https://simplywall.st/stocks/ca/mat...f-investments-incs-cvecaf-financial-strength/ What You Must Know About Canaf Investments Inc’s (CVE:CAF) Financial Strength Armando Maloney July 13, 2018 Canaf Investments Inc (CVE:CAF) is a small-cap stock with a market capitalization of US$4.98m. While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. Why is it important? Evaluating financial health as part of your investment thesis is crucial, as mismanagement of capital can lead to bankruptcies, which occur at a higher rate for small-caps. I believe these basic checks tell most of the story you need to know. Nevertheless, this commentary is still very high-level, so I recommend you dig deeper yourself into CAF here. Does CAF produce enough cash relative to debt? CAF’s debt levels have fallen from US$566.85k to US$271.61k over the last 12 months , which comprises of short- and long-term debt. With this debt payback, the current cash and short-term investment levels stands at US$315.41k , ready to deploy into the business. Moreover, CAF has generated cash from operations of US$536.73k during the same period of time, leading to an operating cash to total debt ratio of 197.61%, indicating that CAF’s debt is appropriately covered by operating cash. This ratio can also be a sign of operational efficiency as an alternative to return on assets. In CAF’s case, it is able to generate 1.98x cash from its debt capital. Does CAF’s liquid assets cover its short-term commitments? At the current liabilities level of US$2.72m liabilities, the company has been able to meet these obligations given the level of current assets of US$4.36m, with a current ratio of 1.61x. Usually, for Metals and Mining companies, this is a suitable ratio since there is a bit of a cash buffer without leaving too much capital in a low-return environment. TSXV:CAF Historical Debt July 12th 18 Is CAF’s debt level acceptable? CAF’s level of debt is appropriate relative to its total equity, at 10.45%. CAF is not taking on too much debt commitment, which can be restrictive and risky for equity-holders. We can check to see whether CAF is able to meet its debt obligations by looking at the net interest coverage ratio. A company generating earnings before interest and tax (EBIT) at least three times its net interest payments is considered financially sound. In CAF’s, case, the ratio of 32.89x suggests that interest is comfortably covered, which means that lenders may be inclined to lend more money to the company, as it is seen as safe in terms of payback.
Canaf Group appoints Williams to board, as CFO 2018-07-19 07:57 MT - News Release Mr. Christopher Way reports CANAF ANNOUNCES APPOINTMENT OF DIRECTOR AND CFO Canaf Investments Inc., formerly known as Canaf Group Inc., has appointed Rebecca Williams as a director and chief financial officer effective today. Rebecca, based in the UK, qualified with the Chartered Institute of Management Accounting in 2009 following a first class honours degree in Accounting and Finance from the University of Warwick, United Kingdom. Having spent 8 years progressing her accounting career with the rail industry, Rebecca diversified into corporate transformation having led divestment programmes and functional restructuring. Rebecca joins Canaf at a time where the Corporation is looking to diversify and expand; her locality to the rest of the board, coupled with her ambition, enthusiasm and expertise will benefit the Corporation and its future plans. The Corporation also confirms the resignation of Derick Sinclair as Chief Financial Officer and director. Christopher Way, CEO stated, "Derick leaves his position on the board, and as CFO, after having acted as Canaf's interim CFO, following the sudden passing of Zeny Manalo earlier in the year. In the short time Derick has been with Canaf, he has delivered some positive changes, and we are pleased to know that he will remain available to the Corporation as a consultant when required." About Canaf Canaf is a public company listed on the TSX-V Exchange. Canaf's head office is in Vancouver, Canada, with subsidiary offices in the United Kingdom and South Africa. Canaf owns 100% of Quantum Screening and Crushing (Pty) Ltd., ("Quantum"), a South African based company that owns 100% of Southern Coal (Pty) Ltd., ("Southern Coal"), a company that produces a high carbon, de-volatised anthracite. As of 03 July 2018, Quantum agrees to sell 30% of its shares in Southern Coal for the net consideration of R18million; the transaction will close by 31 August 2018. We seek Safe Harbor. © 2018 Canjex Publishing Ltd. All rights reserved.
https://www.rt.com/business/434184-china-billions-investments-south-africa/ China to invest $15 billion in South African economy Published time: 25 Jul, 2018 07:38 Get short URL © Thomas White / Reuters 1032 1 Beijing has pledged to bankroll $14.7 billion in South Africa and provide the country’s power utility and logistics corporation with loans. The South African rand firmed by more than one percent on news of the investment. The announcement followed a meeting between the two countries’ leaders President Cyril Ramaphosa and Chinese President Xi Jinping in Pretoria. Xi’s state visit took place ahead of the 10th BRICS summit, scheduled for July 25-27. South Africa's biggest city of Johannesburg is set to welcome the heads of Brazil, Russia, India, and China. “China is ready to invest and work with South Africa in various sectors, such as infrastructure development, ocean economy, green economy, science and technology, agriculture, environment and finance,” Ramaphosa told journalists following the meeting. RT ✔@RT_com Chinese producers complained that flood of cheaper products damaging the local industry https://on.rt.com/9avb 11:00 PM - Jul 23, 2018 China launches dumping probe into steel imports from Indonesia, EU, Japan, and South Korea — RT... China’s Commerce Ministry launched an anti-dumping investigation on Monday into stainless steel imports from four countries. Domestic producers have complained that a flood of cheaper products has... rt.com 23 36 people are talking about this Twitter Ads info and privacy “We also recognized that, although trade figures have grown steadily over the past few years, bilateral trade has not reached its potential. We have thus explored avenues for increasing trade, identifying sectors for future investment and promoting tourism.” The parties reportedly signed three major agreements aimed at strengthening mutual trade and identifying sectors for future investment. The presidents also announced plans to relax travel restrictions and loosen visa requirements. The rand grew 1.04 percent to 13.3200 per dollar at 11:45 GMT, its firmest since Thursday. “The rand is firming because our president is making it rain,” Wichard Cilliers, a trader at Pretoria-based Treasuryone told Bloomberg. “He has just secured another big investment, this time from China. That means new FDI inflows.” For more stories on economy & finance visit RT's business section
