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Posted by chiliandrillman on :
 
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 (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.
 
Posted by chiliandrillman on :
 
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 $1.1 million 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.
 
Posted by chiliandrillman on :
 
typo, $750K CDN profit over 9 months not $1.1 mil CDN.
 
Posted by chiliandrillman on :
 
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.
 
Posted by chiliandrillman on :
 
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.
 
Posted by chiliandrillman on :
 
That director who passed away owned no shares of CAF and was getting paid a decent salary for years. Time to replace her with someone more serious that's willing to take a position in Canaf Group
 
Posted by chiliandrillman on :
 
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.
 
Posted by chiliandrillman on :
 
South African Rand Hits 2 Year High

Very positive for CAF, means the company is 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
 
Posted by chiliandrillman on :
 
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-rec ord-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-indone sia

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-aim-exploration-discuss-discovery-of-rare-ea rth-elements-ree-in-anthracite-trump-boon-to-anthracite-mining-in-us-and-increas e-demand-for-anthracite-coal/37903
 
Posted by chiliandrillman on :
 
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.
 
Posted by chiliandrillman on :
 
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
 
Posted by chiliandrillman on :
 
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.
 
Posted by chiliandrillman on :
 
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-c oal/
 
Posted by chiliandrillman on :
 
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/articles/2018-01-18/india-steel-ministry-seeks-ab olition-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/metals/london/coking-coal-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/Article/3784856/INTERVIEW-Coking-coal-outlook-brig ht-for-2018-on-robust-Chinese-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-cokin g-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/south32-output/update-1-south32-q2-coking-coal-o utput-falls-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
 
Posted by chiliandrillman on :
 
Coking coal price chart - https://ca.investing.com/commodities/coking-coal-futures

Near a multi year high. When you factor in all the current events that are bullish for the price, this is a perfect storm for any company in this sector.
 
Posted by chiliandrillman on :
 
Here are three important factors that will significantly increase the value of CAF:

1) Sales. As reported in their last MD&A, sales are lower than usual apparently, but prices are much higher. However, the next quarters coming up will show increased sales. From the MD&A:

For the 9-month period ended July 31, 2017, the Corporation reported a net income of $595,716 (C$741,080) compared to a net loss of $315,919 for same period the previous year. The increase in net income was directly related to an increase in sales during the period, as well as improved profit margins generated from efficiencies generated from Quantum s new calcining facility, which only started fully operating in August 2016. Revenue increased to $8,443,667, in comparison to $2,907,198, 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 combined with increased prices per sales unit. The Corporation expects to report a slight increase in Sales during Q4 and expects fiscal year end 2018 to reflect increased demand as the Corporation hopes to bring on a new customer.

2) Price of Anthracite(coking coal) for steel manufacturing. This is important as increased sales and higher commodity prices go hand and hand. From the chart below, coking coal is near multi year high's. Problem with the chart is it's general coking coal pricing and not showing the premium CAF gets for it's Anthracite coal, which is rarer and more valuable.

https://ca.investing.com/commodities/coking-coal-futures


3) Rand/USD/CAD Exchange rate. There are many public companies that have good sales, but the exchange rate can either make of break them. In our case, the Rand is getting stronger as a new pro business leader is sworn in and Jacob Zuma leaves. But not only that, the CAD is getting weaker at the same time. This means that once Canaf converts their Rand into USD, then it must be converted into CAD to reflect it's proper value on the TSX Venture, thus giving us an additional premium. The rand is still near a 2 year high versus the USD.

http://www.xe.com/currencycharts/?from=USD&to=ZAR&view=2Y
 
Posted by chiliandrillman on :
 
South African Rand Hits 3 Year High After Zuma Resigns

http://uk.businessinsider.com/south-africa-rand-soars-after-jacob-zuma-resigns-2 018-2

Remember, the stronger the Rand, the more CAF profits convert into USD. Plus the new leadership is pro business and will make the economy stronger.
 
