CAF - Canaf Group Inc.

Discussion in 'Stock picks and trading strategies' started by goldismyfriend, Jan 3, 2018.

  1. Canaf Group Inc Q1 2018 Financial Results + Management Highlights
    (All Information Taken From SEDAR)


    Tickers: CAF(CAD) & CAFZF(US)
    Price: $0.11
    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)


    ASSETS
    Cash: $394,520
    Trade Receivables: $2,678,248
    Sales Tax Receivable: $17,942
    Inventories: $895,361
    Prepaid Expenses: $31,114
    Property & Equipment: $1,172,010
    Intangible: $1
    Total Assets: $5,189,196 USD

    LIABILITIES
    Trade & Other Payables: $2,211,185
    Income Tax Payable: $119,979
    Current Portion Of Bank Loan: $310,819
    Remaining Portion Of Bank Loan: $85,760
    Total Liabilities: $2,727,743

    Asset/Debt Ratio: 1.9:1

    Q1 2018 Sales
    Revenue: $3,273,213
    Quarterly Net Income: 552,815 USD - $707,440 CAD

    Q1-Q4 2017 Sales
    Revenue: $10,699,117
    Yearly Net Income: $439,664 USD - $562,640 CAD

    Management Discussion Highlights From Q1 2018


    OVERALL PERFORMANCE AND OUTLOOK


    The results above shows the sale recovery and demand of the Corporation’s product which started in Q3, 2016. Sales for the three month period ended January 31, 2018 increased by 45% in comparison to the previous quarter and is expected to increase by a further 40% in Q2, as more confidence returns to the markets. (Page 5)


    The outlook and profitability of the Corporation remains strong and the Corporation expects to continue to generate positive free cash flow during the fiscal year-end 2018 and, as it accumulates cash and reduces its gearing and increases its efficiencies, will continue to look at investment in related business opportunities in South Africa, a country which many now regard with a very positive outlook


    The three month period ended 31 January 2018 saw the Corporation continue to recover from significantly reduced sales between mid-2015 to mid-2016, when depressed global commodity prices affected the Corporation’s customers negatively.


    Revenue for the three month period was $3,273,213 (2017 - $2,991,706) a $281,507, 9% increase, and the Corporation returned to profitability with net comprehensive income for three month period ended January 31, 2018 of $552,815 (2017 - $198,221) a $354,594, 179% favourable variance. The results reflect the previously reported turnaround from increased demand with sales remaining strong.


    During the quarter, Southern Coal experienced a further increase in demand from its customers, in comparison to that of Q4, 2017 and the Corporation can confirm that Q2, 2018 will reflect a further increase to Southern Coal’s maximum capacity.


    The Corporation also remains focused on completing a Broad-Based Black Economic Empowerment (“B-BBEE”) transaction for Southern Coal, by mid-June 2018. The B-BBEE is a form of economic empowerment initiated by the South African government with the goal to distribute wealth across as broad a spectrum of previously disadvantaged South African society as possible. A new partner has been identified and initial terms of the agreement, which will remain much the same as the previously agreed transaction, will most probably be announced by the end of April 2018. The Corporation remains confident that it will achieve its B-BBEE goals during the current fiscal year and we remain optimistic of the opportunities that will arise from such a transaction.


    The Corporation reported net income o f $187,126 (2017 - $197,691) a $10,565 unfavourable variance of over the previous period. The reduction in GM and profit are due to increased feedstock costs in Q1 and a one month delay in the corresponding sale price increase, a general increase in maintenance cost and investment into B-BBEE training projects in Q1 which represent approximately 75% of the projected annual spend for B-BBEE


    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 ($16,819) 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 10.25% per annum, matures on January 7, 2019, and is secured by the Company’s furnace acquired with the proceeds from the loan. The bank loan is repayable in blended monthly payments of Rand 391,624 ($32,934 translated at January 31, 2018 exchange rate)). During the three month period ended January 31, 2018, the Company incurred interest expense totaling $Nil (January 31, 2017 – $15,322).
     
  2. Looks as if the CEO of CAF has already established himself in South Africa's realm of black empowerment. He started a company a few years ago called Sewa Coti, as per his LinkedIn: Sewa Coti is an African-focused consultancy specialising in due diligence, project management, strategy, as well as B-BBEE legislation in South Africa.