https://energy.economictimes.indiat...etallurgical-complex-in-south-africa/65165471 Chinese investors plan $10-billion metallurgical complex in South Africa South Africa's President Cyril Ramaphosa said at a joint news conference with Xi on Tuesday that China had committed to invest $14.7 billion in the South African economy, but neither leader mentioned the $10-billion complexREUTERS | July 27, 2018, 17:31 IST NewsletterA A inShare JOHANNESBURG: Chinese investors signed agreements to build a $10-billion metallurgical complex in South Africa during President Xi Jinping's state visit this week and hope to start construction next year, an executive involved in the project and a provincial official told Reuters. South Africa's President Cyril Ramaphosa said at a joint news conference with Xi on Tuesday that China had committed to invest $14.7 billion in the South African economy, but neither leader mentioned the $10 billion complex. Ramaphosa is on a mission to kickstart economic growth after a decade of stagnation and is targeting $100 billion in new investment over five years. The complex, which is still in the planning stage and envisages building a stainless steel plant, a ferrochrome plant and a silicomanganese plant, is a much-needed vote of confidence in the sputtering South African economy. Trade and Industry Minister Rob Davies said on Tuesday that China was considering a metallurgical project in a special economic zone (SEZ), but he did not reveal the scale of the project or timeframe. The executive involved in the project, who did not wish to be named because he was not authorised to speak to the media, said memoranda on the complex were signed before Xi and Ramaphosa gave news conference on Tuesday. "The investors for the SEZ project were in the room when Ramaphosa and Xi spoke to the press," the executive said. Richard Zitha, a project executive at the Musina-Makhado SEZ where the complex will be based, said the project was being led by Chinese state-owned companies, but he declined to name them. He said the Chinese investors would look for Black Economic Empowerment partners to comply with South African rules designed to address racial disparities more than two decades after the end of apartheid. The investors were open to investors from other countries joining at a later stage, he said. "The investors have been in South Africa for around a week and have visited mines to look for inputs for the project," Zitha said. The Musina-Makhado SEZ is in Limpopo province close to South Africa's borders with Mozambique, Zimbabwe and Botswana. The SEZ plans to house plants with a capacity of 3 million tonnes per annum of stainless steel, 3 million tonnes per annum of ferrochrome and 500,000 tonnes per annum of silicomanganese. Those capacity targets are subject to change and will be finalised by the end of the year, the executive said. A coal-fired power plant, coking plant and coal washery will be built alongside the metallurgical plants, a presentation prepared for investors showed. Some of the steel output for the complex has been earmarked for export to China, while other products would be sold to countries in southern Africa, the executive said. South Africa is already a major exporter of metal alloys to China. Investors are hoping to receive the necessary environmental approvals by the end of March and would then start construction, Zitha said.
Canaf finalizes subsidiary Southern Coal B-BBEE deal 2018-08-15 11:12 MT - News Release Mr. Christopher Way reports CANAF ANNOUNCES FINALISATION OF B-BBEE TRANSACTION FOR ITS SOUTH AFRICAN SUBSIDIARY Canaf Investments Inc., formerly known as Canaf Group Inc., has finalized its new Broad-Based Black Economic Empowerment transaction for its South African subsidiary, Southern Coal Pty. Ltd. Further to the announcement dated July 6, 2018, the corporation can confirm that Amandla Amakhulu (RF) Pty. Ltd., a 100% black, privately owned ringfenced company incorporated in South Africa, has acquired 30% of the issued shares of Southern Coal, from Canaf's wholly owned subsidiary, Quantum Screening and Crushing (Pty) Ltd., ("Quantum"), for the value of R18million (C$1.7m approx), with effective date 03 July 2018. Quantum has in return received cumulative, redeemable preference shares in AAM in the amount of the purchase price, R18million (C$1.7million approx). These preference shares shall provide preferential dividends, until all preference shares have been redeemed by AAM. These dividends are subject to terms and conditions requiring AAM to pay Quantum such dividends from any distribution received from Southern Coal and is also subject to further protective conditions to the benefit of Quantum. Christopher Way, Chief Executive Officer of Canaf, states, "the finalisation of the transaction with Amandla Amakhulu marks a significant milestone in a strategic plan to bring Southern Coal's B-BBEE rating in line with our customers requirements. It is with great pleasure to deliver what we have promised to our customers." About Canaf Canaf is a public company listed on the TSX-V Exchange. Canaf's head office is in Vancouver, Canada, with subsidiary offices in the United Kingdom and South Africa. Canaf owns 100% of Quantum Screening and Crushing Pty. Ltd., a South African based company that owns 70% of Southern Coal (Pty) Ltd., ("Southern Coal"), a company that produces a high carbon, de-volatised anthracite. About Southern Coal Southern Coal produces calcined anthracite, a product used primarily as a substitute to coke in sintering processes. Southern Coal produces calcined anthracite by feeding washed anthracite coal through rotary kilns, at temperatures between 900 and 1100 degrees centigrade; the volatiles are driven off and the effective carbon content increased. Southern Coal's two largest clients are African leaders in steel and ferromanganese production. Southern Coal operates near Newcastle, KwaZulu-Natal, where Quantum's three kilns operate; the majority of Southern Coal's feedstock anthracite is supplied from local anthracite mines in KwaZulu-Natal. We seek Safe Harbor. © 2018 Canjex Publishing Ltd. All rights reserved.