Posted by chiliandrillman on :
 
Canaf terminates B-BBEE agreement with Elkhat

2018-02-21 14:13 MT - News Release


Mr. Christopher Way reports

Canaf announces termination of B-BBEE Agreement for South African Subsidiary

Canaf Group Inc. has terminated the agreement to sell 30 per cent of its subsidiary to Elkhat Pty. Ltd., as part of its Broad-Based Black Economic Empowerment, transaction. Further to the announcement on Jan. 29, 2018, the company advises that a letter of termination has been issued to Elkhat Pty. Ltd., after the parties failed to agree final terms of the transaction. The company remains confident that it will complete its B-BBEE transaction for its South African subsidiary, Southern Coal Pty. Ltd., with a new partner, which has already been identified. The terms of any new agreement will remain the same in principal and the company expects the new transaction to close by May 18, 2018.

Christopher Way, chief executive officer of Canaf, states, "Despite Elkhat and the company not being able to agree on final terms of the transaction, the company 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."

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.
 
Posted by chiliandrillman on :
 
Canaf Group earns $541,808 (U.S.) in fiscal 2017

2018-02-23 13:13 MT - News Release


Mr. Christopher Way reports

CANAF ANNOUNCES FINANCIAL RESULTS FOR YEAR ENDED 31 OCTOBER 2017

Canaf Group Inc. has released its financial statements and management's discussion and analysis for the year ended Oct. 31 2017.

For the year, revenue increased to $10,669,117 (U.S.) from $4,703,528 (U.S.) the previous year, and the corporation recorded a net profit of $541,808 (U.S.) in comparison with a loss of $179,155 (U.S.) the previous year. EBITDA (earnings before interest, taxes, depreciation and amortization) for the year was recorded at $1,213,806 (U.S.) or approximately $1,557,269 (Canadian).

The corporation is extremely pleased with the promising results, which demonstrate a clear increase in demand for its calcine product, which is expected to remain throughout the current fiscal year ending Oct. 31, 2018.

Christopher Way, chief executive officer, stated: "The annual results reflect a significant turnaround in comparison to a depressed previous year, and position the company well for the current year, during which we plan to complete our broad-based black empowerment program, further improve on making efficiencies in the business, and also looking at potential investment opportunities in southern Africa."

For more details and discussion on the results, the financial statements and management discussion and analysis can be viewed on SEDAR or on 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.
 
Posted by chiliandrillman on :
 
CAF made $190K net income in Q4 except there was a $244K tax expense for the year, plus $40K bank loan interest. On top of that, CAF was able to pay $300K of the $400K bank loan they had. This was used to buy new equipment in 2014. Impressive that they were able to put down $540K US and pay off $1.15 of the $1.25 million USD borrow(with interest) and not diluting the stock by raising funds. Plus keep in mind that 2015-2016 were not very good years either. This stock deserves much more credit.

November 18, 2014, Vancouver, British Columbia - Canaf Group Inc. (TSXV: CAF) ("Canaf") the Canadaregistered mining group, is pleased to announce agreed terms for the acquisition of a new processing plant worth R20 million (South African Rand) for its South African owned coal beneficiating operation, Quantum Screening and Crushing (Pty) Ltd., (“Quantum”). The new anthracite beneficiating facility, (“Calciner 3”) will be installed and commissioned at its operation near Newcastle, KwaZulu Natal, South Africa. Calciner 3 is being purchased from a South African company specialising in furnace technologies. In May 2014 Quantum ran a successful trial of material through Calciner 3, and as a result Quantum signed a deal earlier this month to acquire the asset, subject to financing. Payment terms for the Acquisition and Loan Facility The value of the acquisition is R20 million (approximately US$1.8million). During November 2014, the Company paid a deposit of R6 million (approximately US$0.54million) from cash and working capital. The balance of the acquisition will be paid by a loan facility of R14million (approximately US$1.25million), which will be provided in payments as and when Quantum requires it, and borrowed over a period of 48 months, however it is the intention of the Company to pay down the loan within 24 months. The loan facility will be provided by Quantum’s existing bank, ABSA Business Bank, South Africa. In addition to the payments for the acquisition, the Company expects to invest approximately R2 million (US$0.18million) in civil and electrical infrastructure for the new facility; this investment will come from working capital. Motivation for New Calciner 3 The purchase of Calciner 3 is not only due to an expected increase in demand for Quantum’s product looking forward to 2015, but the new plant will also be environmentally compliant and significantly more efficient. Increased demand is expected to come from the newly refurbished ArcelorMittal Newcastle steel facility as well as an expected new contract during the course of 2015. Calciner 3 will produce the same product as Quantum’s existing two plants, however, the design is far more environmentally beneficial and does not use electricity as its source of heat. This new, autogenous (selfsustaining) calciner will offer the following benefits to the Company, which include: 1. Reduction of electricity consumption by 95% for each tonne of calcine product produced. 2. Increase of current capacity of Quantum by up to 60%. 3. Significant environmental improvements compared to Quantum’s existing calciners. The Company plans to commission the new facility, Calciner 3, in May 2015. Subsequent to this, the Company plans to then convert Quantum’s existing two calciners to a similar design as Calciner 3; this will be scheduled in a way that will safeguard sales to existing customers and is expected to commence during the fiscal year 2015- 2016.
 
