CAF.V – Canaf Group Inc. Due Diligence Report Price: $0.07 Common Shares: 47,426,195 Options/Warrants: Nil Insider Holdings: 15,391,328 or 32.5% as per www.Sedi.ca Website: www.canafgroup.com Financials (All in US Dollars – Should Be Converted into CDN Dollars for accurate value) ASSETS Cash: $595,806 Trade Receivables: $1,298,566 Tax Receivable: $5,904 Inventories: $393,373 Prepaid Expenses: $28,526 Property, Plant & Equipment: $1,197,093 Intangible: $1 Total Assets: $3,519,269 ($4,700,511 CAD as of March 20th 2017) LIABILITIES Trade Payables: $1,130,333 Income Tax: $939 Current Portion of bank loan: $225,758 Total Bank Loan: $403,126 Deferred Tax: $91,918 Total Liabilities: $1,852,074 ($2,473,722 CAD as of March 20th 2017) Asset/Debt Ratio: 1.9:1 Revenue over the last 4 quarters Date – Sales - Profit(Loss) Q1 2017 - $2,991,706 – Net Income of $197,691 Q4 2016 - $1,796,330 – Net Income of $136,764 Q3 2016 - $1,126,582 – Net Income of $19,945 Q2 2016 - $757,843 – Net Loss of ($41,382) From MD&A: The summary above demonstrates a return of the Corporation to three consecutive quarters of increasing revenue and net profit. The increase in sales has been generated by an increase in Quantum’s product demand, which has been caused by not only a reduction of availability of coke, and coke related products within South Africa, but also due to a slight return to confidence in the local steel and manganese markets. Despite the Corporation feeling that there remains room for more confidence to return to these markets, the outlook for the remainder of the year remains relatively strong. MD&A Highlights The Corporation is very pleased to confirm strong results for the 3-month period end January 31, 2017, as forecasted. The results demonstrate the continued strong turnaround of the Corporation’s South African business, Quantum. Revenue for the 3-month period increased to $2,991,706; an increase of 193% in comparison to the same quarter last fiscal year, and up 67% from the previous quarter ended January 31, 2017. The Company expects sustained levels of revenue during Q2 2017, as demand for Quantum’s product remains strong in South Africa. During the quarter, the Corporation recorded a net income of $197,691 (C$259,579), in comparison to a net loss of $294,482 for the same quarter the previous year. Adjusted EBITDA rose to $569,300 (C$747,517) for the quarter. The Corporation is currently in discussions with major customers to secure new long-term contracts for a period of 2 years, which will provide security of sales, and enable the business to further invest in cost saving modifications for the operation. The recent results further confirm the Corporation’s strong position as a carbon reductant supplier in South Africa. Quantum is one of a few suppliers of a low volatile reductant, a situation, which has allowed the entity to emerge as a key player in the country. The outlook and profitability for the coming year remains dependent on demand for the Corporation’s calcine product, which the Corporation believes looks far more promising than the previous fiscal year-end 2016. The Corporation intends to continue to generate positive free cash flow during the fiscal year-end 2017 and will focus on increasing shareholders’ value, as well as investment to improve the efficiency of its older facilities, or investment into related business opportunities in South Africa. 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 involved in a legal dispute with Kilembe Mines Limited, (“KML”). In January 2013, the High Court of Uganda referred the case back to arbitration for settlement. On May 29, 2013, a preliminary meeting was held between the Corporation, KML and the arbitrator. The Corporation can confirm that further meetings were scheduled for August 2013, after filings of amended statements of defence and claims had been submitted. Since the initial meeting however the Government has awarded a deal to a Chinese Consortium to manage and operate KML. The Corporation’s appointed Ugandan Advocates have notified the board that the Arbitrator has stepped down for personal reasons. The Company’s Uganda Advocates and the Government’s Solicitor General have agreed to a new Arbitrator, Retired Justice James Ogoola. The parties held a preliminary meeting with the Arbitrator who requested them to provide him with their fee estimate for the conduct of the Arbitration. The estimate has since been provided to the Arbitrator who is yet to confirm whether or not he is agreeable to it. In the meantime the Company appointed SRK Consultants to prepare a brief document to quantify the ‘lost opportunity’ value of the termination of the Kilembe Project. During the current financial year the Company will utilize this document to assist in the submission of a revised claim against KML. The Company has received no new information since 2014, and the Company remains unable to give an indication of either the quantum or any likely date by which a settlement will or will not be reached. The original claim, before costs, is for a money sum of US$10,370,368 as at January 24, 2007.
