we and i am sure zanu pf have seen the arab spring revolutions in north africa and the movement in africa away from autocratic rule to more participatory types of government.Nevertheless the pressure is on and it is my view that if free and fair elections are held that the mdc(Movement for democratic change)Would have a greatly increased role in government.It is important to remember that zanu pf and mdc have a tenuous power sharing agreement currently in place.The prime minister of zimbabwe is morgan tsvangirai and that several cabinet members and the central bank president are mdc officials.This is the prime reason that inflation was quashed in the last few years and the economy is growing at 6 8%.I think many outside the country have construed this as resource nationalization.However, if for example, we look at the deal caledonia struck the company made a good deal.The deal is structured as such: “Signing an agreement with the national indigenisation and economic empowerment fund to sell a 16 per cent stake in its blanket mine for us$11.7 million.This is part of a wider accord to transfer 51 per cent of gold mine to indigenous zimbabweans for a total of us$30.1 million.Caledonia has agreed to sell 15 per cent to a local consortium and 10 per cent to the blanket mine employee trust.Meanwhile, a 10 per cent share of the mine will be donated to the gwanda community share ownership trust.The company has agreed to finance the deals at a rate of 10 per cent above the 12 month london interbank offered rate, with the loans being repaid from future dividends. “Basically the company has transferred 51% to various zimbabwean entities for around $30 million which the company will finance by carrying a note on at a rate of 10%+ to be paid out of the profits of the blanket mine.The company management retains day to day operating control of the mine.However, i think the story is compelling and the company is so cheap it could literally buy itself with two years of cashflow.That means it is so cheap it is almost risk free.There are several issues, any one of which if resolved positively could lead to a significant revaluation of the shares.I have been and continue to accumulate shares on any drops to $.07 cents or below. Disclosure:I am long otcqx:Calvf. Thanks for the pick i actually like it but i am trying to discern the timing here which could expose you to some gold cycle risk.No arguments with you on the value here admittedly it is the cheapest producer on many accounting metrics and i see the mill is underutilized but unlocking this value may take time unless they decide to merge or pay a dividend. Assuming no merger or dividend any growth catalyst will have to happen internally around the blanket mine but it is probable exploratory drilling related to any potential internal growth will be limited while the indigenous corporation is paying back the note which will take 2 3 years. Hi john.Great article.I got here doing research on mwana africa.What i like about mwana is the recent cash infusion(At a price significantly above the current share price)As well as the involvement of the chinese, which might deter the govt to strike a tough deal with mwana. Did you do a benchmarking across the 4 zimbabwe gold companies?Caledonia.New dawn.Mwana.African consolidated How do they compare in your opinion?Is zimbabwe especially attractive for miners, or are there similar possibilities for other metals and in other countries of africa? Zimbabwe is certainly attractive for miners as it is significantly underexplored.However the political situation is acting as a deterrent to more investment.This is also a major reason share prices have been suppressed for caledonia and new dawn.Nevertheless for speculators willing to take on the risk i think betting on a favorable reconciliation of the political situation will lead to a re rating higher of the country.I have not really compared the miners, however i will be interviewing ian saunders, the ceo of new dawn, in the next few weeks and will write up my findings.As far as other countries in africa i like banro(Baa)In the drc.I also am looking a t a small compnay that is rehabilitiating a palm oil plantation that used to belong to unilever. John why han’t there been a consortium of individual investors pressuring the company to pay a dividend like there was with mart resources in 2011?I sent mart a letter last year and raised awareness last year cheap ralph lauren on the investor village message board.Personally, i find the money spent on the nama project a total waste of money.The project is greenfield, still needs to be proven up and it is so obvious it would be too big for them and is low grade. I know orosur made the exact same mistakes with exploration and now finally realizing a dividend is the only logical way to unlock value. Imo calvf has a much better operating mine than orosur and can pay a higher dividend rate. John i am very happy you replied.There certainly wasn’t a consensus on the raging bull message board(Unlike mart)And i was virtually scorned off of the board upon the dividend suggestion by quite a few people.This sentiment was discouraging. I believe the power of a high safe dividend in this zero rate environment especially for something pm related will create the only opportunity to receive a very high rate of income on something gold related where holding physical pays you nothing and the industry pays you next the nothing. I would like to collaborate and get the ball rolling even though i will admit i don’t have a large position here thanks to the imbeciles on the rb board.I think we need as much help as we can get because i don’t think cal has a large institutionai ownership/following and i have strong feeling management will be much less receptive to the idea than mart’s management implying we need a majority backing. Yes i do not think the management will be very receptive at all in fact.They are content to exercise warrants as the shares