Posted by chiliandrillman on :
 
CAF.V(Canaf Group Inc.) Year End Results. Financials + MD&A
Ending October 31st 2017, Released February 23rd 2018
Note – Q1 2018 Results Will Be Released End Of March 2018
All Information Below Can Be Found On SEDAR

Price: $0.09
Common Shares: 47,426,195
Warrants/Options: 0
Website: www.canafgroup.com

Financials (ALL IN US DOLLARS)

ASSETS
Cash: $453,609
Trade Receivables: $1,314,828
Sales Tax Receivable: $357
Inventories: $472,221
Prepaid Expenses: $36,220
Property, Plant & Equipment: $1,037,996
Intangible: $1
Total Assets: $3,315,323

LIABILTIES
Trade Payables: $757,875
Sales Tax Payable: $32,010
Income Tax Payable: $77,805
Current Portion Of Bank Loan: $310,819
Remaining Bank Loan: $106,063
Deferred Tax Liability: $122,022
Total Liabilities: $1,406,594

Asset/Debt Ratio: 2.36:1

Revenue
Sales: $10,699,117
Cost: $9,476,007
Gross Profit: $1,223,110

G&A Expense: $417,951
Bank Interest: $86,837
Total Expenses: $504,788

Income: $718,322
Interest Income: $17,962
Income Tax Expense: $194,476

Net Income: $541,808
Foreign Currency Loss: $439,664

Converted From USD to CAD
$439,664 X 1.25 = $549,580 CAD

Earnings Per Share: $549,580 / 47,426,195 = $0.012 cents

MD&A Highlights

OVERALL PERFORMANCE AND OUTLOOK

The outlook and profitability for the coming year 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 as one with a very positive outlook for 2018 following its recent change of President.

The fiscal year ended 31 October 2017 saw the Corporation recover from significantly reduced sales between mid-2015 to mid-2016, when depressed global commodity prices affected the Corporation’s customers negatively, which was reflected in one customer closing down for 7 months of the year and another reducing demand by 50%

Revenue for the year ended October 31, 2017 was $10,669,117 (2016 $4,703,528) a $5,965,589 127% increase, and the Corporation returned to profitability with net comprehensive income for year ended October 31, 2017 of $439,664 (2016 net comprehensive loss $162,065) a $601,729 favourable variance. The results reflect the previously reported turnaround from increased demand with sales remaining strong.

During 2016, the Corporation commissioned a new, and more efficient, calcining facility, which began to produce saleable product during Q2, 2016. The new facility reduced operating costs and improved margins and profits as demand also increased. Management believes it is in a stronger position with Quantum being one of a few suppliers of a low volatile reductant, a situation, which has allowed the Corporation to emerge as a dominant player in South Africa

Operations generated $587,509 in cash during the year ended October 31, 2017 (2016 used $11,722) as the Corporation recovered from 8 months of depressed sales and demand for their product, which started in Q3, 2015.

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 ($27,690 translated at October 31, 2017 exchange rate). During the year ended October 31, 2017, the Company incurred interest expense totaling $86,837 (2016 – $71,721).

UPDATE ON UGANDAN 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 my MMAKS Advocates, Kampala, against KML is at no cost to the Corporation, but any award in favor of the Corporation 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.
 