Canaf Group earns $197,691 (U.S.) in Q1 2017-03-20 08:22 MT - News Release Mr. Christopher Way reports CANAF ANNOUNCES FINANCIAL RESULTS FOR Q1 2017 Canaf Group Inc. has released its financial statements and management discussion and analysis for the three-month period ended Jan. 31, 2017. The Corporation is very pleased to confirm the expected positive results for the quarter, which demonstrates the continued strong turnaround of the Corporation's South African business, Quantum. Revenue for the quarter increased to $2,991,706; an increase of 193% compared to the same quarter last fiscal year, and up 67% from the previous quarter ended January 31, 2017. The Corporation expects sustained levels of revenue during Q2 2017, as demand for Quantum's product remains strong in South Africa. The Corporation continues to work on allocating all of its production for the rest of the fiscal period, by securing long-term contracts with key customers. During the quarter, the Corporation recorded a net income of $197,691 (C$259,579), in comparison to a net loss of $294,482 for the same quarter the previous year. Adjusted EBITDA rose to $569,300 (C$747,517) for the quarter. The Corporation intends to continue to generate positive free cash flow during the fiscal year-end 2017 and, as it accumulates cash, will continue to look at either investment to improve the efficiency of its older facilities, or investment in related business opportunities in South Africa. For more details and discussion on the results, the Financial Statements and Management Discussion and Analysis can be viewed on www.sedar.com or the Company's website, www.canafgroup.com. All references to dollars herein are to US dollars. About Canaf Canaf is a junior mining related group based in Vancouver, Canada, and 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 produces a high carbon, de-volatised anthracite. We seek Safe Harbor. © 2017 Canjex Publishing Ltd. All rights reserved.
Level 2 getting thinner. CAF shouldn't be trading less than 10 cents right now given their balance sheet and earnings. LEVEL 2 QUOTE Market Maker Shares Bid Price Ask Price Shares Market Maker 85,000 0.075 0.080 36,000 13,000 0.070 0.085 10,000 300,000 0.065 0.090 107,000 75,000 0.060 0.095 45,000 240,000 0.055 0.100 131,000 83,000 0.050 0.105 10,000 8,000 0.045 0.110 9,000 215,000 0.040 0.120 101,000 22,000 0.035 0.145 10,000 12,000 0.030 0.150 8,000
Q2 results will be out in 2-3 weeks and it clearly says in their last news release that they will be adding more profits. Stock has such a good balance sheet, all in US dollars, we should be trading over 10c right now.
Canaf Group earns $231,961 (U.S.) in fiscal Q2 2017 2017-06-16 07:54 MT - News Release Mr. Christopher Way reports CANAF ANNOUNCES FINANCIAL RESULTS FOR Q2 2017 Canaf Group Inc. has released its financial statements and management's discussion and analysis for the three-month period ended April 30, 2017. As forecast, the corporation has recorded another strong quarter of continued sales and profit growth, demonstrating the capabilities and potential of the business. Revenue for the quarter increased to $3,490,753 (U.S.), an increase of 360 per cent compared with the same quarter last fiscal year and up 16.7 per cent from the previous quarter ended Jan. 31, 2017. During the quarter, the corporation recorded a net income of $231,961 (U.S.), in comparison with a net loss of $41,382 (U.S.) for the same quarter the previous year. For the six-month period ended April 30, 2017, the corporation recorded adjusted earnings before interest, taxes, depreciation and amortization of $679,582 (U.S.) ($927,257) and net income of $429,652 (U.S.) ($586,240). For more details and discussion on the results, the financial statements and management's discussion and analysis can be viewed on SEDAR or the company's website. About Canaf Group Inc. Canaf is a junior mining related group based in Vancouver, Canada, and 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 produces a high-carbon, devolatized anthracite. We seek Safe Harbor. © 2017 Canjex Publishing Ltd. All rights reserved.
Price: $0.09 Common Shares: 47,426,195 Options/Warrants: Nil Insider Holdings: 15,391,328 or 32.5% as per www.Sedi.ca Website: www.canafgroup.com Financials (All in US Dollars – Should Be Converted into CDN Dollars for accurate value) Q1 2017 Results Sales: $2,991,706 Net Income: $198,221 USD Q2 2017 Results Sales: $3,490,753 Net Income: $236,961 USD Six Month Results(2017) Sales: $6,482,459 Net Income: $434,934 Earnings per share after 6 months: $434,934USD X 1.32(as of June 16th) = $575,444CAD Profit $575,444 / 47,426,195(total common shares) = $0.012c earnings after Q1/Q2 ASSETS Trade Receivables: $2,499,259 Tax Receivable: $1,471 Inventories: $541,996 Prepaid Expenses: $35,194 Property & Equipment: $1,253,497 Total Assets: $4,331,418 LIABILITIES Trade Payables: $1,784,836 Sales Tax Receivable: $27,511 Income Tax Payable: $947 Bank Loan: $406,699 Overdraft: $6,573 Deferred Tax: $47,363 Total Liabilities: $2,427,510 Asset/Debt Ratio: 1.78:1 MD&A Highlights OVERALL PERFORMANCE AND OUTLOOK The Corporation is very pleased to confirm a second consecutive quarter of strong results for the 3-month period ended April 30, 2017. Revenue for the 6-month period increased to $6,482,459 in comparison to $1,780,616 for the same period last fiscal year, and up 16.7% from the previous quarter ended January 31, 2017. For the 6-month