Sept 3rd 2018 - R14bn deal between SA and China will enable economic growth - https://citizen.co.za/business/2003...china-will-enable-economic-growth-presidency/ Key notes: South Africa’s Department of Trade and Industry and China’s National Development and Reform Commission also pledged to cooperate on international investment promotion for the African country’s special economic zones and industrial parks, including a 4 600 MW coal-fired plant, a cement plant, and other metallurgical projects. “The projects will see the investment, planning, constructing and operation of coking, ferromanganese, ferrochromium, silico-manganese, stainless steel, supporting administrative service centre and living areas, highways, and a shipping integrated logistics centre among others,” the Presidency said. Sept 4th 2018 - Is metallurgical coal the next big goldmine for Asian investors? - https://sbr.com.sg/utilities/more-news/metallurgical-coal-next-big-goldmine-asian-investors-0 Don't forget this article as it's crucial to seeing how badly China wants to secure metallurgical coal in South Africa: July 27th 2018 - Chinese investors plan $10 billion metallurgical complex in South Africa - https://www.reuters.com/article/us-...urgical-complex-in-south-africa-idUSKBN1KH1E8 CAF is now in it's diversification phase as mentioned in prior news releases over the summer. The metallurgical coal industry is very profitable and those funds can be deployed elsewhere, perhaps in another mining venture. Steel and ferromanganese are created from the product out of Canaf's facility, which are currently at record production due to global demand Sept 10 2018 - Manganese takes pole position in ARM’s earnings surge - http://www.engineeringnews.co.za/ar...in-arms-earnings-surge-2018-09-10/rep_id:4136 Also a reminder that CAF Q3 results will be out in a few weeks or sooner.
Canaf Investments earns $635,257 (U.S.) in nine months 2018-09-26 07:15 MT - News Release Mr. Christopher Way reports CANAF ANNOUNCES FINANCIAL RESULTS FOR Q3 2018 Canaf Investments Inc., formerly known as Canaf Group Inc., has released its financial statements and management discussion and analysis for the nine-month period ended July 31, 2018. Revenue for the nine-month period ended July 31, 2018, increased to $12,137,604 (U.S.), an increase of 43.7 per cent compared with the same period last fiscal year, which generated a net comprehensive income of $635,257 (U.S.) (2017: $622,730 (U.S.)). For more details and discussion on the results, the financial statements and management discussion and analysis can be viewed on SEDAR or the corporation's website. About Canaf Investments Inc. Canaf is a public company listed on the TSX Venture Exchange. Canaf's head office is in Vancouver, Canada, with subsidiary offices in the United Kingdom and South Africa. Canaf owns 100 per cent of Quantum Screening and Crushing, a South African-based company that owns 70 per cent of Southern Coal. We seek Safe Harbor. © 2018 Canjex Publishing Ltd. All rights reserved.
Canaf Group Inc.(CAF.V) Q3 2018 Results. Financials + MD&A Ending July 31st 2018. All information can be found at www.sedar.com TSXV Symbol: CAF - OCTBB Symbol: CAFZF Price: $0.11 Common Shares: 47,426,195 Insider Holdings: 12,304,085 or 26% - Majority Owned By CEO & Family Warrants/Options: 0 Website: www.canafgroup.com Financials (All In US Dollars) ASSETS Cash: $1,252,240 Trade Receivables: $1,682,075 Sales Tax Receivable: $20,078 Inventories: $685,983 Prepaid Expenses: $25,496 Property & Equipment: $808,845 Intangible: $1 Total Assets: $4,474,719 LIABILITIES Trade Payables: $1,684,853 Sales Tax Payable: -$859 Income Tax Payable: $72,029 Current Portion Of Bank Loan: $174,801 - Due Jan 2019 Total Liabilities: $1,930,824 Q1-Q3 Performance Sales: $12,137,604 Gross Profit: $933,187 G&A Expenses: ($444,535) Interest Income: $53,645 Income Tax Expense: ($26,192) Foreign Currency Gain: $119,153 Net Income For 2018: $635,257 Management Discussion & Highlights OVERALL PERFORMANCE AND OUTLOOK Revenues for the nine months were $12,137,604 (2017 - $8,443,667) a 43.7% increase, and the Corporation continues to be profitable with gross profits of $933,187 (2017 - $889,225) a 4.9% increase and net income for nine month period ended July 31, 2018 of $516,105 (2017 - $595,716) a 13% reduction. While revenues and gross margin have grown, increased cost of sales produced smaller gross margin percentages, 2018 7.7% (2017 10.5 %). The reduction in the gross margin is mainly due to major maintenance and re-commissioning costs during the period as well as various one off costs. The Corporation expects to continue to operate profitably into Q4, however Revenue is expected to reduce slightly as demand for calcine reduces slightly due to a slowing in manganese and steel production downstream of the supply chain. The Corporation cannot be sure of how long this slight reduction in demand will continue for, however remains confident that Southern Coal will continue to operate profitably as it continues to work with a potential new customer with the intention to secure a new long-term supply contract. Whilst continuing to ensure that Southern Coal continues to generate free cash flow, the Corporation is also actively exploring new opportunities in South Africa and its neighbours, as it accumulates cash and reduces its gearing; from January 2019 Southern Coal will have completed the repayment of the 14 million Rand loan with ABSA which will add approximately $26,000 per month to its cash-flow. The Corporation’s B-BBEE transaction for the sale of 30% of Quantum’s shares in Southern Coal for 18 million Rand was completed during the quarter. This marks a significant milestone in the strategic plan to bring Southern Coal’s BBBEE rating in line with its existing and potential new customers’ requirements. The revised effective date for the transaction is 01 August 2018. BROAD-BASED BLACK ECONOMIC EMPOWERMENT TRANSACTION (B-BBEE) As part of Southern Coal’s B-BBEE transformation program, Amandla Amakhulu (Pty) Ltd., (“AAM”), a 100% black, privately owned, and ringfenced, company incorporated in South Africa, acquired 30% of the issued shares of Southern Coal, from Canaf’s wholly owned subsidiary, Quantum, for the value of 18 million Rand. The revised effective date for the transaction is 01 August 2018. Quantum in return received cumulative, redeemable preference shares in AAM in the amount of the purchase price. These preference shares shall provide preferential dividends, until redeemed by AAM. These dividends will be secured by an irrevocable direction from AAM to Southern Coal to pay Quantum such dividends from any distribution to AAM. CLAIM AGAINST KILEMBE MINES LIMITED In August 2006, Canaf, then known as Uganda Gold Mining, announced the termination of any further investment into its Kilembe Copper-Cobalt Project in Uganda. Since 2007, the Corporation has been engaged in an arbitration with Kilembe Mines Limited, (“KML”), whereby the Corporation seeks general damages, special damages and costs of the arbitration from KML for breach of contract. The legal work, carried out by MMAKS Advocates, Kampala, against KML is at no cost to the Corporation, but any award in won by MMAKS efforts will be distributed to both MMAKS and Canaf. Despite the fact that the claim against KML Corporation remains active, the Corporation is unable to give an indication of either the quantum or any likely date by which the arbitration will be concluded. Sales Revenue for the nine months was $12,137,604 (2017 - $8,443,667), 44% increase due to high demand for Southern Coal's calcine