Posted by chiliandrillman on :
 
CAF.V 10 Year Performance Chart

Year Revenue($USD) Profit/Loss $USD) Assets ($USD) Liabilities ($USD) Asset/Debt Ratio 52 Week High - Low
2007 $6,193,884 -721,465.00 $7,203,120 $4,822,980 1.493499869 $0.38 - $0.08
2008 $9,038,397 -2,639,324.00 $3,134,842 $3,336,654 0.939516654 $0.16 - $0.02
2009 $4,561,417 -539,609.00 $3,270,899 $3,239,579 1.009667923 $0.07 - $0.02
2010 $11,807,383 551,552.00 $3,734,633 $3,006,923 1.242011518 $0.09 - $0.02
2011 $13,336,725 574,766.00 $3,704,897 $2,673,936 1.38555934 $0.14 - $0.06
2012 $10,882,074 $126,169 $4,029,063 $2,871,933 1.402909817 $0.10 - $0.05
2013 $14,969,633 $557,797 $4,141,224 $2,426,297 1.71 $0.09 - $0.05
2014 $13,257,224 $201,330 $3,597,561 $1,681,304 2.14 $0.10 - $0.07
2015 $9,156,927 -$285,218 $3,512,225 $1,881,186 1.87 $0.08 - $0.04
2016 $4,703,528 -$162,065 $2,729,318 $1,260,344 2.17 $0.06 - $0.04
2017 $10,699,117 $439,664 $3,315,232 $1,406,594 2.36 $0.11 - $0.05

Notes 1) 2008: The company wrote off it's Uganda investment, taking a major asset hit
2) 2012: Drop in revenue was caused by A) Customer Issues 2) SA National Strikes 3) Rand Devaluation
3) 2013: Certain write downs and one main customer down for 4 months reduced net income
4) 2015: Production issues, strong USD and weaker Rand. CAF bank loan dropped stock price
5) 2016: Sales down from new plant being installed. Q4 2016 marked turnaround
6) 2017: Losses from 2015-2016 recovered, strongest asset/debt ratio in a decade
6a) Rand & Coking Coal prices at multi year high. Bank debt nearly paid off. Stock price still inexpensive
 
Posted by chiliandrillman on :
 
Here are some recent articles over the last two weeks in regards to Anthracite Coal.

1) http://triblive.com/state/pennsylvania/13369159-74/coal-production-seesawing
Note: The United States is the second largest coal producer in the world and Anthracite barely makes up any of it's production.
Key Lines: Weekly anthracite production fell by about 2,000 tons to 38,000 tons and is about 11.1 percent behind the 2017 year-to-date total. National coal production in 2018 is about 6.8 percent behind 2017 production.

2) https://www.workboat.com/blogs/maritime-matters/can-coal-exports-fill-void/
Key lines: A curious example is the shipment of 700,000 tons of steam coal from Pennsylvania and West Virginia to Ukraine to displace Russian coal imports. Half of the tonnage, 350,000, will be anthracite coal that originated in central Pennsylvania in the heart of old hard coal country. There is some optimism in the coal sector that increased exports will take up some of the slack from the domestic markets. However, as long as the U.S. is a swing export coal supplier, expect the continuation of the ups and downs in the export market characterized by relatively short-term contracts and small volumes cited in the aforementioned deals.Until the U.S. can be a low cost producer and shipper, export coal will not become a sustaining sector to supplement the permanent loss of domestic coal.

3) https://www.platts.com/latest-news/coal/kiev/ukraines-coal-stocks-at-power-plant s-down-26-26898427
Key Lines: Reserves of anthracite at power plants dropped 8.9% to 601,100 mt, while stocks of thermal coal rose 1.4% to 866,700 mt.

4) https://www.kyivpost.com/article/opinion/op-ed/michael-getto-renewables-reinforc e-ukraines-energy-independence.html
Key Lines: Many of the coal mines in the Donbass are now under defacto Russian military occupation, which creates legal and ethical obstacles to the use of this coal. As a result, Ukraine’s has resorted to importing anthracite coal from the United States and South Africa; but, this is an expensive option for a country currently surviving on a financial lifeline from the International Monetary Fund

5) https://economics.unian.info/10013294-reuters-how-a-u-s-coal-deal-warmed-ukraine -s-ties-with-trump.html
Key Lines: Along with South Africa, Ukrainian-owned mines in Russia have been the main source of anthracite imports but this is fraught with uncertainty. In the past Moscow has cut off gas supplies to the country over disputes with Kyiv, while the Ukrainian government considered forbidding anthracite imports from Russia in 2017 although no ban has yet been imposed. Overall anthracite imports shot up to 3.05 million tonnes in the first 11 months of 2017 from just 0.05 million in all of 2013 - the year before the rebellion erupted.
 