    So what that tells me is that with pretty much 100% certainty we will get a deal done, established Canaf with government contracts and shouldn't have any issue diversifying. This guy is smart, he has paved the road to growing this company far beyond where it's currently at.

    From CAF's last MD&A:

    The Corporation also remains focused on completing a Broad-Based Black Economic Empowerment (“B-BBEE”) transaction for Southern Coal, by mid-June 2018. The B-BBEE is a form of economic empowerment initiated by the South African government with the goal to distribute wealth across as broad a spectrum of previously disadvantaged South African society as possible. A new partner has been identified and initial terms of the agreement, which will remain much the same as the previously agreed transaction, will most probably be announced by the end of April 2018. The Corporation remains confident that it will achieve its B-BBEE goals during the current fiscal year and we remain optimistic of the opportunities that will arise from such a transaction.
     
  3. Canaf Group earns $691,115 (U.S.) in six months

    2018-06-28 14:56 ET - News Release


    Mr. Christopher Way reports

    CANAF ANNOUNCES FINANCIAL RESULTS FOR Q2 2018

    Canaf Group Inc. has released its financial statements, and management discussion and analysis for the six-month period ended April 30, 2018.

    The corporation is pleased to confirm continued positive results for the period in line with expectations.

    Revenue for the six-month period ended April 30, 2018, increased to $8,698,426 (U.S.), an increase of 34 per cent compared with the same period last fiscal year, which generated a net comprehensive income of $691,115 (U.S.) (2017: $434,934 (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 company's website.

    About Canaf Group 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 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.
     
  4. Canaf Group Inc.(CAF.V) Q2 2018 Results. Financials + MD&A
    All information can be found at www.sedar.com

    Price: $0.11
    Common Shares: 47,426,195
    Warrants/Options: 0
    Website: www.canafgroup.com

    Financials (All In US Dollars)

    ASSETS
    Cash: $315,407
    Trade Receivables: $3,604,555
    Sales Tax Receivable: $3,091
    Inventories: $418,389
    Prepaid Expenses: $20,028
    Property, Plant & Equipment: $953,801
    Intangible: $1
    Total Assets: $5,315,272

    LIABILITIES
    Trade & Other Payables: $2,296,780
    Sales Tax Payable: $17,689
    Income Tax Payable: $129,439
    Bank Loan(Due Jan 2019): $271,611
    Total Liabilities: $2,715,519

    Asset/Debt Ratio: 1.96:1

    Six Month Performance(Q1 & Q2 2018)
    Sales: $8,698,426
    Net Income: $691,115 USD

    Net Income for 2017(Q1-Q4): $541,808 USD

    Earnings per share in 2018:
    $691,115USD X 1.31 CAD(June 29th 2018) / 47,426,195 = $0.019 cents CAD

    Earnings per share over 6 quarters:

    $1,232,923 X 1.31 CAD /47,426,195 = $0.034 cent CAD

    MD&A Highlights

    Revenues for the six months were $8,698,426 (2017 - $6,482,459) a 34% increase, and the Corporation continues to be profitable with gross profits of $703,169 (2017 - $684,905) a 2.7% increase and net income for six month period ended April 30, 2018 of $449,880 (2017 - $429,652) a $20,288, 4.7% increase. While revenues and gross margin have grown, increased cost of sales produced smaller gross margin percentages, 2018 8.1% (2017 10.6%).

    The reduction in the gross margin is mainly due to a major maintenance project during the period. The Corporation expects to continue to operate profitably into Q3 and Q4, however Revenue is expected to drop, due to a reduction in demand caused primarily by one of Southern Coals main customers’ internal coke breeze coming back online.

    The outlook and profitability of the Corporation remains strong and the Corporation expects to continue to generate positive free cash flow during the fiscal year-end 2018 and, as it accumulates cash and reduces its gearing and increases its efficiencies, will continue to look at investment in related business opportunities in South Africa and neighbouring countries.

    The Corporation’s B-BBEE transaction for the sale of 30% of Quantum’s shares in Southern Coal remains on track to be completed during the current fiscal year. Following the termination of the initial agreement announced on 20 February 2018, a new B-BBEE partner has been identified and initial terms of the agreement, which will remain much the same as the previously agreed transaction, are expected to be announced during Q3.