product from both of its main customers, particularly in Q2. The Corporation is confident that Sales will remain at profitable levels in to Q4, however expects to see a slight reduction in comparison to Q3, as demand falls off slightly. Expenses Expenses for the nine months were $444,535 (2017 - $237,288) an increase of $89,286, 25%, primarily due to increased costs relating to the B-BBEE program and major maintenance costs on Southern Coal’s old calcining facilities. Other one off expenses that were incurred during the period were legal costs relating to the Corporation’s name change, as well as back dated rent for Southern Coal’s premises which were negotiated at approximately $20,000. General administrative and finance expenses for the nine month period were $418,788 (July 31, 2017 - $312,829) an unfavorable variance of $105,959, primarily due to increased involvement in South Africa’s B-BBEE program and increased activity resulting in higher management fees and office expenses. The Corporation incurred extra management and consultant fees due to the passing of its previous CFO, Zeny Manalo as well as transitional costs associated with the resignation and appointment of its CFO during the year. The Corporation does not expect any further extra ordinary management or consultant fees going forward. Comprehensive Income The Corporation is not subject to currency fluctuations in its core activities however the Corporation is subject to transactions in various currencies and the volatility in international currency markets does have an impact on some costs and the translation into US$ the reporting currency of the Corporation. The current period comprehensive gain on foreign exchange in the amount of $119,153 (2017 - $27,014) is primarily as a result of the translation into US$ the reporting currency. As at July 31, 2018 the Corporation has net comprehensive gain of $635,257 (July 31, 2017 - $622,730.) The Corporation does not hedge net asset translation movements. LIQUIDITY AND CAPITAL RESOURCES At July 31, 2018, the Corporation had cash of $1,252,240 (October 31, 2017 - $453,609) and working capital of $1,735,049 (October 31, 2017 - $1,098,726). Surplus cash and cash equivalents are deposited in interest accruing accounts. Working capital components include cash in current or interest bearing accounts, trade and other receivables, sales tax receivable, inventories and prepaid expenses and deposits, trade and other payables, sales tax payable, income tax payable, and current portion of long-term debt. Trade receivables and trade payables are expected to increase or decrease as sales volumes change.
Article: Anthracite Coal Market Heating Up Due To Global Demand & Supply Issues http://news-australia-today.com/ind...s-business-development-and-industry-analysis/ Anthracite Market Analysis to 2023 | Top 10 Companies, Trends, Growth Factors, Business Development and Industry Analysis SEPTEMBER 28, 2018 BY MARKET RESEARCH FUTURE IN ANTHRACITE MARKET, MARKET · 0 COMMENT Anthracite is the high-level ranking coal because it is rigid, carbon concentrated, has less moisture content, and burns efficiently than other coals. Due to its excess carbon storage and low volatiles, anthracite is more reactive and efficient with respect to energy released than the lower–ranked coals and consequently has a lower environmental impact due to the lower greenhouse gas emissions. Urbanization of the emerging economies is resulting in the largest migration of people in human history. The infrastructure required to support the resulting rapid growth is creating unprecedented demand for steel and the anthracite coal needed to produce it. Combined with declining coal reserves it is expected that there will be long-term global shortage of metallurgical coals. Approximately 500 million tons of new annual metallurgical coal production will be required by the end of the decade to service the growth in demand. Get sample report now @ https://www.marketresearchfuture.com/sample_request/2742 Global Top 10 Key Players Key players of the global Anthracite market are: Blaschak Coal Corporation (US), Lehigh Anthracite (US), Atlantic Coal Plc. (UK), Atrum Coal Ltd (Australia), Celtic Energy (US), Vietnam National Coal-Mineral Industries Group (US), Sadovaya Group (Europe), Vostok Coal (Russia), Siberian Anthracite (Russia), Robindale Energy Services, Inc. (U.S) and others. Anthracite Market – Intended Audience Anthracite manufacturers Traders and distributors of Anthracite Production Process industries Potential investors Raw material suppliers Nationalized laboratory Regional analysis: The global anthracite market is classified on the basis of mixed geographic segmentation which involves regions such as America, Europe, Asia-Pacific, Middle East and Africa. Out of all, Asia Pacific Anthracite market is largest market owing to robust industry growth of application industry in China, Japan and India. At a time Vietnam and Ukraine were the biggest exporters of anthracite are quickly decreasing from the market with their combined exports. The rapid decrease in anthracite exports appears unable to be supplied from other major exporters in Russia and South Africa, resulting in a tight supply and demand dynamic, creating a strong price environment. China is major dominating country owing to large scale production of end user industries such as metallurgy and power & energy. Russia led to the second position in terms of producing anthracite followed by Ukraine, Vietnam, Korea, South Africa, US, and others. While the major exporter of anthracite in decreasing order are Vietnam, Russia, China, North Korea, South Africa, US, Germany, UK, and others. On the other hand the major importers of anthracite in decreasing order are China, Japan, South Korea, France, Belgium, Bulgaria, Brazil, and others. Browse Complete Report at https://www.marketresearchfuture.com/reports/anthracite-market-2742 Mining of high-quality anthracite occurs mainly in China, Russia, South Africa, Ukraine, the United States and Vietnam. There is sizeable production in some western European countries, but the quality is primarily suitable only for power generation. In terms of exporting, countries such as Russia and Ukraine have become the dominant suppliers to world markets over the past seven years due to their lower production costs. In Asia, Russia is constantly replacing China and Vietnam in various markets. In the western region, Ukraine is becoming the important anthracite supplier. Russia has emerged in recent years as the key anthracite supplier to Europe and other markets around the world. Production in Ukraine has been affected by the conflict in the east of the country since 2014 but may recover from now on. Vietnam’s position as world supplier is continuous decaling due to its high cost producing charges. Other sources such as South Africa and the United States focus primarily on their domestic markets, with small exports. Segmentation The global Anthracite market is majorly segmented on the basis of application, end users and region. Based on application of Anthracite the market is segmented into fuel, steel making, sinter plants, indurating furnaces, furnace coal replacement, and others. Based on end user the market segmented steel , energy & power, bricks, silicon & glass, synthetic fuels, others and based on region market is segmented into North America, Europe, APAC, Latin America, Middle East & Africa. The post Anthracite Market Analysis to 2023 | Top 10 Companies, Trends, Growth Factors, Business Development and Industry Analysis appeared first on Herald Keeper.