Posted by chiliandrillman on :
 
Multi year high hit today and we got Q1 2018 results coming out in two weeks or less.
 
Posted by chiliandrillman on :
 
Lots of volume today and very little cheap stock if left to buy as we wait for Q1 2018 results to come out next week. Company will keep adding positive cash flow as coking coal supply is diminishing around the world. Major players like BHP, Teck, Acertol, are all having production issues and demand for steel is increasing.

1 / 5,000 0.12 -- 0.125 80,500 / 2
1 / 3,500 0.105 -- 0.13 160,000 / 4
3 / 42,000 0.10 -- 0.15 14,000 / 2
1 / 50,000 0.095 -- 0.175 20,000 / 1
0 / 27,000 0.09 -- 0.18 62,500 / 2
1 / 10,000 0.085 -- 0.20 51,500 / 1
1 / 4,000 0.075 -- 0.29 40,000 / 2
3 / 22,000 0.07 -- -- --
2 / 110,000 0.065 -- -- --
1 / 20,000 0.06 -- -- --
 
Posted by chiliandrillman on :
 
Canaf Group earns $552,815 (U.S.) in Q1 2018

2018-03-28 14:49 MT - News Release

CANAF ANNOUNCES FINANCIAL RESULTS FOR Q1 2018

Canaf Group Inc. has released its financial statements, and management discussion and analysis for the three-month period ended Jan. 31, 2018.

The corporation is very pleased to confirm continued positive results for the quarter, which demonstrate the continued strong performance of the corporation's South African businesses.

Revenue for the quarter increased to $3,273,213 (U.S.); an increase of 9.4 per cent compared with the same quarter last fiscal year, and up 45 per cent from the previous quarter ended Oct. 31, 2017. During the quarter, the corporation recorded a net comprehensive income of $552,815 (U.S.) (2017 $198,221 (U.S.)) and adjusted earnings before interest, taxes, depreciation and amortization of $238,961 (U.S.) (2017 $569,300 (U.S.)).

The corporation expects demand to further increase for Q2, 2018, as demand for Quantum's product remains strong in South Africa.

For more details and discussion on the results, the financial statements and management discussion and analysis can be viewed on SEDAR or on the company 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.
 
Posted by chiliandrillman on :
 
Canaf Group Inc Q1 2018 Financial Results + Management Highlights
(All Information Taken From SEDAR)

Price: $0.095
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: $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

*Note : Canaf Group is currently on track to have a record profit year, already exceeding net income from 2017. $475,000 CAD is equivalent to $0.01 cent earnings. Most profitable junior companies trade in a 8-12 multiple range, making Canaf group undervalued based on the last five quarters.

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).
 
Posted by chiliandrillman on :
 
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.
 
Posted by chiliandrillman on :
 
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.
 
Posted by chiliandrillman on :
 
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.
 
Posted by chiliandrillman on :
 
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.
 
Posted by chiliandrillman on :
 
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.
 
Posted by chiliandrillman on :
 
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.

TSXV:CAF Historical Debt July 12th 18
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.
 
Posted by chiliandrillman on :
 
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.
 
Posted by chiliandrillman on :
 
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
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China to invest $15 billion in South African economy
© Thomas White / Reuters
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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.


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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...

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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
 
Posted by chiliandrillman on :
 
https://energy.economictimes.indiatimes.com/news/coal/chinese-investors-plan-10- billion-metallurgical-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
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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.
 
Posted by chiliandrillman on :
 
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.
 
Posted by chiliandrillman on :
 
Sept 3rd 2018 - R14bn deal between SA and China will enable economic growth - https://citizen.co.za/business/2003901/r14bn-deal-between-sa-and-china-will-enab le-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-asia n-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-safrica-brics-china/chinese-investors-plan-10 -billion-metallurgical-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/article/manganese-takes-pole-position-in-arms-e arnings-surge-2018-09-10/rep_id:4136

Also a reminder that CAF Q3 results will be out in a few weeks or sooner.
 