outstanding balloons above 500 million.I only own 100, 000 shares but i am willing to acquire more if the company begins returning cash to shareholders.Let me write something up this weekend and i will post it here.I do know that pinetree capital owns 50 million shares which is 10%.I need to identify other institutions so if we can make a persuasive argument and then get one or more of these institutions on board it may be the way to go to persuade management.I am surprised the momo’s on the board think a dividend is a bad idea.Even if cal paid a one cent dividend the share price would probably go up 50%.Why do they own the stock if not for a return?The cheap ralph Lauren polos company can afford it unless it chooses to throw it away on nama. 20 October 2012 Dear sirs, i am a long time shareholder in caledonia mining.Although not a significant holder of shares i do believe in the company’s prospects and have consistently been adding to my share count on pullbacks in the share price.I have been very impressed with management’s performance at the blanket mine especially considering the various challenges of operating in zimbabwe.It is my view that caledonia management has managed the indigenization process in a way that enabled compliance with government policy while still maintaining other stakeholders interests and allowing for a continued investment case to be made for the company.I also believe in the long term prospects of zimbabwe and it is my personal view that although slow and sometimes uneven the country is moving towards a more prosperous future post mugabe.It is also my contention that the country and its internal politics are not clearly understood in the investment community.I have been most impressed by the financial performance at the operating blanket mine.The most recent financials available show the company enjoying healthy increases in revenue, earnings, and cashflow.This has been the trend for several quarters.Management has stated that,”Once indigenization has been fully implemented, blanket, as a profitable and cash generative gold producer, will be well positioned to take advantage of opportunities that exist for furthergrowth. ” (1)Now that the indigenization process is complete and mine operations are consistent i and other shareholders are curious about where shareholder value creation begins to come into play.The shareprice is not currently reflecting the current operational success much less the future prospects of the company.It is my view that the company’s shareprice is subject to a discount due to the perception that outside investors have towards zimbabawe and does not reflect the true reality or potential of caledonia mining.It is my view, along with other caledonia shareholders, that a dividend would go a long way in changing perceptions of the company among the investment community.In fact a similar situation existed at another african based resource company.A decision was made by mart management to institute a dividend and as you can see by the enclosed chart the company was substantially revalued upward by the market.This created both income and capital gains for the shareholder and put the company on the radar screen of analysts. I would like to request that management develop a plan for shareholder value creation that will accurately reflect the current operational success of caledonia along with its long term prospects.Polomny.
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1921 Baseball ralph lauren donna city polo Season Headlines While babe ruth was the subject of many headlines due to his outstanding season, other baseball players made the news in 1921 for these and other accomplishments: Baby doll jacobson bats.352Despite a belated start he didn’t stick in the majors until he was nearly 27 years of age Baby Doll Jacobson totaled 1, 714 hits and posted a.311 career average over 11 years.In 1921, he racked up a.352 average, 211 hits, five home runs, and 90 RBI.He spent more than nine seasons as a brownie. Polo hosts ny affairall the games of the 1920 world series the first ever”Subway”Series were played in the polo grounds, the home park of both the new york giants and the yankees. Harry heilmann rises to.394Most great hitters display their superiority almost from the first day they don a major league uniform.Harry heilmann was the exception.After his first six seasons, his career batting average was.291.In his next season, 1921, he ralph lauren online store led the american league with a whopping.394 average. George toporcer wears specsin 1921, george toporcer broke a barrier that was nearly as strong as the color line that existed until 1947.Toporcer became the first bespectacled player other than a pitcher to perform in major league baseball.A light hitter whose glovework also left something to be desired, toporcer was never more than a utility man;He hit.264 and had a pair of RBI in 53 at bats in 1921.He did, however, pave the way for other bespectacled players. Jack tobin nets 236 hitsjack tobin was another federal league alumnus who subsequently had a substantial career in the majors.In 1921, tobin corralled 236 hits and scored 132 runs for a browns team that may have had the best lineup in the american league.Only urban shocker, however, kept the browns from having the worst pitching staff in the majors(He won 27). Stan coveleski still going strongstan coveleski was one of the few fortunate pitchers permitted to throw spitballs until they retired.The 1921 season was the fourth in a row in which coveleski won 22 or more games for the indians(He had a 23 13 record that year).His three complete game victories in the 1920 world series were the high point of his career. See the next page for highlights of the 1921 baseball season. To learn more about baseball, see:1920 ralph lauren bambini Baseball Season1922 Baseball SeasonBaseball HistoryHow Baseball WorksHow the Baseball Hall of Fame WorksHow Minor League Baseball Teams WorkBabe Ruth