https://simplywall.st/stocks/ca/mat...vecaf-18-roe-strong-compared-to-its-industry/ Is Canaf Investments Inc’s (CVE:CAF) 18% ROE Strong Compared To Its Industry? Kyle Sanford October 6, 2018 Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). We’ll use ROE to examine Canaf Investments Inc (CVE:CAF), by way of a worked example. Canaf Investments has a ROE of 18%, based on the last twelve months. One way to conceptualize this, is that for each CA$1 of shareholders’ equity it has, the company made CA$0.18 in profit. Check out our latest analysis for Canaf Investments How Do You Calculate Return On Equity? The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders’ Equity Or for Canaf Investments: 18% = US$462k ÷ US$3m (Based on the trailing twelve months to July 2018.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. It is all earnings retained by the company, plus any capital paid in by shareholders. Shareholders’ equity can be calculated by subtracting the total liabilities of the company from the total assets of the company. What Does Return On Equity Mean? ROE looks at the amount a company earns relative to the money it has kept within the business. The ‘return’ is the amount earned after tax over the last twelve months. A higher profit will lead to a a higher ROE. So, all else equal, investors should like a high ROE. That means ROE can be used to compare two businesses. Does Canaf Investments Have A Good Return On Equity? By comparing a company’s ROE with its industry average, we can get a quick measure of how good it is. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. As you can see in the graphic below, Canaf Investments has a higher ROE than the average (11%) in the metals and mining industry. TSXV:CAF Last Perf October 5th 18 That’s clearly a positive. We think a high ROE, alone, is usually enough to justify further research into a company. One data point to check is if insiders have bought shares recently. Why You Should Consider Debt When Looking At ROE Virtually all companies need money to invest in the business, to grow profits. That cash can come from issuing shares, retained earnings, or debt. In the first and second cases, the ROE will reflect this use of cash for investment in the business. In the latter case, the debt used for growth will improve returns, but won’t affect the total equity. That will make the ROE look better than if no debt was used. Combining Canaf Investments’s Debt And Its 18% Return On Equity While Canaf Investments does have a tiny amount of debt, with debt to equity of just 0.069, we think the use of debt is very modest. The fact that it achieved a fairly good ROE with only modest debt suggests the business might be worth putting on your watchlist. Conservative use of debt to boost returns is usually a good move for shareholders, though it does leave the company more exposed to interest rate rises. The Key Takeaway Return on equity is useful for comparing the quality of different businesses. In my book the highest quality companies have high return on equity, despite low debt. All else being equal, a higher ROE is better.
CAF Insider Buying https://ceo.ca/api/sedi?insider=&symbol=CAF&date=&transaction=&amount=&undefined[company_symbol]=CAF DateIssuerInsiderTransactionAmountNew TotalRecent filingsFiling date: 2018-10-24 Transaction: 2018-10-24$CAF Canaf Investments Inc. (formerly Canaf Group Inc.)Way, Christopher Robert 4 - Director of Issuer, 5 - Senior Officer of Issuer Common Shares 10 - Acquisition or disposition in the public market$7,440 +93,000 vol $0.08 each4,850,800Older filingsFiling date: 2017-04-27 Transaction: 2017-04-27$CAF Canaf Group Inc.Way, David 4 - Director of Issuer Options 52 - Expiration of options -500,000 vol0Filing date: 2016-12-17 Transaction: 2016-12-16$CAF Canaf Group Inc.Way, Christopher Robert 4 - Director of Issuer, 5 - Senior Officer of Issuer Common Shares 10 - Acquisition or disposition in the public market$4,500 +75,000 vol $0.06 each4,757,800Filing date: 2016-12-15 Transaction: 2016-12-14$CAF Canaf Group Inc.Way, Christopher Robert 4 - Director of Issuer, 5 - Senior Officer of Issuer Common Shares 10 - Acquisition or disposition in the public market$600.00 +10,000 vol $0.06 each4,682,800Filing date: 2016-12-10 Transaction: 2016-12-09$CAF Canaf Group Inc.Way, Christopher Robert 4 - Director of Issuer, 5 - Senior Officer of Issuer Common Shares 10 - Acquisition or disposition in the public market$60.00 +1,000 vol $0.06 each4,672,800Filing date: 2016-12-08 Transaction: 2016-12-08$CAF Canaf Group Inc.Way, Christopher Robert 4 - Director of Issuer, 5 - Senior Officer of Issuer Common Shares 10 - Acquisition or disposition in the public market$1,210 +22,000 vol $0.055 each4,671,800Filing date: 2016-12-08 Transaction: 2016-12-07$CAF Canaf Group Inc.Way, Christopher Robert 4 - Director of Issuer, 5 - Senior Officer of Issuer Common Shares 10 - Acquisition or disposition in the public market$275.00 +5,000 vol $0.055 each4,649,800Filing date: 2016-12-08 Transaction: 2016-12-07$CAF Canaf Group Inc.Way, Christopher Robert 4 - Director of Issuer, 5 - Senior Officer of Issuer Common Shares 10 - Acquisition or disposition in the public market$700.00 +14,000 vol $0.05 each4,644,800Filing date: 2015-10-19 Transaction: 2015-10-19$CAF Canaf Group Inc.Way, Christopher Robert 4 - Director of Issuer, 5 - Senior Officer of Issuer Common Shares 11 - Acquisition or disposition carried out privately$31,500 +450,000 vol $0.07 each4,630,800