period, the Corporation recorded a net income of $429,652 (C$586,240), in comparison to a net loss of $335,864 for the same quarter the previous year. Adjusted EBITDA rose to $679,582 (C$927,257) for the quarter. Quantum has performed well for the first half of the year, however the Corporation expects to see a period of reduced demand during Q3 and Q4. For Quantum to reach its full potential, the Corporation recognises the need to broaden its customer base. The Corporation can confirm that it has received interest in its product from a new, major ferro-alloy producer in South Africa, which the Corporation hopes to supply from January 2018; discussions are currently ongoing. The outlook and profitability for the coming years remains dependent on demand for the Corporation’s calcine product, which the Corporation believes remains positive for the long-term. The Corporation intends to continue to generate positive free cash flow during the fiscal year-end 2017 and will focus on increasing shareholders’ value, as well as investment to improve the efficiency of its older facilities, or investment into related business opportunities in South Africa. Revenue increased 264% to $6,482,459, from $1,780,616, for the same period last year. The significant increase in sales is due to a combination of unusually low sales during the last fiscal period, compared to a strong demand during the current period, also at increased prices per sales unit. The Corporation expects to report reduced sales for Q3 and Q4 but expects fiscal year end 2018 to reflect increased demand as the Corporation hopes to bring on a new significant customer and also benefit from an improved, and protected, steel market in South Africa. Revenue from the sale of calcine and coal has historically been derived from two customers and as a result the Corporation is dependent on these customers for its revenue. Quantum however has been actively working on increasing its customer base and has goals to be supplying at least three different facilities by the end of the current fiscal year. Should the Corporation not be successful in increasing its customer base it will continue to solidify and build on its current supply relationships by engaging in secure, long-term supply contracts.
Q3 Results were very strong. See Below: Price: $0.065 Common Shares: 47,426,195 Options/Warrants: Nil Insider Holdings: 15,391,328 or 32.5% as per www.Sedi.ca Website: www.canafgroup.com Financials (All in US Dollars – Should Be Converted into CDN Dollars for accurate value) ASSETS (USD) Cash: $671,367 Trade Receivables: $907,084 Income Tax Receivable: $27.960 Sales Tax Receivable: $1,575 Inventories: $504,600 Prepaid Expenses: $39,166 Property & Equipment: $1,202,245 Intangible: $1 Total Assets: $3,353,998 (USD) LIABILITIES Trade Payables: $732,024 Sales Tax Receivable: $39,234 Income Tax Payable: $958 Current Bank Loan: $78,590 Total Bank Loan: $411,488 Total Liabilities: $1,262,294 Q1 2017 Results Sales: $2,991,706 Net Income: $198,221 USD Q2 2017 Results Sales: $3,490,753 Net Income: $236,961 USD Q3 2017 Results Sales: 1,961,208 Net Income: $187,796 USD Nine Month Results (2017) Sales: $8,443,667 Net Income: $622,730 USD Earnings Per Share: $622,730 USD X 1.235(rate today) = $767,490 CAD $767,490 CAD / 47,426,195 (shares) = $0.016 CAD earnings per share MD&A Highlights After an extremely positive and profitable first two quarters to the financial year, Q3 reflects an expected short-term period of depressed Sales, and subsequent reduction in earnings. Despite Sales reducing significantly for the period, the Corporation remained profitable, again demonstrating its resilience in difficult trading conditions. Sales are expected to increase slightly for Q4 and Q1, 2018. Revenue for the 9-month period increased to $8,443,667 in comparison to $2,907,198 for the same period last fiscal year. The Corporation recorded a net income of $595,716 (C$741,080), in comparison to a net loss of $335,864 for the same period the previous year. Adjusted EBITDA rose to $881,885 (C$1,097,080) for the period. The Corporation continues to understand that for Southern Coal to reach its full potential, its customer bases needs to increase so to reduce its reliability on key suppliers. Southern Coal is continuing to work with a new potential major customer to supply product in South Africa and remains hopeful for trial loads to be dispatched in Q1 or Q2 2018. The board believes that it is in the interest of the Corporation, and its shareholders, that Southern Coal (Pty) Ltd., achieves a Broad-Based Black Economic Empowerment, (“B-BBEE), Level 4 rating during the fiscal year 2018. During the quarter the Corporation can confirm that it has had discussions with its customers over the need for Southern Coal to improve its current B-BBEE rating so to remain compliant with its customers own supplier requirements. During the coming three months, the Corporation expects to announce the details of a deal that is currently being negotiated and finalized by specialists. All in all, the board is of the belief that the final deal that will be agreed will be one that will ensure sustainability and offer growth opportunity for the South African business. The Corporation intends to continue to generate positive free cash flow during the fiscal year-end 2017 and will focus on increasing shareholders’ value, as well as investment to improve the efficiency of its older facilities, or