Posted by chiliandrillman on :
 
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.
 
Posted by chiliandrillman on :
 
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.
 
Posted by chiliandrillman on :
 
Article: Anthracite Coal Market Heating Up Due To Global Demand & Supply Issues

http://news-australia-today.com/index.php/2018/09/28/anthracite-market-analysis- to-2023-top-10-companies-trends-growth-factors-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.

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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.

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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.
 
Posted by chiliandrillman on :
 
https://simplywall.st/stocks/ca/materials/tsxv-caf/canaf-investments-shares/news /is-canaf-investments-incs-cvecaf-18-roe-strong-compared-to-its-industry/

Is Canaf Investments Inc’s (CVE:CAF) 18% ROE Strong Compared To Its Industry?
Kyle Sanford October 6, 2018
Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). We’ll use ROE to examine Canaf Investments Inc (CVE:CAF), by way of a worked example.

Canaf Investments has a ROE of 18%, based on the last twelve months. One way to conceptualize this, is that for each CA$1 of shareholders’ equity it has, the company made CA$0.18 in profit.

Check out our latest analysis for Canaf Investments

How Do You Calculate Return On Equity?
The formula for ROE is:

Return on Equity = Net Profit ÷ Shareholders’ Equity

Or for Canaf Investments:

18% = US$462k ÷ US$3m (Based on the trailing twelve months to July 2018.)

Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. It is all earnings retained by the company, plus any capital paid in by shareholders. Shareholders’ equity can be calculated by subtracting the total liabilities of the company from the total assets of the company.

What Does Return On Equity Mean?
ROE looks at the amount a company earns relative to the money it has kept within the business. The ‘return’ is the amount earned after tax over the last twelve months. A higher profit will lead to a a higher ROE. So, all else equal, investors should like a high ROE. That means ROE can be used to compare two businesses.

Does Canaf Investments Have A Good Return On Equity?
By comparing a company’s ROE with its industry average, we can get a quick measure of how good it is. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. As you can see in the graphic below, Canaf Investments has a higher ROE than the average (11%) in the metals and mining industry.

TSXV:CAF Last Perf October 5th 18
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.
 
Posted by chiliandrillman on :
 
CAF Insider Buying This Week

https://ceo.ca/api/sedi?insider=&symbol=CAF&date=&transaction=&amount=&undefined [company_symbol]=CAF

DateIssuerInsiderTransactionAmountNew TotalRecent filingsFiling date: 2018-10-24

Transaction: 2018-10-24$CAF
Canaf Investments Inc. (formerly Canaf Group Inc.)Way, Christopher Robert

4 - Director of Issuer, 5 - Senior Officer of Issuer
Common Shares
10 - Acquisition or disposition in the public market $7,440
+93,000 vol
$0.08 each4,850,800Older filingsFiling date: 2017-04-27

Transaction: 2017-04-27$CAF
Canaf Group Inc.Way, David

4 - Director of Issuer
Options
52 - Expiration of options
-500,000 vol0Filing date: 2016-12-17

Transaction: 2016-12-16$CAF
Canaf Group Inc.Way, Christopher Robert

4 - Director of Issuer, 5 - Senior Officer of Issuer
Common Shares
10 - Acquisition or disposition in the public market$4,500
+75,000 vol
$0.06 each4,757,800Filing date: 2016-12-15

Transaction: 2016-12-14$CAF
Canaf Group Inc.Way, Christopher Robert

4 - Director of Issuer, 5 - Senior Officer of Issuer
Common Shares
10 - Acquisition or disposition in the public market$600.00
+10,000 vol
$0.06 each4,682,800Filing date: 2016-12-10

Transaction: 2016-12-09$CAF
Canaf Group Inc.Way, Christopher Robert

4 - Director of Issuer, 5 - Senior Officer of Issuer
Common Shares
10 - Acquisition or disposition in the public market$60.00
+1,000 vol
$0.06 each4,672,800Filing date: 2016-12-08

Transaction: 2016-12-08$CAF
Canaf Group Inc.Way, Christopher Robert

4 - Director of Issuer, 5 - Senior Officer of Issuer
Common Shares
10 - Acquisition or disposition in the public market$1,210
+22,000 vol
$0.055 each4,671,800Filing date: 2016-12-08