more insider buying https://ceo.ca/api/sedi?insider=&symbol=CAF&date=&transaction=&amount=&undefined[company_symbol]=CAF Filing date: 2018-11-14 Transaction: 2018-11-14$CAF Canaf Investments Inc. (formerly Canaf Group Inc.)Way, Christopher Robert 4 - Director of Issuer, 5 - Senior Officer of Issuer Common Shares 10 - Acquisition or disposition in the public market$7,950 +100,000 vol $0.0795 each4,950,800Older filingsFiling date: 2018-10-24 Transaction: 2018-10-24$CAF Canaf Investments Inc. (formerly Canaf Group Inc.)Way, Christopher Robert 4 - Director of Issuer, 5 - Senior Officer of Issuer Common Shares 10 - Acquisition or disposition in the public market$7,440 +93,000 vol $0.08 each4,850,800Filing date: 2017-04-27 Transaction: 2017-04-27$CAF Canaf Group Inc.Way, David 4 - Director of Issuer Options 52 - Expiration of options -500,000 vol0Filing date: 2016-12-17 Transaction: 2016-12-16$CAF Canaf Group Inc.Way, Christopher Robert 4 - Director of Issuer, 5 - Senior Officer of Issuer Common Shares 10 - Acquisition or disposition in the public market$4,500 +75,000 vol $0.06 each4,757,800Filing date: 2016-12-15 Transaction: 2016-12-14$CAF Canaf Group Inc.Way, Christopher Robert 4 - Director of Issuer, 5 - Senior Officer of Issuer Common Shares 10 - Acquisition or disposition in the public market$600.00 +10,000 vol $0.06 each4,682,800Filing date: 2016-12-10 Transaction: 2016-12-09$CAF Canaf Group Inc.Way, Christopher Robert 4 - Director of Issuer, 5 - Senior Officer of Issuer Common Shares 10 - Acquisition or disposition in the public market$60.00 +1,000 vol $0.06 each4,672,800Filing date: 2016-12-08 Transaction: 2016-12-08$CAF Canaf Group Inc.Way, Christopher Robert 4 - Director of Issuer, 5 - Senior Officer of Issuer Common Shares 10 - Acquisition or disposition in the public market$1,210 +22,000 vol $0.055 each4,671,800Filing date: 2016-12-08 Transaction: 2016-12-07$CAF Canaf Group Inc.Way, Christopher Robert 4 - Director of Issuer, 5 - Senior Officer of Issuer Common Shares 10 - Acquisition or disposition in the public market$275.00 +5,000 vol $0.055 each4,649,800Filing date: 2016-12-08 Transaction: 2016-12-07$CAF Canaf Group Inc.Way, Christopher Robert 4 - Director of Issuer, 5 - Senior Officer of Issuer Common Shares 10 - Acquisition or disposition in the public market$700.00 +14,000 vol $0.05 each4,644,800Filing date: 2015-10-19 Transaction: 2015-10-19$CAF Canaf Group Inc.Way, Christopher Robert 4 - Director of Issuer, 5 - Senior Officer of Issuer Common Shares 11 - Acquisition or disposition carried out privately$31,500 +450,000 vol $0.07 each4,630,800
Canaf announces full repayment of term loan and award of B-BBEE rating 2019-01-21 10:03 MT - News Release Mr. Christopher Way reports CANAF ANNOUNCES FULL REPAYMENT OF TERM LOAN AND AWARD OF B-BBEE RATING Canaf Investments Inc.'s majority-owned South African subsidiary, Southern Coal Pty Ltd., has fully repaid a term loan. Canaf has been awarded a level 4 broad-based black economic empowerment (B-BBEE) rating. On 07 January 2019, Southern Coal (Pty) Ltd., ("Southern Coal") the Corporation's majority owned South African subsidiary, made its final payment for the 14 million Rand loan from ABSA bank, which was drawn down in February 2015. Repayment of this loan now releases Southern Coal from monthly instalments of approximately 392,000 Rand (approx. C$37,000 or US$28,000), which the Corporation plans to allocate to future diversification or expansion projects. On 21 January 2019, and further to the Corporation's announcement on 15 August 2018, Southern Coal was awarded a Level 4, B-BBEE rating. Christopher Way, Chief Executive Office of Canaf, states, "Achieving a Level 4 rating is a proud achievement for Southern Coal, and now frees up the company's ability to engage in long-term agreements with existing and new potential customers." The achievement of both the repayment of debt and the award of a Level 4 B-BBEE rating further strengthens the Corporation's financial and strategic position, as it looks at new investment and expansion opportunities. About Canaf Canaf is a public company listed on the TSX-V Exchange. Canaf's registered office is in Vancouver, Canada, with subsidiary offices in the United Kingdom and South Africa. Canaf owns 100% of Quantum Screening and Crushing (Pty) Ltd., ("Quantum"), a South African based company that owns 70% of Southern Coal (Pty) Ltd., ("Southern Coal"), a company that produces a high carbon, de-volatised (calcined) anthracite. About Southern Coal Southern Coal produces calcined anthracite, a product used primarily as a substitute to coke in sintering processes. Southern Coal produces calcined anthracite by feeding washed anthracite coal through rotary kilns, at temperatures between 900 and 1100 degrees centigrade; the volatiles are driven off and the effective carbon content increased. Southern Coal's two largest clients are African leaders in steel and ferromanganese production. Southern Coal operates near Newcastle, KwaZulu-Natal, where Quantum's three kilns operate; the majority of Southern Coal's feedstock anthracite is supplied from local anthracite mines in KwaZulu-Natal. We seek Safe Harbor. © 2019 Canjex Publishing Ltd. All rights reserved.