investment into related business opportunities in South Africa The Corporation has an agreement to lease premises for its coal processing plant in South Africa for a term of ten years, expiring on December 31, 2020. The agreement offers the Corporation, in lieu of rent, feedstock coal to be delivered to its adjacent premises, which it purchases at market price. Should the Corporation decide to purchase feedstock coal from an alternative supplier which the lessor is otherwise able to provide, then a monthly rent of Rand 200,000 ($14,846) is payable. To date, the Corporation has not been required to pay any rent for the premises as it has continued to purchase feedstock coal from the landlord. The bank loan bears interest at 9.25% per annum, matures on January 7, 2019, and is secured by the Corporation’s furnace acquired with the proceeds from the loan. The bank loan is repayable over 42 months in blended monthly payments of Rand 393,779 ($29,230 translated at October 31, 2016 exchange rate). During the period ended July 31, 2017, the Corporation incurred interest expense totaling $42,420 (October 31, 2017 – $71,721). 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 involved in a legal dispute with Kilembe Mines Limited, (“KML”). In January 2013, the High Court of Uganda referred the case back to arbitration for settlement. On May 29, 2013, a preliminary meeting was held between the Corporation, KML and the arbitrator. The Corporation can confirm that further meetings were scheduled for August 2013, after filings of amended statements of defence and claims had been submitted. Since the initial meeting however the Government has awarded a deal to a Chinese Consortium to manage and operate KML. The Corporation’s appointed Ugandan Advocates have notified the board that the Arbitrator has stepped down for personal reasons. The Corporation’s Uganda Advocates and the Government’s Solicitor General have agreed to a new Arbitrator, Retired Justice James Ogoola. The parties held a preliminary meeting with the Arbitrator who requested them to provide him with their fee estimate for the conduct of the Arbitration. The estimate has since been provided to the Arbitrator who is yet to confirm whether or not he is agreeable to it. In the meantime the Corporation appointed SRK Consultants to prepare a brief document to quantify the ‘lost opportunity’ value of the termination of the Kilembe Project. During the current financial year the Corporation will utilize this document to assist in the submission of a revised claim against KML. The Corporation has received no new information since 2014, and the Corporation remains unable to give an indication of either the quantum or any likely date by which a settlement will or will not be reached. The original claim, before costs, is for a money sum of US$10,370,368 as at January 24, 2007.
Canaf Group earns $166,064 (U.S.) in Q3 2017 2017-09-25 09:33 MT - News Release Mr. Christopher Way reports CANAF ANNOUNCES FINANCIAL RESULTS FOR Q3 2017 Canaf Group Inc. has released its financial statements and management discussion and analysis for the three-month period ended July 31, 2017. During the period, the corporation recorded revenue for the quarter of $1,961,208 (U.S.), an increase of 74 per cent compared with the same quarter last fiscal year, but down 44 per cent from the previous quarter ended April 30, 2017. During the quarter, the corporation recorded a net income of $166,064 (U.S.), in comparison with a net income of $19,945 (U.S.) for the same quarter the previous year. For the nine-month period ended July 31 2017, the corporation recorded adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $881,885 (U.S.) ($1,097,080) and net income of $595,716 (U.S.) ($741,080). 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 Group Inc. Canaf is a junior mining related group based in Vancouver, 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 100 per cent of Southern Coal Pty. Ltd., a company that produces a high-carbon, devolatized anthracite. We seek Safe Harbor. © 2017 Canjex Publishing Ltd. All rights reserved.
CAF.V is starting to gain momentum as a bunch of news is coming down the pipeline in the next 60-90 days. Remember, this is easily the most undervalued earnings based company on the venture exchange. Trading at a 3.3X multiple(similar companies are 15-20X), and with an Asset/Debt Ratio of roughly 3:1, leveraged towards the USD. Just over 47 million shares outstanding with 33% insider held. CAF refines coking coal used for the steel industry, not typical coal that you find everywhere for burning. It's a special type of coal that only makes up 1% of the world coal reserves. BHP Bhiliton is Canaf's long term client and the largest producer of coking coal in the world, so it's very dependent even on a small company like CAF. What to expect in 90 days: - Year End Results February 2018 - Q1 2018 Results March 2018 - Update on a major deal that was announced in the MD&A CAF has already generating $750K CDN in profit for 2017 over 9 months. In their MD&A it clearly states that Q3 was a weaker quarter and that Q4 2017 and Q1 2018 will have increased sales which will obviously generate larger profits. Recently South Africa had an election and the new leader is very pro business and could usher in major reforms to make South Africans companies more profitable. All information can be found on Sedar for those that want to confirm all this.
