Public info confirms Canaf(CAF.v @ .075$) lawsuit windfall is nearby

 

Public documentation is overwhelming. See the date of the public info in the links and understand in RED, they are talking about CANAF GROUP (Formerly called Uganda Gold Mining). Expect a trading halt when announced.

Canaf is suing the Uganda government for 10.4M$ (or .22$/share). Canaf bears no legal fees during the proceedings, it will only have to provide a portion of the windfall to the firm representing them. And still today, the company trades at 5x its net earnings generated in the trailing 12 months.

  

April 28th 2012

http://ssuubifm.net/kay/2012/04/chinese-company-to-invest-us100-million-in-kilembe-mines/

 

Chinese company to invest US$100 million in Kilembe Mines

Written by Ahmed Bogere Masembe | April 28, 2012 | 0

President Yoweri Museveni has assured a Chinese Private owned company, Gingko Energy, their plans to invest in the development of KilembeCopper Mines in Kasese district, Wesatern Uganda, is a welcome move. He said the Government of Uganda is interested in allowing investments in Kilembe Mines in order to ensure that the country gets more revenue that would be used to expand the national development tempo.

President Museveni was today meeting with Mr. Lin Rui Hui whois Chinese-based Chairman of Gingko Energy Company at State House, Entebbe. The President advised the company to focus on the production of 99% pure copper which, he said, can be exported and for use in local industries in Uganda.

Mr. Museveni said the 94% blister copper should be producedfor export because the local industries will not be able to use it for making final products noting that pure copper can be used by the local industries tomanufacture items such as electrical materials, among others.

Regarding the court injunction that came into play after the misunderstanding between the Uganda Gold Mining Company and Kilembe Mines, the President said that should not be an obstacle to hinder development of the resource. He said the issue should be sorted out without stopping development.

Chairman Lin Rui Hui, on his part, revealed that his company plans to invest US$ 100 million for the development of Kilembe Mines in the next 5 years. He said Kilembe Mines has a total capacity of 300,000 tons of copper ore out of which 200,000 tones have been proved.

Mr. Lin Rui Hui also said they will build a technical school and a hospital as part of their social responsibility in investing in the development of the local community’s welfare, among other development plans. He added that what remains is for the Government of Uganda to give the company a go-ahead to commence the work at the mines.

 

 

Also available on the web

 

April 30th 2012

http://www.mineweb.com/mineweb/view/mineweb/en/page504?oid=150431&sn=Detail

http://www.ventures-africa.com/2012/04/chinese-firm-set-to-invest-100-million-in-ugandan-copper-mine/

 

 

April 29th 2012

http://www.chimpreports.com/index.php/business/4402-m7-to-chinese-ignore-court-ruling-invest-us-100m-in-kilembe-mines.html

 

April 27 2012

http://www.mediacentre.go.ug/details.php?catId=4&&item=1671

 

May 2th 2012

http://www.newtimes.co.rw/news/index.php?a=53135&i=14980

 

May 4th 2012

http://www.mbendi.com/a_sndmsg/news_view.asp?I=124642&PG=35

 

 

 Investors ought to remember Canaf Group is already profitable, generates cash and has practically no long term debt. The company's current accounting metrics are clearly indicating an undervalued situation, and the lawsuit settlement will spearhead their growth initiatives.

 

Canaf (CAF.v) : 2012 Q1 summary and trading @ .075$ right now

• Profitable in 7 of the 9 past quarters ( both unprofitable quarters were due to one-time non-recurring events )


• Trailing 12 months net earnings = 730k (+.015$/share)


• Trailing 12 month PE ratio = 5x ( 3x if we discount working capital )


• Current Market cap only 3.3M$


• 2011 sales 13.3M$


• Price/sales ratio roughly 0.2x


• Long term debt only 216k


• 2 large and recurring customers (ArcelorMittal and BHP Billiton) who have needs far exceeding the company’s production capability; Long term supply trial currently ongoing with Billiton


• Working capital = +1.1M$ (+.022$/share)


• 47.4M shares outstanding; more than 20M are held tight; recent & significant insider buying


• Salaries are not a problem (very reasonable)

 

Recent insider trading  
 
–CEO acquired over 3M shares in summer 2011
–953 472 shares bought march 2nd 2012 by Canaf director Kevin Corrigan
–Kevin Corrigan is Head of credit of one of the oldest Swiss Bank (Lombard Odier Darier Hentsch & Cie  -  http://www.lombardodier.com/en/Profile-of-our-Firm/Lombard-Odier-Darier-Hentsch--Cie/Lombard-Odier-Darier-Hentsch--Cie.html )
 

From  http://www.canadianinsider.com/node/7?menu_tickersearch=caf

 

–Mar 5/12  Mar 2/12  Corrigan, Kevin  Direct Ownership  Common Shares  11 - Acquisition carried out privately  953,472    
–Mar 5/12  Dec 30/11  Corrigan, Kevin  Direct Ownership  Common Shares  10 - Acquisition in the public market  34,000  $0.050
–Mar 5/12  Dec 30/11  Corrigan, Kevin  Direct Ownership  Common Shares  10 - Acquisition in the public market  66,000  $0.055
–Nov 18/11  Nov 17/11  Way, Christopher Robert  Direct Ownership  Common Shares  10 - Acquisition in the public market  116,900  $0.072
–Sep 12/11  Sep 7/11  Way, Christopher Robert  Indirect Ownership  Common Shares  10 - Acquisition in the public market  40,000  $0.060

 

 

The above is simply my personal understanding and not to be construed as investment advice. I’m not a broker, director, manager or employee of the aforementioned company, just a shareholder. Some typos could have occurred, do your own due diligence.