CAF numbers are out. Asset/Debt ratio keeps looking better and better, yet we trade at a lower price compared to last year? Some USD/Rand fluctuations, but we know that they paid off all the bank debt in Q1 2019 so odds are another profitable quarter will be announced next month. Year Revenue($USD) Profit/Loss $USD) Assets ($USD) Liabilities ($USD) Asset/Liability Ratio Net Asset Value ($USD) 2007 $6,193,884 -$721,465 $7,203,120 $4,822,980 1.49 $2,380,140 2008 $9,038,397 -$2,639,324 $3,134,842 $3,336,654 0.94 -$201,812 2009 $4,561,417 -$539,609 $3,270,899 $3,239,579 1.01 $31,320 2010 $11,807,383 $551,552 $3,734,633 $3,006,923 1.24 $727,710 2011 $13,336,725 $574,766 $3,704,897 $2,673,936 1.39 $1,030,961 2012 $10,882,074 $126,169 $4,029,063 $2,871,933 1.40 $1,157,130 2013 $14,969,633 $557,797 $4,141,224 $2,426,297 1.71 $1,714,927 2014 $13,257,224 $201,330 $3,597,561 $1,681,304 2.14 $1,916,257 2015 $9,156,927 -$285,218 $3,512,225 $1,881,186 1.87 $1,631,039 2016 $4,703,528 -$162,065 $2,729,318 $1,260,344 2.17 $1,468,974 2017 $10,699,117 $439,664 $3,315,232 $1,406,594 2.36 $1,908,638 2018 $14,673,658 $298,144 $4,774,437 $1,178,597 4.05 $3,595,840
Canaf Investments earns $623,884 (U.S.) in fiscal 2018 2019-02-28 08:24 MT - News Release Mr. Christopher Way reports CANAF ANNOUNCES FINANCIAL RESULTS FOR YEAR ENDED 31 OCTOBER 2018 Canaf Investments Inc. has released its financial statements, and management discussion and analysis for the year ended Oct. 31, 2018. For the year, revenue increased to $14,673,658 (U.S.) from $10,699,117 (U.S.) the previous year, and the corporation recorded a net profit of $623,884 (U.S.) in comparison to $541,808 (U.S.) the previous year. Earnings before interest, taxes, depreciation and amortization for the year was recorded at $1,028,094 (U.S.) or approximately $1.35-million. Christopher Way, chief executive officer, states: "The annual results reflect another solid performance from the corporation's majority owned subsidiary, Southern Coal. During they year we successfully completed a strategic and important Broad-Based Black Empowerment transaction and we are now a cash-flow-positive business with zero long-term liabilities. The corporation will continue to focus its attention at making efficiencies within its South African business, as well as looking for new markets and diversification opportunities." For more details and discussion on the results, the financial statements and management discussion and analysis can be viewed on SEDAR or the company's website. About Canaf Investments Inc. Canaf is a public company listed on the TSX Venture Exchange. Canaf's registered office is in Vancouver, B.C., Canada, with subsidiary offices in the United Kingdom and South Africa. Canaf owns 100 per cent of Quantum Screening and Crushing Pty. Ltd., a South African-based company that owns 70 per cent of Southern Coal. About Southern Coal Southern Coal produces calcined anthracite, a product used primarily as a substitute to coke in sintering processes. Southern Coal produces calcined anthracite by feeding washed anthracite coal through rotary kilns, at temperatures between 900 and 1,100 degrees centigrade; the volatiles are driven off and the effective carbon content increased. We seek Safe Harbor. © 2019 Canjex Publishing Ltd. All rights reserved.
Canaf Investments Inc. 2018 Year End Results. Financials + MD&A Ending October 31st 2018. All information can be found at www.sedar.com Q1 2019 result will be released end of March 2019. TSXV Symbol: CAF - OCTBB Symbol: CAFZF Price: $0.09 Common Shares: 47,426,195 Insider Holdings: 12,304,085 or 26% - Majority Owned By CEO & Family Warrants/Options: 0 Website: www.canafgroup.com Financials (All In US Dollars) ASSETS Cash: $552,351 Trade Receivables: $1,240,730 Sales Tax Receivable: $4,559 Inventories: $836,551 Prepaid Expenses: $21,896 Property & Equipment: $868,059 Due From Non-Controlling Interest: $1,250,290 Intangible: $1 Total Assets: $4,774,437 (2017 - $3,315,232) LIABILITIES Trade Payables: $1,088,227 Income Tax Payable: $11,958 Bank Loan: $78,412 - Paid Jan 2019 as per the company press release Total Liabilities: $1,178,597 (2017 - $1,406,594) Asset/Debt Ratio: 4.05:1 2018 Performance Sales: $14,673,658 Gross Profit: $1,171,328 Net Income: $298,144 Canaf Investments has added $737,808USD ($959,150CAD @ 1.30 Exchange) in net income over the last 8 quarters, established new business relationships with the acquisition of their BBEEE certificate that took a long time to receive, are diversifying the company as per the MD&A below, yet the price is still where it was two years ago, thus the price/earnings ratio is also very low. It says below in the MD&A that shareholders equity was pegged at $4.6 million CAD, which is today’s current market cap value. Almost all companies on the TSX/TSXV/CSE trade far beyond this value, thus giving Canaf an even bigger discount for no reason. Read all MD&A information below as there are numerous things happening with the company in 2019. There were also one time expenses such as BBEEE and company name change that increased expenses just for 2018. MD&A Highlights (Management Discussion) The Corporation reports another strong year of sales and earnings with revenues for the twelve months of $14,673,658 (2017: $10,699,117) a 37.1% increase, and gross profits of $1,171,328 (2017: $1,223,110) a 4.1% decrease. Net income for the year increased 15.1% to $623,884 (2017: $541,808). An important achievement of the Corporation during the year was the sale of 30% of Quantum’s shares in Southern Coal for 18 million Rand, which enabled, and contributed, to Southern Coal achieving a Level 4 Broad-Based Black Economic Empowerment (“B-BBEE”) rating. Achieving this rating will enable Southern Coal to engage in long-term supply contracts with its customers. The Corporation can confirm that long-term (24 month) contracts with both its existing main customers should be renewed during Q2 and Q3, 2019. During Q1 2019, the Corporation is pleased to confirm that a trial load of its calcined product was delivered to a new potential and significant customer. Trials will be ongoing into Q2 2019, and should this convert to an ongoing supply, the Corporation feels that there is potential to return to the revenue levels of the year ended October 31, 2018. The Corporation