CAF.V Subsidiary Information - Quantum Screening & Crushing http://www.canafgroup.com/s/QuantumScreening.asp Canaf Group owns 100 percent of Quantum Screening and Crushing (Proprietary) Limited, ("Quantum"), a private South African company that focuses on anthracite beneficiation. Quantum produces calcined anthracite, a product used primarily as a substitute to coke in the manufacturing process of steel and manganese. The company's two largest clients are world leaders in steel and ferromanganese production, namely ArcelorMittal and BHP Billiton respectively. Quantum has an operation near Newcastle, KwaZulu Natal, where its two kilns operate, de-volatising the raw material anthracite, known as calcining. The majority of Quantum's feedstock anthracite is supplied by the neighbouring Springlake Colliery, which has reserves in excess of 20 years. Calcining is a process whereby anthracite coal is fed through a rotary kiln, at temperatures between 850 and 1100 degrees centigrade; the volatiles are burnt off and the effective carbon content increased. The final product, referred to as 'calcined anthracite' is used as a coke substitute. Calcined anthracite is used as a reductant in the manufacture of steel and manganese, as well as other sintering processes. Quantum, through its wholly owned subsidiary Southern Coal (Proprietary) Limited, ("Southern Coal") has been profitably carrying on this business since 2004. Location and Plant Quantum is situated in Newcastle, KwaZulu Natal, South Africa. The majority of the feedstock anthracite is supplied by Springlake Colliery which has reserves in excess of 20 years, whose coal siding is strategically located adjacent to Quantum's facility. Quantum runs two independent lines of production which each consist of pre-heating stage feeding a main rotary kiln. The raw material, anthracite is feed into an electrically heated rotary pre-heater, which raises the temperature of the product to about 800 degrees C. The pre-heated (and red hot) anthracite is then fed into the main, refractory lined, rotary kiln. It is at this stage of the process that extra raw material is added to the main kiln. The temperature of the main kiln is then controlled to remain above 1000 degrees C so that calcination of the anthracite occurs and maximum amount of volatile matter is burnt off. The final stage of the process involves the oxidization of any excess volatiles in the after-burners/oxidizers, before emission to the atmosphere. Screening and Crushing Plants Since the Company acquired Quantum in 2007, significant investment has been made in crushing and screening equipment. Quantum now has the ability to offer existing and potential customers a range of size productsm which subsequently opens up other markets. Quantum has 2 independent screening plants, which are capable to dry screen down to sizes as small as 6mm. Profitability, Performance and Expansion Program Quantum Screening and Crushing has been operating profitably since the Company acquired it in 2007. Quantum Screening and Crushing has built up a fine reputation for product quality and reliability of supply, which has earned the respect and preference from two of the major steel and manganese producers in the world. Canaf believes that as long as Quantum maintains its focus on its core values, coupled with the ever-increasing demand of calcined anthracite as a replacement to coke in the reductant market, that the business will continue to expand and potentially become one of the major reductants and low volatile reductant suppliers on the continent.
2018-01-04 13:33 MT - News Release Mr. Christopher Way reports CANAF ANNOUNCES SAD LOSS OF ZENAIDA MANALO Canaf Group Inc. is deeply saddened about the sudden passing of Zenaida (Zeny) Manalo. Ms. Manalo was appointed chief financial officer of Canaf in June, 2010, and was a dedicated member of the corporation. She was much respected and liked by all who dealt with her and will be greatly missed by many. The corporation extends to Ms. Manalo's family and friends its deepest sympathies and is grateful for all the years of service she gave to Canaf. The company is in the process of identifying a replacement for the vacancy she leaves, and further announcements will follow in due course; in the interim, her duties are being taken care of by other members of the executive team. © 2018 Canjex Publishing Ltd. All rights reserved.
Just to note that this director owned ZERO shares and was making $40-50K USD per year. The company needs to bring in a serious director that's willing to take up at least a 1% position if they intend to take her place and make a salary.
Canaf appoints Sinclair director, CFO 2018-01-09 17:49 MT - News Release Mr. Christopher Way reports CANAF ANNOUNCES APPOINTMENT OF DIRECTOR AND CFO Canaf Group Inc. has appointed Derick Sinclair as a director and chief financial officer effective immediately. Mr. Sinclair has more than 25 years experience in accounting and financial management. Mr. Sinclair received his bachelor's degree in commerce from the University of Windsor, Canada, in 1982 and has been a member of the Institute of Chartered Accountants of British Columbia since 1985. He began his accounting career in 1982 as an auditor with KPMG Peat Marwick Thorne and then joined BC Rail, at the time Canada's third-largest railway, as a treasury analyst in 1985. He progressed through BC Rail's finance department and served as its manager of general accounting. He served as a director of fleet management for BC Rail Ltd. from December, 1992, to March, 1996. He was appointed CFO of BC Rail's telecommunications spinout company in 1996, and stayed through two sales in 1998 to RSL Communications Ltd., a global telecommunications company, and in 2001 to SaskTel, a leading telecommunications company in Saskatchewan. He left SaskTel in 2003 to form DR Financial Services, which provides CFO and other services. Mr. Sinclair is currently the CFO for several privately held, Canadian Securities Exchange- and TSX Venture Exchange-listed companies. His experience as a financial executive with exemplary leadership and understanding of corporate needs and developments gives Canaf great confidence he will achieve a seamless transition replacing Zeny Manalo as the CFO. © 2018 Canjex Publishing Ltd. All rights reserved.