Transaction: 2016-12-07$CAF
Canaf Group Inc.Way, Christopher Robert

4 - Director of Issuer, 5 - Senior Officer of Issuer
Common Shares
10 - Acquisition or disposition in the public market$275.00
+5,000 vol
$0.055 each4,649,800Filing date: 2016-12-08

Transaction: 2016-12-07$CAF
Canaf Group Inc.Way, Christopher Robert

4 - Director of Issuer, 5 - Senior Officer of Issuer
Common Shares
10 - Acquisition or disposition in the public market$700.00
+14,000 vol
$0.05 each4,644,800Filing date: 2015-10-19

Transaction: 2015-10-19$CAF
Canaf Group Inc.Way, Christopher Robert

4 - Director of Issuer, 5 - Senior Officer of Issuer
Common Shares
11 - Acquisition or disposition carried out privately$31,500
+450,000 vol
$0.07 each4,630,800
 
Posted by chiliandrillman on :
 
more insider buying

https://ceo.ca/api/sedi?insider=&symbol=CAF&date=&transaction=&amount=&undefined [company_symbol]=CAF

Filing date: 2018-11-14

Transaction: 2018-11-14$CAF
Canaf Investments Inc. (formerly Canaf Group Inc.)Way, Christopher Robert

4 - Director of Issuer, 5 - Senior Officer of Issuer
Common Shares
10 - Acquisition or disposition in the public market$7,950
+100,000 vol
$0.0795 each4,950,800Older filingsFiling date: 2018-10-24

Transaction: 2018-10-24$CAF
Canaf Investments Inc. (formerly Canaf Group Inc.)Way, Christopher Robert

4 - Director of Issuer, 5 - Senior Officer of Issuer
Common Shares
10 - Acquisition or disposition in the public market$7,440
+93,000 vol
$0.08 each4,850,800Filing date: 2017-04-27

Transaction: 2017-04-27$CAF
Canaf Group Inc.Way, David

4 - Director of Issuer
Options
52 - Expiration of options
-500,000 vol0Filing date: 2016-12-17

Transaction: 2016-12-16$CAF
Canaf Group Inc.Way, Christopher Robert

4 - Director of Issuer, 5 - Senior Officer of Issuer
Common Shares
10 - Acquisition or disposition in the public market$4,500
+75,000 vol
$0.06 each4,757,800Filing date: 2016-12-15

Transaction: 2016-12-14$CAF
Canaf Group Inc.Way, Christopher Robert

4 - Director of Issuer, 5 - Senior Officer of Issuer
Common Shares
10 - Acquisition or disposition in the public market$600.00
+10,000 vol
$0.06 each4,682,800Filing date: 2016-12-10

Transaction: 2016-12-09$CAF
Canaf Group Inc.Way, Christopher Robert

4 - Director of Issuer, 5 - Senior Officer of Issuer
Common Shares
10 - Acquisition or disposition in the public market$60.00
+1,000 vol
$0.06 each4,672,800Filing date: 2016-12-08

Transaction: 2016-12-08$CAF
Canaf Group Inc.Way, Christopher Robert

4 - Director of Issuer, 5 - Senior Officer of Issuer
Common Shares
10 - Acquisition or disposition in the public market$1,210
+22,000 vol
$0.055 each4,671,800Filing date: 2016-12-08

Transaction: 2016-12-07$CAF
Canaf Group Inc.Way, Christopher Robert

4 - Director of Issuer, 5 - Senior Officer of Issuer
Common Shares
10 - Acquisition or disposition in the public market$275.00
+5,000 vol
$0.055 each4,649,800Filing date: 2016-12-08

Transaction: 2016-12-07$CAF
Canaf Group Inc.Way, Christopher Robert

4 - Director of Issuer, 5 - Senior Officer of Issuer
Common Shares
10 - Acquisition or disposition in the public market$700.00
+14,000 vol
$0.05 each4,644,800Filing date: 2015-10-19

Transaction: 2015-10-19$CAF
Canaf Group Inc.Way, Christopher Robert

4 - Director of Issuer, 5 - Senior Officer of Issuer
Common Shares
11 - Acquisition or disposition carried out privately$31,500
+450,000 vol
$0.07 each4,630,800
 


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