    Sales from the Corporation’s South African coal processing business are substantially derived from two customers and as a result, the Corporation is economically dependent on these customers. The Corporation’s exposure to credit risk is limited to the carrying value of its accounts receivable. As at April 30, 2018, trade receivables of $3,604,555 (October 31, 2017, $1,314,828) were due from these customers and were collected subsequent to period-end.

    The bank loan bears interest at 10.25% 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 in blended monthly payments of Rand 391,624 ($32,359.89 translated at April 30, 2018 exchange rate)). During the six month period ended April 30, 2018, the Corporation incurred interest expense totaling $19,909 (April 30, 2017 – $29,658).

    Expenses for the six months were $304,980 (2017 - $237,288) an increase of $67,692, 29%, primarily due to increased costs relating to the B-BBEE program

    General administrative and finance expenses for the six month period were $285,071 (April 30, 2017 - $207,630) an unfavourable variance of $77,441, primarily due to increased involvement in South Africa’s B-BBEE program and increased activity resulting in higher management fees and office expenses. Additional detail of general and admin expenses can be found in the table below.
     
  5. Canaf Group changes name to Canaf Investments

    2018-07-03 18:11 MT - News Release


    Mr. Christopher Way reports

    CANAF GROUP INC. ANNOUNCES NAME CHANGE TO CANAF INVESTMENTS INC.

    Canaf Group Inc. will be changing its corporate name to Canaf Investments Inc., effective July 5, 2018. At the opening of trading on July 5, 2018, the common shares of the company will commence trading on the TSX Venture Exchange under the new name and Cusip No. 13682P102, and will continue trading under the same symbol CAF.

    Shareholders holding share certificates in the name of Canaf Group can request replacement certificates with the new corporate name, but new certificates are not required and will not be automatically issued. There will be no consolidation of capital in connection with the change of name.

    The change of name has been implemented to better represent the corporation and further meets the requirements of the corporation's new jurisdiction of British Columbia, which was approved in the last annual general meeting.

    About Canaf Group 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 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.
     
  6. Canaf Group to sell 30% of unit for $1.7M

    2018-07-06 10:44 MT - News Release


    Mr. Christopher Way reports

    CANAF ANNOUNCES B-BBEE TRANSACTION FOR SOUTH AFRICAN SUBSIDIARY

    Canaf Investments Inc., formerly known as Canaf Group Inc., has provided the terms of its new broad-based black economic empowerment (B-BBEE) transaction for its South African subsidiary, Southern Coal (Pty.) Ltd.

    As part of Southern Coal's continuing B-BBEE transformation program, Amandla Amakhulu (Pty) Ltd. (AAM), 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 18 million South African rand (approximately $1.7-million (Canadian)).

    Quantum will in return receive cumulative, redeemable preference shares in AAM in the amount of the purchase price, 18 million rand (approximately $1.7-million (Canadian)). 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. The transaction will close by Aug. 31, 2018.

    Christopher Way, chief executive officer of Canaf, states: "The signing of this important agreement to sell 30 per cent of Quantum's shares in Southern Coal, confirms our intention to ensure that Southern Coal achieves the required B-BBEE level for the current financial year. We remain focused on securing new long-term contracts for the existing business and also continue to look at diversification opportunities in South Africa and its neighbours."

    In addition to this transaction, Southern Coal can confirm that it remains on track in ensuring that all other areas of its B-BBEE transformation plan, including its enterprise, socio-economic, skills, and supplier and development programs, are fully invested in, so to ensure that the company reaches its desired level.

    About Canaf Group Inc.

    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 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. As of July 3, 2018, Quantum agrees to sell 30 per cent of its shares in Southern Coal for the net consideration of 18 million rand; the transaction will close by Aug. 31, 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 1,100 C; 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.
     
  7. https://simplywall.st/stocks/ca/materials/tsxv-caf/canaf-investments-shares/news/what-you-must-know-about-canaf-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.

    [​IMG]
    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.
     
  8. 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.
     
  9. China to invest $15 billion in South African economy

    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
    China to invest $15 billion in South African economy
    © Thomas White / Reuters
    10321
    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
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    “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
     
  10. 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



    [​IMG]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.
     
  11. 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.
     
  12. 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.
     
  13. 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.
     
  14. 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.
     
  15. 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.
     
  16. 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.

    [​IMG]
    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.
     
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