South African Rand Hits 2 Year High Against USD Very positive for CAF, means we are getting more money compared to prior quarters once converted from Rand to USD. See chart: https://www.xe.com/currencycharts/?from=ZAR&to=USD&view=2Y
Great articles that explain why CAF.V(Canaf Group Inc.) anthracite coal is rare and valuable. This is why the company is very profitable and will continue to be through 2018. All articles are from 2017-2018: 1) https://www.eia.gov/energyexplained/index.cfm?page=coal_prices Highlights From Link: - Anthracite is rare in the United States, accounting for less than 1% of the coal mined in the United States - The average annual sale prices of coal at mines producing each of the four major ranks of coal in 2015, in dollars per short ton (2,000 pounds) Bituminous—$51.57 Subbituminous—$14.63 Lignite—$22.36 Anthracite—$97.91 2) https://en.wikipedia.org/wiki/Anthracite Anthracite is categorized into standard grade, which is used mainly in power generation, and high grade (HG) and ultra high grade (UHG), the principal uses of which are in the metallurgy sector. Anthracite accounts for about 1% of global coal reserves,[4] and is mined in only a few countries around the world. China accounts for the majority of global production; other producers are Russia, Ukraine, North Korea, South Africa, Vietnam, the UK, Australia, Canada and the US. Total production in 2010 was 670 million tons.[5] 3) Recent Article On Anthracite Coal - https://www.thebalance.com/what-is-anthracite-coal-1182544 4) Recent US Asset Sale To Ukraine For Coal - http://www.railwayage.com/index.php/freight/short-lines/for-rn-a-coal-fueled-record-year.html - “Our anthracite coal business was up more than 40%, so once again, R&N is ‘The Road of Anthracite.’ This explosive growth was fueled by a late-year announcement of a major sale of Pennsylvania anthracite to the Ukraine, replacing Russian coal. Following a July announcement of the deal at the White House, R&N was told to prepare to move more than 300,000 tons of anthracite by year end. We stepped up and managed to provide all the cars needed for the business and served as many as eight different origins as the entire anthracite community pulled together to fill this huge order. We are hopeful that this business will continue in 2018.” 5) https://en.antaranews.com/news/114341/vietnam-expects-more-investors-from-indonesia Kadin also hoped to cooperate with VCCI in coal production, especially anthracite coal. "So far, Indonesia has imported a lot of anthracite coal from Vietnam for iron smelting and to meet the needs of smelters," he noted. In connection with that, Ganefor hoped for a barter with Indonesia; for example, exporting aircraft, cocopeat, and others to Vietnam, while that country exports anthracite coal and others to Indonesia, with regard to balance trade between the two countries. ** Key thing to take away from this article is that they specific Anthracite coal above other commodities even though this is meant to be a general meeting** 6) Rare Earth Elements Could Exist In Anthracite coal http://dailytelescope.com/pr/update...and-increase-demand-for-anthracite-coal/37903
Canaf's South African subsidiary agrees to B-BBEE deal 2018-01-29 10:44 MT - News Release Mr. Christopher Way reports CANAF ANNOUNCES B-BBEE TRANSACTION FOR SOUTH AFRICAN SUBSIDIARY Canaf Group Inc. has released the terms of its Broad-Based Black Economic Empowerment, transaction for its South African subsidiary, Southern Coal (Pty) Ltd. As part of Southern Coal's continuing B-BBEE transformation program, Elkhat (Pty) Ltd., a 100-per-cent black, privately owned company incorporated in South Africa, has agreed to acquire 30 per cent of the issued shares of Southern Coal, from Canaf's wholly owned subsidiary, Quantum Screening and Crushing (Pty) Ltd., for the value of $1.8-million. Quantum will in return receive cumulative, redeemable preference shares in Elkhat in the amount of the purchase price, R18million (C$1.8million approx). These preference shares shall provide preferential dividends, until redeemed by Elkhat. These dividends will be secured by an irrevocable direction from Elkhat to Southern Coal to pay Quantum such dividends from any distribution to Elkhat. The transaction will close on 24 March 2018. Christopher Way, Chief Executive Officer of Canaf, states, "It is my goal to ensure that Canaf, via its South African subsidiaries, expands and invests in South Africa and its neighbours. The agreement to sell 30% of Southern Coal to Elkhat marks a significant and essential milestone in our B-BBEE transformation program; this program helps ensure sustainability and security for the Corporation in South Africa, and subsequently only facilitates our long-term expansion goals in Southern Africa." In addition to this transaction, Southern Coal is also pleased to confirm that it is well on track in ensuring that all other areas of its B-BBEE transformation plan, including its Enterprise, Socio-Economic, Skills, and Supplier, Development programs, are fully invested in, so to ensure that the Company reaches its desired level. 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 29 January 2018, Quantum agrees to sell 30% of its shares in Southern Coal for the net consideration of R18million; the transaction will close on 24 March 2018. 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 a rotary kiln, 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.