expects to continue to operate profitably into 2019, however management expects revenues to be significantly reduced in comparison to the year ended October 31, 2018, mostly due to global pressure on the steel and manganese markets, which subsequently filters back to demand for Southern Coal’s product. While revenues and net income have grown, gross margin suffered as Southern Coal experienced increased costs of production primarily due to increased cost of its anthracite feedstock material. The Corporation expects its gross margins to remain squeezed into next year. In addition to pressure from suppliers, the Corporation carried out major essential maintenance and re-commissioning during the year on one of its old calcining plants. During Q1 2019, Southern Coal made its final payment for the 14 million Rand loan from ABSA bank, which was drawn down in February 2015. Repayment of this loan now releases Southern Coal from monthly installments of approximately 392,000 Rand (approx. C$37,000 or US$28,000), which the Corporation plans to allocate to future diversification or expansion projects. As of January 2019, the Corporation has zero long-term liabilities. Whilst the Corporation reports another profitable and financially positive year, the board can confirm that it is actively looking for new opportunities that will offer long-term growth potential for shareholders, be it related to its existing anthracite calcining operation in South Africa or another new, and un-related, sector. With zero long-term debt, a strong balance sheet, and a cash flow positive business in South Africa, the Corporation believes it is in a good position to do so. In the meantime, the Corporation will continue to grow its shareholder’s equity, which as of October 31, 2018, stands at approximately $3.5 million (C$4.6 million). BROAD-BASED BLACK ECONOMIC EMPOWERMENT TRANSACTION (B-BBEE) As part of Southern Coal’s B-BBEE transformation program, Amandla Amakhulu (Pty) Ltd, (“AAM”), a 100% black, privately owned, and ringfenced, company incorporated in South Africa, acquired 30% of the issued shares of Southern Coal, from Canaf’s wholly owned subsidiary, Quantum, for the value of 18 million Rand. The financial effective date for the transaction is 01 August 2018. Quantum in return received cumulative, redeemable preference shares in AAM in the amount of the purchase price. These preference shares shall provide preferential dividends, until redeemed by AAM. These dividends will be secured by an irrevocable direction from AAM to Southern Coal to pay Quantum such dividends from any distribution to AAM. CLAIM AGAINST KILEMBE MINES LIMITED In August 2006, Canaf, then known as Uganda Gold Mining, announced the termination of any further investment into its Kilembe Copper-Cobalt Project in Uganda. Since 2007, the Corporation has been engaged in an arbitration with Kilembe Mines Limited, (“KML”), whereby the Corporation seeks general damages, special damages and costs of the arbitration from KML for breach of contract. The legal work, carried out by MMAKS Advocates, Kampala, against KML is at no cost to the Corporation, but any award in won by MMAKS efforts will be distributed to both MMAKS and Canaf. Despite the fact that the claim against KML Corporation remains active, the Corporation is unable to give an indication of either the quantum or any likely date by which the arbitration will be concluded. Revenue for the year was $14,673,658 (2017: $10,699,117), 37.1% increase due to high demand for Southern Coal's calcine product from both of its main customers. Sales for the year-end October 31, 2019 are expected to reflect a significant reduction in comparison to the current year, assuming no new customers are secured. The expected reduction in sales is primarily down to global uncertainties in the steel and manganese markets that Southern Coal supplies in to. Despite the expected reduction in sales, management can confirm that it is working on ensuring that gross margins improve by implementing efficiencies in Sothern Coal’s operations. Expenses for the year were $587,312 (2017: $504,788) an increase of $82,524, 16.3%, primarily due to increased costs relating to the B-BBEE program ($75,573) and necessary legal and administrative charges in relation to the Corporations name and jurisdiction changes in Canada, offset by reduced interest on the bank loan. The Corporation incurred extra management and consultant fees due to the passing of its previous CFO, Zeny Manalo as well as transitional costs associated with the appointment and resignation of Derick Sinclair, and appointment of Rebecca Williams as CFO during the year. The Corporation does not expect any further extra ordinary management or consultant fees going forward. Additional details of general and admin expenses can be found in the table below. Finance Cost for the year were $27,853 (2017 $86,837) a favorable variance of $58,984 (68%) as a result of nearing the end of the loan period. At October 31, 2018, the Corporation had cash of $552,351 (October 31, 2017: $453,609) and working capital of $1,477,490 (October 31, 2017: $1,098,726). Surplus cash and cash equivalents are deposited in interest accruing accounts. Working capital components include cash in current or interest bearing accounts, trade and other receivables, sales tax receivable, inventories and prepaid expenses and deposits, trade and other payables, sales tax payable, income tax payable, and current portion of long-term debt. Trade receivables and trade payables are expected to increase or decrease as sales volumes change
Heads up. This has been building cause for 8 years or more. Over the last 3 years it has been finding higher supports. Below is CAF traded on the Toronto TSXV exchange. It is also available in the U.S. on the OCTBB as CAFZF. Monthly bars:
It's actually amazing how CAF has cleaned itself up over the last 24 months, yet the market has not taken notice just yet.
It may not be too much longer. As of now, based on a one-cent-box by 3-box-reversal point & figure count, CAF has enough fuel in the tank for a move to 96 cents, a 967% move, a near 10-bagger.
Thanks for posting all the charts on AXM and CAF. 96 cents, that would be amazing! Well if they can get a cash flow positive gold project in South Africa, that would change things quickly.
