Technology Stocks : CAF.V - Canaf Group Inc.

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From: JRod776/16/2017 12:04:11 PM
   of 38
CAD DD Report

Price: $0.09

Common Shares: 47,426,195

Options/Warrants: Nil

Insider Holdings: 15,391,328 or 32.5% as per


Financials (All in US Dollars – Should Be Converted into CDN Dollars for accurate value)

Q1 2017 Results
Sales: $2,991,706
Net Income: $198,221 USD

Q2 2017 Results
Sales: $3,490,753
Net Income: $236,961 USD

Six Month Results(2017)
Sales: $6,482,459

Net Income: $434,934

Earnings per share after 6 months:
$434,934USD X 1.32(as of June 16th) = $575,444CAD Profit

$575,444 / 47,426,195(total common shares) = $0.012c earnings after Q1/Q2

Trade Receivables: $2,499,259
Tax Receivable: $1,471
Inventories: $541,996
Prepaid Expenses: $35,194

Property & Equipment: $1,253,497

Total Assets: $4,331,418

Trade Payables: $1,784,836
Sales Tax Receivable: $27,511
Income Tax Payable: $947
Bank Loan: $406,699
Overdraft: $6,573

Deferred Tax: $47,363
Total Liabilities: $2,427,510

Asset/Debt Ratio: 1.78:1

MD&A Highlights


The Corporation is very pleased to confirm a second consecutive quarter of strong results for the 3-month period ended April 30, 2017. Revenue for the 6-month period increased to $6,482,459 in comparison to $1,780,616 for the same period last fiscal year, and up 16.7% from the previous quarter ended January 31, 2017. For the 6-month period, the Corporation recorded a net income of $429,652 (C$586,240), in comparison to a net loss of $335,864 for the same quarter the previous year. Adjusted EBITDA rose to $679,582 (C$927,257) for the quarter.

Quantum has performed well for the first half of the year, however the Corporation expects to see a period of reduced demand during Q3 and Q4. For Quantum to reach its full potential, the Corporation recognises the need to broaden its customer base. The Corporation can confirm that it has received interest in its product from a new, major ferro-alloy producer in South Africa, which the Corporation hopes to supply from January 2018; discussions are currently ongoing.

The outlook and profitability for the coming years remains dependent on demand for the Corporation’s calcine product, which the Corporation believes remains positive for the long-term.

The Corporation intends to continue to generate positive free cash flow during the fiscal year-end 2017 and will focus on increasing shareholders’ value, as well as investment to improve the efficiency of its older facilities, or investment into related business opportunities in South Africa.

Revenue increased 264% to $6,482,459, from $1,780,616, for the same period last year. The significant increase in sales is due to a combination of unusually low sales during the last fiscal period, compared to a strong demand during the current period, also at increased prices per sales unit. The Corporation expects to report reduced sales for Q3 and Q4 but expects fiscal year end 2018 to reflect increased demand as the Corporation hopes to bring on a new significant customer and also benefit from an improved, and protected, steel market in South Africa.

Revenue from the sale of calcine and coal has historically been derived from two customers and as a result the Corporation is dependent on these customers for its revenue. Quantum however has been actively working on increasing its customer base and has goals to be supplying at least three different facilities by the end of the current fiscal year. Should the Corporation not be successful in increasing its customer base it will continue to solidify and build on its current supply relationships by engaging in secure, long-term supply contracts.

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