Right now there is a major program going on in the same region of South Africa for Cannabis cultivation and CAF's operations are right there. If you look below, you'll be able to connect the dots. Not saying this will happen for sure, but it's very possible. CAF Company Description: Canaf Group Inc. is a Canada-based company, which focuses on investing and developing in the markets of Africa. The Company owns a coal beneficiation facility in South Africa, Quantum Screening and Crushing (Pty) Ltd. (Quantum). Quantum, through its subsidiary, Southern Coal (Pty) Ltd., processes anthracite coal into de-volatized (calcined) anthracite for sale mostly to steel and ferromanganese manufacturers as a substitute product for coke. Quantum has an operation near Newcastle, KwaZulu Natal, where its kilns operate, de-volatizing the raw material anthracite, known as calcining. Quantum's feedstock anthracite is supplied by the neighboring Springlake Colliery. Quantum runs over two independent lines of production, which each consist of pre-heating stage feeding a main rotary kiln. The final stage of the process involves the oxidization of any excess volatiles in the after-burners/oxidizers, before emission to the atmosphere. Quantum has over two independent screening plants. So the Province the company is located in is "KwaZulu Natal", remember that. From CAF's last new release: Christopher Way, chief executive officer of Canaf, states: "It is my goal to ensure that Canaf, via its South African subsidiaries, expands and invests in South Africa and its neighbours. The agreement to sell 30 per cent of Southern Coal to Elkhat marks a significant and essential milestone in our B-BBEE transformation program; this program helps ensure sustainability and security for the corporation in South Africa, and subsequently only facilitates our long-term expansion goals in Southern Africa." From Wikipedia: https://en.wikipedia.org/wiki/Cannabis_in_South_Africa Cannabis grows well in South Africa's climate,[21] especially in the "dagga belt", an area including the Eastern Cape and KwaZulu-Natal provinces[8] where, per the 2011 International Narcotics Control Strategy Report, it is a traditional crop. According to GroundUp, cannabis is "an important cash crop" that "sustains entire communities in the rural Eastern Cape", which otherwise survive in a subsistence economy.[22][23] Rural farmers are typically poor and produce low quality local product that is consumed domestically by the lower class, while middle class growers produce product for the rest of the national and international marijuana market.[23] Most of the national product is consumed domestically or regionally, but increasing amounts are seized in Europe.[24] Recent news article: https://www.iol.co.za/dailynews/dagga-set-to-grow-kzn-economy-11274908 KwaZulu-Natal emerging farmers are going to get the chance to cultivate a “miracle crop” that has the potential to transform the South African economy, while creating thousands of much-needed jobs. And the plant that will be grown in six rural areas of the province to help to bring prosperity to the region and the country is cannabis, also known as hemp or dagga
Why is the new deal that CAF made crucial for growing it's business? I was reading over CAF's recent news and I overlooked something. CAF's subsidiary was purchased for $1.8 million USD(30%) in preferred shares in a private company, rather than cash. So why would CAF do this? There's a very good reason and it explains this in their last MD&A and in this news release. In South Africa, there is a movement where they want companies owned by black individuals to be part of white companies. This is not mandatory but optional. If you get a certain amount of black employee's and companies to join your business, you get rated on levels. The key level is as mentioned by CAF, (Level 4). Once this is reached, a whole bunch of new opportunities actually open up to the company. If CAF is looking for more big industry players and they already have BHP Bhiliton and ArcelorMittal(both multi billion dollar companies) as stated on their website, then sky is the limit for this company. Below is a link and list of new opportunities available once you get to this stage: http://cenfed.co.za/benefits-bbbee-certificate/ Obtaining a Broad-Based Black Economic Empowerment (BBBEE) certificate for your company may seem like a lot of hard work, tedium and jumping through bureaucratic hoops – but it doesn’t have to be. A certificate can give you an edge over competitors and open up a lot of doors for business growth – and it might be easier to acquire than you think. BBBEE policies are set out in the BBBEE Act (No. 53 of 2003) and reinforced by the Codes of Good Practice (last revised in 2015). Under this legislation, it is not compulsory for a business to obtain a BBBEE certificate – it is an entirely voluntary process. However, a certificate brings with it a lot of benefits – particularly for Qualifying Small Enterprises (QSEs). A QSE is a company that has an annual turnover of between R10 million and R50 million. One of the biggest benefits of having a BBBEE certificate is being able to conduct business with government sectors (including municipalities) and public entities. A certificate allows a company to tender – and the higher the level of your certificate, the better your chances of winning. There are eight levels of BBBEE compliance, with Level 1 being the highest and most desirable. Other advantages of having a BBBEE certificate include having a better chance of securing contracts with large companies and big industry names, because they are encouraged to do business with smaller BBBEE-compliant companies. A certificate allows you to participate as a supplier in the lucrative chain of preferential procurement. A further benefit of having a BBBEE certificate is the impression it gives. A certificate shows that you care and that your business is committed to making a positive difference in socety. Remember that BBBEE policies are focussed on effecting transformation in the business world by empowering greater black economic participation. A BBBEE certificate can be promoted in your business’s marketing materials. BBBEE certificates can be issued by verification agencies that are approved by the South African National Accreditation System or Independent Regulatory Body. Obtaining a certificate may not require special auditing – an affidavit may suffice. For example, a QSE that has 51% black ownership is automatically qualifies for Level 2 BBBEE status. If the ownership is 100% black, this grants Level 1 status Exempt Micro Enterprises (EMEs), which need to have annual turnover of less than R10 million, automatically acquire Level 4 status without needing any black ownership. Having black ownership immediately upgrades them to Level 1 status. BBBEE certificates are valid for one year from the date of issue, and need to be renewed annually. Even though rules and regulations have become stricter with the policy changes that were introduced last year, it is still perfectly feasible to obtain a BBBEE certificate – and with all the benefits that having one brings, there is no good reason not to. Original news release this week: Canaf's South African subsidiary agrees to B-BBEE deal 2018-01-29 10:44 MT - News Release Mr. Christopher Way reports CANAF ANNOUNCES B-BBEE TRANSACTION FOR SOUTH AFRICAN SUBSIDIARY Canaf Group Inc. has released the terms of its Broad-Based Black Economic Empowerment, transaction for its South African subsidiary, Southern Coal Pty. Ltd. As part of Southern Coal's continuing B-BBEE transformation program, Elkhat Pty. Ltd., a 100-per-cent black, privately owned company incorporated in South Africa, has agreed to acquire 30 per cent of the issued shares of Southern Coal, from Canaf's wholly owned subsidiary, Quantum Screening and Crushing Pty. Ltd., for the value of $1.8-million. Quantum will, in return, receive cumulative, redeemable preference shares in Elkhat in the amount of the purchase price, $1.8-million. These preference shares shall provide preferential dividends, until redeemed by Elkhat. These dividends will be secured by an irrevocable direction from Elkhat to Southern Coal to pay Quantum such dividends from any distribution to Elkhat. The transaction will close on March 24, 2018. Christopher Way, chief executive officer of Canaf, states: "It is my goal to ensure that Canaf, via its South African subsidiaries, expands and invests in South Africa and its neighbours. The agreement to sell 30 per cent of Southern Coal to Elkhat marks a significant and essential milestone in our B-BBEE transformation program; this program helps ensure sustainability and security for the corporation in South Africa, and subsequently only facilitates our long-term expansion goals in Southern Africa." In addition to this transaction, Southern Coal is also pleased to confirm that it is well on track in ensuring that all other areas of its B-BBEE transformation plan, including its enterprise, socio-economic skills and supplier development programs are fully invested in so to ensure that the company reaches its desired level. About Canaf Group Inc. Canaf is a junior-mining-related group based in Vancouver, 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 100 per cent of Southern Coal Pty. Ltd., a company that produces a high-carbon, devolatized anthracite. We seek Safe Harbor. © 2018 Canjex Publishing Ltd. All rights reserved.
This article is from 2013, but it explains the difference between the type of coals that exist. CAF sells Metallurgical coal and the rarest and highest quality form of it called Anthracite. https://globalnews.ca/news/627069/the-coal-facts-thermal-coal-vs-metallurgical-coal/
1) Decmber 18th 2017 - Iron ore, coking coal prices are soaring Link: http://www.mining.com/iron-ore-coking-coal-prices-soaring/ 2) January 18th 2018 - India Steel Ministry Seeks Abolition of Metallurgical Coal Import Tax LInk: https://www.bloomberg.com/news/arti...nistry-seeks-abolition-of-met-coal-import-tax 3) January 29th 2018 - Macquarie Bank has upgraded its price forecasts for iron ore and coal Link: https://www.businessinsider.com.au/macquarie-bank-iron-ore-coal-price-forecasts-2018-1 4) January 23rd 2018 - Coking coal prices supported by mine, logistics issues: Seaport Global Link: https://www.platts.com/latest-news/...l-prices-supported-by-mine-logistics-10184570 5) January 18th 2018 - Coking coal in focus on lower production forecasts Link: https://www.ft.com/content/8a03f2ea-fc63-11e7-9b32-d7d59aace167 6) February 2nd 2018 - Coking coal outlook bright for 2018 on robust Chinese demand Link: https://www.metalbulletin.com/Artic...inese-demand-recovery-in-EuropeSP-Angels.html Two major producing mines are currently out of commission which is driving prices even higher 7) January 26th 2018 - Canada's Teck sees 200,000 mt coking coal loss from Elkview plant issue LInk: https://www.platts.com/latest-news/coal/london/canadas-teck-sees-200000-mt-coking-coal-loss-21167480 8) January 17th 2018 - South32 Q2 coking coal output falls 43 pct as mine outage weighs Link: https://www.reuters.com/article/sou...ls-43-pct-as-mine-outage-weighs-idUSL3N1PB5IS Also in news, there are numerous countries defying sanctions such as China, Russia, Taiwan, Vietnam and others to try and secure supplies of coking coal from North Korea. If countries are that desperate for this type of coal and willing to risk backlash from it, you know the world supply is diminishing quickly. Why did I post all these articles? Because CAF.V is in the right place at the right time and their last 9 months show this because of the tremendous growth in sales and profits associated with the supply crunch. Stock will be one of the gems of the TSX-V in 2018
